Collins Foods claims robust domestic and international sales growth.

30 Nov 2022 – Collins Foods, a fast-food company traded on the Australian Securities Exchange (ASX), reported a 15 percent growth in sales ($614.3 million) across all of its business groups, including the Australian, European, and Asian markets, in the most recent half.

 

The resiliency of QSRs (quick service restaurants) and the half-year increase, according to Drew O’Malley, MD and CEO, has protected margins from inflationary challenges.

 

“Although we anticipate inflationary pressures to persist in the near future, we continue to pursue our long-term growth agenda and will continue to invest in new restaurant builds, equipment, technology, and operational innovations to provide unmatched experiences for our customers and our people,” O’Malley said.

 

KFC Australia

 

The company’s KFC franchisees in Australia saw a 10.6% increase in sales to $479.6 million despite relatively flat transactions during the preceding quarter. Collins Foods attributed the boost in profitability to the July launch of Uber, robust delivery sales, and improved customer acceptance of digital ordering through the KFC app (click and collect).

 

Taco Bell

 

Taco Bell’s sales climbed by 42.6% to $21.1 million as a result of the launch of four new locations during the first half and seven new restaurants during the same time of the previous year. Before the expected arrival of Uber Eats early in the second half, delivery accounted for 15.6% of total revenues.

 

During the first half, the firm built four additional drive-thru Taco Bell locations, two in Melbourne and two in Perth, bringing the total number of outlets to 13 in Queensland, eight in Victoria, and three in Washington.

 

KFC Europe

 

As the firm continues to expand in Europe, its revenue increased by 32% ($118 million), driven by same-store sales growth of an anticipated 10.4% – indicating greater ticket and transaction volumes – which it regarded as a significant improvement above pre-Covid sales.

 

In Germany, KFC outlets owned by Collins Foods saw same-store sales increase of 14.6% and in the Netherlands, same-store sales growth of 9.2%.

 

In the Netherlands, inflationary pressures were somewhat countered by revenue growth and greater operational management. In addition, the firm recently introduced a vegetarian option to meet the growing demand for plant-based goods.

 

Sizzler Asia

 

The company’s Sizzler Asia franchisees reported a 100-percent rise in royalty income to $1.8 million and attributed the outstanding performance to the better operating circumstances for dine-in restaurants compared to the preceding quarter as a consequence of Covid-19 limits in the first half of last year. In Japan and Thailand, Collins Foods has 69 restaurants and 7 kiosks.

Collins Foods’ perspective

 

O’Malley, commenting on the firm’s vision, said that the company aims to establish up to 12 KFC outlets in Australia this fiscal year and three in the Netherlands the following month in order to reach its goal of 130 additional restaurants by 2031.

 

“We continue to examine the Australian and European markets for merger and acquisition prospects to expand Collins Foods’ market share,” he said. “Because we operate in the robust QSR industry, we are well positioned to manage the difficult market.”

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