Retail News CRM

Tag: collins

  • KFC drives strong annual growth for Collins Foods

    KFC drives strong annual growth for Collins Foods

    The Australian expansion of KFC and Taco Bell drove a 20.3 per cent increase in net profit to $39.1 million for Collins Foods Limited in fiscal 2019.

    The food retailer, which reported its full-year earnings on Tuesday, said revenue was up 16.9 per cent on last year, at $901.2 million, thanks to KFC’s strong growth in all states, with 3.7 per cent same-store sales growth.

    “Over the past 12 months we have consolidated our position as the largest KFC operator in Australia, with initiatives around digital and delivery expected to drive further growth,” Collins Foods’ managing director and chief executive Graham Maxwell said.

    “Our focus on operational initiatives across our brands has underpinned another record result, with revenue now over $900 million and underlying EBITDA of $113.7 million.”

    According to Maxwell, KFC’s result in Australia was driven by increasing transactions and efficiencies, which led to an EBITDA increase of 20.9 per cent to $120 million.

    Additionally, the business has grown its delivery capacity through meal-delivery apps Deliveroo and Menulog, with 64 restaurants nationwide now supporting the services.

    Seven new restaurants were built and opened during the financial year, while two were closed.

    Collins Foods’ Taco Bell rollout in Australia continues to gain traction, Maxwell said, with the brand trading in line with expectations.

    “We have now successfully opened four Taco Bell restaurants in Queensland, and continue to work on developing the pipeline for sites, with 10 restaurants planned for opening before the end of the year, including the planned entry into Victoria in early 2020,” said Maxwell.

    Continuing the scaling down of its Sizzler business in Australia, Collins Foods shuttered a total of two restaurants in FY19, bringing the total number of locations to 12.

    Sizzler same-store sales grew 4.4 per cent in FY19, compared to the 0.5 per cent decline the chain faced in FY18.

    What’s next?

    Looking toward FY20, Maxwell noted the group would continue to focus on executing its operational, delivery and digital initiatives to drive value for customers and shareholders alike.

    “In our KFC Australia business, we are focused on further expanding the delivery network, rolling out and testing digital initiatives such as digital board implementation for drive-thrus, and further strengthening operational systems,” Maxwell said.

    Additionally, the group plans to increase the amount of new KFCs being built, from approximately nine in the year, to approximately ten, as well as the ongoing store refurbishment initiatives.

    “Our rollout of the Taco Bell brand in Australia will gain pace during FY20, with further restaurants to be opened in Queensland and the entry into Victoria in early 2020,” Maxwell said.

    “We intend to complete 10 new restaurant builds by the end of the year, and we remain focused on operational performance to ensure business model returns are delivered.”

    Lees ook:

    Lees ook:

  • Collins Foods’ sales rebound as Europe reopens

    Collins Foods’ sales rebound as Europe reopens

    Listed fast-food chain operator Collins Foods has reported positive same-store sales growth across both its European and Australian markets despite a turbulent economic climate.

    The company’s Taco Bell and KFC franchisees in Australia achieved revenue growth of 11 per cent to $1.2 billion with KFC Australia delivering $955.5 million, up 6.1 per cent.

    KFC’s same-store sales have recovered in Europe with the Netherlands business registering an 18.8 per cent increase followed by Germany at 11.7 per cent. In the Netherlands, Collins Foods will likely open 130 net new restaurants during the next 10 years.

    Taco Bell’s revenue increased 27.5 per cent to $35.8 million with the addition of four new restaurants registering positive growth in the fourth quarter.

    Drew O’Malley, MD and CEO, said significant reinvestments in the business have helped support strong operating cash flow, strengthening the balance sheet.

    “The proven track record of consumer appeal regardless of economic conditions, combined with our relentless pursuit of operational excellence, ensures we are well-positioned to manage through the current inflationary environment,” the company said in its results announcement.

    “With our restaurants performing well and a strong pipeline of new sites, we will continue to grow our store footprint across our QSR brands.”

    The business has plans to open up to 12 more KFC stores in Australia and scale its Taco Bell business alongside.

  • Collins Foods HY profit rises 9 per cent to $24m

    Collins Foods HY profit rises 9 per cent to $24m

    Collins Foods’ underlying half-year profit has risen 9.1 percent to $23.9 million, boosted by a 4.9 percent rise in same-store sales at its KFC Australia franchises.

    The fast-food franchisor says statutory profit for the 24 weeks to October 13 was up 12.1 percent to $24.1 million, as its revenue rose 9.2 percent to $448.8 million in the six months to October 13.

    “Our KFC Australia network delivered enhanced same-store sales growth that, with new restaurant openings, drove strong growth in revenue,” chief executive Graham Maxwell said on Wednesday.

    “Combined with management’s focus on maintaining strong cost control, KFC Australia’s earnings margin grew over the past six months.”

    Collins lifted its interim dividend by half a cent to 9.5 cents and its shares were 4.2 percent higher at $10.13 by 1146 AEDT.

    The company said around 100 of its 233 Australian KFC franchises were now offering delivery through Deliveroo and Menulog, which was helping boost sales volumes.

    Speed of service was also 10 percent faster than the prior year at peak times, the company said.

    Collins Foods said it has opened six new KFC restaurants in Australia in the last seven and a half months and has started a multi-year rollout of digital menu boards from drive-thrus.

    The company opened three new Taco Bells in Queensland in the past three months, bringing its total number of seven across Australia, and plans to open two more in Victoria before the end of the year.

    It is targeted to open 20 new Taco Bells in the next calendar year.

    Revenues at its 40 restaurants in Germany and the Netherlands was up 11.8 percent to $63.7 million, with a national brand refresh helping sales in Germany.

    Lees ook: