Zinger kebabs help KFC operator Collins lift sales
New limited-time menu items and flavors helped a major KFC franchisee attract more customers and achieve double-digit profit growth.
Collins Foods said Tuesday it increased sales of its Habanero Hot & Crispy boneless chicken, Zinger Kebab spicy chicken fillet and Sweet Tokyo teriyaki-style chicken.
Australian revenue rose five per cent to $563.8 million in the half-year to 12 October; Same-store sales increased 2.3 percent.
Underlying earnings before interest, taxes, depreciation and amortization rose 9.4 percent to $111.8 million.
“The KFC brand has strengthened, supported by improvements in brand health, engaging marketing campaigns, product innovation and investments in everyday value initiatives,” said General Manager Xavier Simonet.
KFC leads its fast food peers in Australia with a four-year high in key brand metrics.
“Brand health has been underlined by the effectiveness of KFC’s long-term brand and customer strategies, supported by modern campaigns, menu innovations and initiatives to deliver everyday value,” Mr Simonet said.
Collins Foods opened eight more KFC restaurants in Australia in the six-month period, bringing its total footprint nationwide to 292.
37 restaurant renovations are on track to be completed in 2025, and as of October 12, in-store ordering kiosks have been distributed to 87 restaurants, with the remainder scheduled to receive kiosks next year.
Collins owns 79 other KFCs in Germany and the Netherlands; it also has 27 underperforming Taco Bell restaurants in Queensland, Victoria and Western Australia for which it is in talks to sell.
Collins reported that global revenue increased 6.6 percent to $750.3 million, while underlying earnings increased 11 percent to $113.9 million.
Collins’ statutory net profit after tax rose 12.7 percent to $27.2 million, with operating cash flow of $69.1 million.
But revenue for Taco Bell restaurants fell 3.9 percent to $23.6 million; The business reported an underlying loss of $500,000, compared to a loss of $900,000 the year before.
Collins Foods said discussions with Taco Bell International about transferring the business to new ownership are ongoing.
The company will pay shareholders an interim dividend of 13 cents per share, up from 11 cents per share a year ago.
Collins Foods shares fell 1.4 percent to $11.44 shortly before 11 a.m. ET on Tuesday.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
