Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Collins Foods (ASX:CKF) share price sizzles on HY24 result

The Collins Foods Ltd (ASX: CKF) share price has jumped after reporting its FY24 first-half result.

Collins Foods is a major KFC franchisee business in Australia and Europe. It also has a growing franchisee Taco Bell business in Australia.

HY24 result

Collins Foods reported various numbers including its underlying continuing operations (CO) which excludes Sizzler Asia. Here are some of the highlights from the report for the first six months of FY24:

  • CO revenue rose 14.3% to $696.5 million
  • CO EBITDA (EBITDA explained) grew 16.7% to $109.9 million
  • CO EBIT rose 23.1% to $ 61.5 million
  • CO net profit after tax (NPAT) jumped 28.7% to $31.2 million
  • Statutory NPAT of $50.5 million, up $40 million
  • Net operating cash flow grew $25.1 million to $82.2 million
  • Interim dividend per share rose by 4.2% to $0.125

Profit growth is good, and is an important driver of the Collins Foods share price.

The company said that KFC Australia HY24 same store sales (SSS) growth was 6.6%, with margins up 37 basis points (0.37%) though higher labour and energy prices are “continuing to exert pressure”. It opened four new outlets in HY24, and it’s on track to open nine to 12 new locations in FY24.

KFC Europe saw SSS growth of 8.8%, with Netherlands SSS of 7.9% and Germany SSS of 11.7%. One new restaurant was opened by a sub-franchisee and it completed the acquisition of eight restaurants in the Netherlands. It’s building a pipeline of acquisition opportunities.

Taco Bell reported SSS growth of 7.9% following product quality improvements, marketing spending and delivery growth. It opened one new restaurant in August and closed two in May, taking the network to 27 restaurants.

Outlook for the Collins Foods share price

In the first six weeks of the second half of FY24, KFC SSS growth was 2.9% in Australia, 8.1% in the Netherlands and 8.6% in Germany. Taco Bell has seen SSS growth of 8.7%.

It’s expecting to expand its KFC network, organically grow in the Netherlands and acquire and develop other opportunities.

I think this is business isn’t going to shoot the lights out, but it’s steadily growing its network, revenue and profit over the long-term, which is the type of business that can deliver good returns. It has recovered from the tricky FY23 period. The growing dividend is a useful boost too.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report — or get it emailed to you — for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our Terms, Financial Services Guide, Privacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content