Collins Foods half-year profit boosted by KFC

Company News

by David Chau

Collins Foods Ltd (ASX:CKF) has released its half year results ended 16 October 2016, and they reveal its revenue was up 4.7% to $282.5 million.
The company also reported its half year net profit (after tax) rose 17.2% to $16.8 million.

Collins says this performance was due to the ongoing strength of its KFC business. During the half-year, Collins acquired 13 KFC restaurants around the Victoria/NSW border.

However, KFC same store sales were down 0.6%. Collins also owns Sizzler stores, which also experienced a 0.6% drop in same stores sales.

Collins’ declared fully franked interim dividend of 8 cents per ordinary share (which is 33% higher than last year’s dividend).

As for the company’s priorities the rest of this financial year, Collins acquired 11 KFC restaurants in Germany, which they will consolidate into the Collins Foods network. The company will also continue to pursue further acquisition opportunities as they arise. 

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.