KFC operator Collins Foods upgrades profit outlook after delivering record revenue
The nation’s biggest KFC operator Collins Foods has upgraded its profit outlook after delivering a record half-year revenue, boosted by Australia and Germany’s love for fried chicken.
The ASX-listed company operates 292 KFC fast food outlets in Australia, as well 79 in Europe.
Collins Foods on Tuesday said it recorded a 12.7 per cent lift in net profit to $27.2 million in the six months to October 12, as revenue grew 6.6 per cent to $750.3m.
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Sales growth in the first seven weeks of the second-half continued positively, Collins Foods said, with KFC total sales up 5.3 per cent in Australia, 5.6 per cent in the Netherlands and 7.8 per cent in Germany.
As a result, the company is now targeting year-on-year net profit to increase in the mid to high-teens on a percentage basis, up from the previous expectation of low to mid-teens growth.
But Collins Foods is also facing a growing wages bill. As of October 12, the wage remediation provision was increased to $10.5m, up from last year’s $8.1m. The company said it continued to “constructively engage with the Fair Work Ombudsman”.
