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.