Collins Foods set to spread its chicken wings
COLLINS Foods, Australia’s largest KFC franchisee, is expanding with the acquisition of a further 28 KFC restaurants in Tasmania, South Australia and Western Australia from Yum Brands for $110 million.
The acquisition will lift the number of KFC restaurants operated by Collins Foods to 223.
Collins Foods will fund the acquisition through a $44.1 million offer of new shares and $69.3 million in debt facilities.
Collins Foods yesterday also posted a 3.9 per cent fall in net profit for the year to April 30, down to $27.99 million.
Same-store sales in the KFC Australia business were up 0.7 per cent, compared to growth of 3.1 per cent a year earlier.
During the year the company opened seven new restaurants in Australia and one in Germany, and acquired 13 in Australia and 12 in Germany.
Collins Foods has also announced the acquisition of 16 KFC restaurants in the Netherlands, but the acquisition is now expected to be completed in the first half of fiscal 2018.
Collins Foods chief executive Graham Maxwell said the company’s priorities are to grow the core KFC Australia business while integrating and growing the KFC Europe business.
In Australia, the company plans to build eight new KFC restaurants, integrating the 28 KFC restaurants into the Collins Foods’ network.