Collins drives Dutch KFC expansion plans

SHARES in Collins Foods surged almost 7 per cent on the back of a deal with US food giant Yum! Brands to expand its footprint in Europe.

Collins chief executive Drew O’Malley said the landmark deal with Yum! will give his company huge control over the future of the KFC franchise in the Netherlands.

It will see Collins Foods store network of about 30 stores in the Netherlands grow by another 130 stores over the next 10 years.

The breadth and scope of the deal excited investors, sending Collins Foods shares up 6.9 per cent, or 83c, to $12.81.

Mr O’Malley said it was the first franchise agreement of its kind inked for the KFC fastfood chain and underscored the confidence Yum! has in Collins Foods to lead the brand in the Netherlands.

“Yum! has never done a deal like this before, for KFC, they’ve done master franchise deals for Pizza Hut but never done one for KFC structured like that,” Mr O’Malley said.

Collins Foods already operates more than 250 KFC stores in Australia.