Collins Foods accelerates German KFC rollout and refocuses Dutch operations

Collins Foods ( (AU:CKF) ) has provided an update.

Collins Foods is accelerating its European growth strategy by signing an asset purchase agreement to acquire eight KFC restaurants in Bavaria, centred on Munich, and expanding its German development agreements to target 45 to 90 new outlets over four years in Bavaria, North Rhine-Westphalia and Baden-Württemberg. The move materially increases its German scale, strengthens its presence in some of the country’s wealthiest and most populous states, and is backed by KFC parent Yum! Brands, which has granted conditional exclusivity and sees Collins Foods as a key partner in building out the German network.

In the Netherlands, Collins Foods has extended and refocused its corporate franchise agreement with Yum! Brands to 2029, handing back marketing responsibilities from 2027 so it can concentrate on restaurant operations and profitability, with the changes not expected to materially affect earnings. A trading update shows continued total sales growth, with momentum in Australia and Germany and modest growth but softer same-store sales in the Netherlands, and the company reaffirmed its guidance for mid-to-high teens growth in full-year underlying net profit after tax.

The most recent analyst rating on (AU:CKF) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

More about Collins Foods

Collins Foods Limited is an Australian-based quick-service restaurant operator and franchisee, primarily running KFC outlets across Australia and Europe. The company is building Germany as a second strategic growth pillar while also operating in the Netherlands, focusing on scaling its KFC footprint and improving profitability in its European markets.

Average Trading Volume: 285,987

Technical Sentiment Signal: Buy

Current Market Cap: A$1.12B

Learn more about CKF stock on TipRanks’ Stock Analysis page.