Collins Foods (CKF) AI Stock Analysis

• Market Cap: AU$1.04B
• Dividend Yield: 3.39%
• Average Volume (3M): 628.01K
• Price to Earnings (P/E): 118.1
• Beta (1Y): 0.59
• Revenue Growth: 2.06%
• EPS Growth: -84.35%
• Country: AU
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Restaurants
• EPS (TTM): 0.23
• Shares Outstanding: 117,943,306
• 10 Day Avg. Volume: 366,804
• 30 Day Avg. Volume: 628,013
• PEG Ratio: -0.92
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$9.85
• Price Target Upside: 11.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 63 Neutral
• Price Target: AU$10.00 ▲(12.87%Upside)

Collins Foods' stock is supported by strong technical trends and robust cash flow management. However, the high P/E ratio and overbought technical indicators present potential risks. The company's financial performance, while showing good revenue growth, is challenged by profitability issues and rising debt levels. Investors should be cautious of the stock's high valuation and monitor for any shifts in operational efficiency.

Positive Factors

Expansion

Plans to expand in new European markets via M&A are viewed positively, with an investor day planned as a catalyst.

Profitability

There is a pathway for improved medium-term profitability for the core KFC Australia franchise, underpinned by improved execution and COGS tailwinds.

Negative Factors

Energy Costs

Energy costs remain elevated in Australia, affecting the overall cost structure.

Interest and Tax Costs

Higher below-the-line interest and tax costs result in a slight lowering of estimated earnings per share.

Collins Foods Business Overview & Revenue Model

Company Description

Collins Foods Limited engages in the operation, management, and administration of restaurants in Australia, Europe, and Asia. The company operates restaurants under the KFC, Taco Bell, and Sizzler brands. As of December 31, 2021, it operated 261 franchised KFC restaurants in Australia, 17 franchised KFC restaurants in Germany, and 45 franchised KFC in the Netherlands; 20 Taco Bell restaurants, including 13 in Queensland, 6 in Victoria, and 1 in western Australia; and 66 franchised Sizzler restaurants in Thailand and Japan. Collins Foods Limited was founded in 1969 and is based in Hamilton, Australia.

How the Company Makes Money

Collins Foods generates revenue primarily through the operation of its KFC and Taco Bell franchises. The company's income is derived from sales of food and beverages in its restaurants. Collins Foods benefits from franchise agreements that provide access to established brand recognition and marketing support from the franchisors, Yum! Brands. Additionally, Collins Foods may engage in strategic partnerships and pursues expansion opportunities to increase its market presence, which can enhance revenue through increased customer reach and sales volumes. The company also focuses on optimizing operational efficiencies to improve profitability.

Collins Foods Financial Statement Overview

Summary

Collins Foods exhibits commendable revenue growth and cash flow management, albeit with challenges in maintaining profitability and managing rising debt levels. The company should focus on improving operational efficiency and managing leverage to ensure long-term financial stability.

Income Statement

Collins Foods has shown a strong revenue growth trend over the past few years, but recent profitability metrics such as EBIT and net profit margins have weakened, likely impacting overall profitability. The gross profit margin remains strong, indicating efficient cost management, yet the declining EBIT margin suggests challenges in operational efficiency.

Balance Sheet

The company has maintained a stable equity base, but the rising debt levels have increased the debt-to-equity ratio, posing potential financial risks. The equity ratio is fair, but the high leverage could impact financial stability if not managed carefully.

Cash Flow

Collins Foods has demonstrated strong operating cash flow, which is a positive indicator of cash-generating ability relative to net income. Free cash flow growth has been positive, supporting potential for reinvestment and shareholder returns, despite some fluctuations in capital expenditures.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.52B	1.49B	1.35B	1.18B	1.07B
Gross Profit	776.42M	750.95M	676.27M	619.34M	559.91M
EBITDA	186.24M	227.85M	146.26M	203.99M	174.32M
Net Income	8.83M	76.72M	12.75M	54.80M	32.95M
Balance Sheet
Total Assets	1.48B	1.42B	1.54B	1.41B	1.27B
Cash, Cash Equivalents and Short-Term Investments	119.12M	83.82M	80.24M	97.22M	95.72M
Total Debt	890.83M	834.54M	843.37M	748.38M	669.30M
Total Liabilities	1.08B	991.78M	1.16B	889.44M	790.87M
Stockholders Equity	405.32M	426.44M	384.50M	393.53M	362.60M
Cash Flow
Free Cash Flow	115.69M	93.64M	70.59M	83.12M	81.35M
Operating Cash Flow	181.44M	176.39M	146.22M	156.33M	128.25M
Investing Cash Flow	-67.91M	-53.55M	-93.54M	-97.31M	-50.92M
Financing Cash Flow	-77.97M	-118.90M	-65.94M	-61.95M	-93.03M

Collins Foods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CKF, the sentiment is Positive. The current price of 8.86 is below the 20-day moving average (MA) of 8.88, above the 50-day MA of 8.17, and above the 200-day MA of 8.01, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 28.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CKF.

Collins Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CKF	63 Neutral	AU$1.04B	118.13	2.40%	3.39%	2.06%	-84.35%
Sector *	62 Neutral	C$5.30B	8.88	20.23%	3.48%	3.08%	9.19%
DPZUF	―	$1.13B	103.84	2.09%	5.80%	―	―
RFGPF	―	$83.97M	16.90	4.31%	―	―	―
36S	―	€1.52M	―		―	―	―
GYG	55 Neutral	AU$2.84B	―	-1.13%	―	26.77%	51.19%
AMA	48 Neutral	AU$420.87M	440.00	1.53%	―	-1.09%	―

Collins Foods Corporate Events

Collins Foods Announces Director’s Interest Change

Collins Foods Limited announced a change in the director’s interest, specifically regarding 38 shares issued to Nicki Anderson under the company’s Dividend Reinvestment Plan. The disclosure was delayed due to an administrative oversight, but the company reassures stakeholders that it has adequate procedures to comply with ASX Listing Rules, ensuring transparency and adherence to regulatory obligations.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$11.00 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Issues Employee Incentive Securities

Collins Foods Limited has announced the issuance of 635 ownership share plan rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize employees and align their interests with the company’s growth objectives, potentially enhancing employee engagement and retention.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$11.00 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Announces Cessation of Certain Securities

Collins Foods Limited announced the cessation of certain securities, specifically performance rights and ownership share plan rights, due to unmet conditions. This development may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s strategic financial adjustments.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$11.00 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Announces New Quotation of Securities on ASX

Collins Foods Limited has announced a new application for the quotation of securities on the Australian Securities Exchange (ASX). The company will be quoting a total of 60,590 ordinary fully paid securities, which were issued on June 26 and June 27, 2025. This move is part of the company’s ongoing efforts to manage its capital structure and enhance liquidity, which may positively impact its market positioning and shareholder value.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$11.00 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Australian Retirement Trust Becomes Substantial Holder in Collins Foods

Collins Foods Limited has announced that Australian Retirement Trust Pty Ltd, acting as trustee for the Australian Retirement Trust, has become a substantial holder in the company as of July 4, 2025. The trust now holds 5,914,877 fully paid ordinary shares, representing a 5.018% voting power in Collins Foods. This development signifies a notable investment in the company, potentially impacting its market positioning and indicating confidence from a significant institutional investor. Stakeholders may view this as a positive endorsement of Collins Foods’ future prospects.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$11.00 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Director Increases Shareholding

Collins Foods Limited has announced a change in the director’s interest, with Director Nicki Anderson acquiring 5,429 ordinary fully paid shares through an on-market trade, bringing her total holdings to 8,019 shares. This acquisition, valued at $49,985.35, indicates a strengthened personal investment in the company, potentially signaling confidence in its future performance and aligning the director’s interests with those of the shareholders.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$11.00 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Announces Change in Substantial Shareholders

Collins Foods Limited has announced a change in its substantial shareholders, with Yarra Capital Management Limited and its associated entities ceasing to be substantial holders as of June 27, 2025. The change involved both acquisition and disposal of voting securities, with significant financial transactions taking place, impacting the company’s shareholder structure and potentially its market dynamics.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$11.00 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Reports FY25 Results in Line with Market Expectations

Collins Foods Limited announced that its financial results for the year ended 27 April 2025 did not materially differ from market expectations. Despite some variations in EBITDA and EBIT margins, interest costs, and tax rates, the company maintained that these differences were not significant enough to require further disclosure. The company also reported a higher-than-expected impairment for its Netherlands restaurant portfolio but emphasized that this non-cash item does not reflect its underlying earnings potential.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$11.00 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Announces Change in Substantial Holding Status

Collins Foods has announced a change in its substantial holding status, as State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of June 25, 2025. This change in holding status may impact the company’s shareholder composition and could influence its market dynamics, as State Street Corporation is a significant player in the financial services industry.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$11.00 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Reports Stronger H2 FY25 Performance Amid Strategic Execution

Collins Foods Limited has reported a stronger performance in the second half of FY25, reflecting effective execution of its strategy amid challenging conditions. The company is actively pursuing both organic and inorganic growth opportunities, positioning itself to capitalize on improving market conditions.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$14.20 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Reports Mixed FY25 Results Amid Challenging Market Conditions

Collins Foods Limited reported a mixed performance for FY25, with revenue reaching a record $1,519.5 million, up 2.1% from the previous year, despite challenging market conditions. The company’s Australian operations saw growth, driven by new restaurant openings and digital sales, while European operations faced difficulties due to cost-of-living pressures and geopolitical tensions. Statutory NPAT fell significantly due to impairments and provisions, but strong cash flows allowed for continued investment in growth and a reduction in net debt. The company remains focused on expanding its KFC network and improving brand health, supported by tax cuts and lower interest rates enhancing consumer sentiment.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$14.20 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Announces New Dividend Distribution

Collins Foods Limited has announced a new dividend distribution for its shareholders, with a payment of AUD 0.15 per share, scheduled for August 5, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may enhance its attractiveness to investors seeking regular income from their investments.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$14.20 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Reports Revenue Growth but Faces Profit Decline

Collins Foods Limited reported a 2.1% increase in revenue to $1.52 billion for the year ending April 27, 2025, but experienced a significant decline in net profit, which fell by 88.5% to $8.83 million. The company declared a final dividend of 15.0 cents per share, maintaining its Dividend Reinvestment Plan, which allows shareholders to opt for shares instead of cash dividends. Despite the revenue growth, the sharp drop in profit may impact investor confidence and reflects challenges in the company’s operational efficiency.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$14.20 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods to Announce FY25 Financial Results

Collins Foods Limited announced the scheduled release of its full-year financial results for FY25 on June 24, 2025. The company will host a briefing session for investors and analysts on the same day, providing insights into its financial performance and strategic direction. This announcement is significant for stakeholders as it offers a glimpse into the company’s operational health and market positioning.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$14.20 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Allan Gray Australia Acquires Substantial Stake in Collins Foods

Allan Gray Australia Pty Ltd has become a substantial holder in Collins Foods Limited, acquiring a 5.55% voting power through ordinary shares. This development signifies a notable investment move by Allan Gray Australia, potentially impacting Collins Foods’ market positioning and shareholder dynamics.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$11.00 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Gains Significant Investment from State Street

Collins Foods has announced a substantial holding by State Street Bank and Trust Company and its associates, indicating significant investment interest in the company. This development could impact Collins Foods’ market positioning by potentially influencing voting power and strategic decisions, given the substantial number of shares involved.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$14.20 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

Collins Foods Ceases Substantial Holding

Collins Foods Limited, a subsidiary of State Street Corporation, has announced that it has ceased to be a substantial holder in the company as of May 14, 2025. This change in substantial holding reflects a shift in the voting securities and associations related to the company, potentially impacting its market positioning and stakeholder relationships.

The most recent analyst rating on (AU:CKF) stock is a Buy with a A$14.20 price target. To see the full list of analyst forecasts on Collins Foods stock, see the AU:CKF Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Collins Foods

Collins Foods has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of May 8, 2025. This change in substantial holding may impact the company’s shareholder structure and influence in the market, potentially affecting its strategic decisions and stakeholder relations.