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Collins Foods Limited (AU:CKF)
ASX:CKF

Collins Foods (CKF) AI Stock Analysis

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AU

Collins Foods

(Sydney:CKF)

Rating:68Neutral
Price Target:
AU$9.00
▲(17.96%Upside)
The overall stock score for Collins Foods Limited is driven primarily by its strong financial performance, characterized by robust revenue growth and profitability. However, the high debt-to-equity ratio presents a risk that could impact long-term stability. The technical analysis indicates a neutral to slightly bearish short-term outlook, while the valuation suggests the stock is fairly priced with moderate income potential. No significant earnings call or corporate event data impacts the score.
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 (CKF) vs. iShares MSCI Australia ETF (EWA)

Collins Foods Business Overview & Revenue Model

Company DescriptionCollins 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 MoneyCollins Foods Limited generates revenue primarily through the operation of its franchised restaurant outlets, including KFC and Taco Bell. The company earns money by selling fast food directly to consumers through its extensive network of restaurants. CKF benefits from franchise agreements that allow it to operate these global brands within designated territories, generating sales from a wide range of menu items. Additionally, the company may receive franchise fees, royalties, and other income streams depending on the structure of its agreements with the parent companies of KFC and Taco Bell. Strategic location selection, marketing initiatives, and menu innovation are key factors that contribute to Collins Foods' earnings, enabling it to maintain competitive advantage and grow its market presence.

Collins Foods Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
1.50B1.49B1.35B1.18B1.07B948.09M
Gross Profit
754.99M750.95M676.27M619.34M559.91M500.19M
EBIT
112.83M136.51M118.28M126.05M111.73M90.37M
EBITDA
165.51M227.85M146.26M219.14M174.32M168.85M
Net Income Common Stockholders
50.39M76.72M12.75M54.80M32.95M31.26M
Balance SheetCash, Cash Equivalents and Short-Term Investments
33.30M83.82M80.24M97.22M95.72M116.30M
Total Assets
391.98M1.42B1.54B1.41B1.27B1.30B
Total Debt
167.09M834.54M843.37M748.38M669.30M707.11M
Net Debt
133.79M750.72M763.13M651.17M573.59M590.82M
Total Liabilities
229.15M991.78M1.16B1.02B904.16M939.78M
Stockholders Equity
162.83M426.44M384.50M393.53M362.60M357.80M
Cash FlowFree Cash Flow
91.00M93.64M70.59M83.12M81.35M91.50M
Operating Cash Flow
169.57M175.11M146.22M156.33M128.25M149.32M
Investing Cash Flow
-81.85M-53.55M-93.54M-97.31M-50.58M-57.34M
Financing Cash Flow
-97.47M-118.90M-65.94M-61.95M-93.03M-56.10M

Collins Foods Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.63
Price Trends
50DMA
8.22
Negative
100DMA
8.10
Negative
200DMA
8.06
Negative
Market Momentum
MACD
-0.18
Positive
RSI
35.01
Neutral
STOCH
41.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CKF, the sentiment is Negative. The current price of 7.63 is below the 20-day moving average (MA) of 7.98, below the 50-day MA of 8.22, and below the 200-day MA of 8.06, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 35.01 is Neutral, neither overbought nor oversold. The STOCH value of 41.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CKF.

Collins Foods Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCKF
68
Neutral
$899.45M17.8112.25%3.54%4.74%57.58%
62
Neutral
$6.88B11.322.95%3.87%2.70%-24.57%
$1.33B123.042.09%5.04%
$74.00M16.904.31%
DE36S
€1.85M
AUGYG
61
Neutral
AU$3.03B-1.13%26.77%51.19%
AUAMA
60
Neutral
AU$502.17M525.001.53%-1.09%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CKF
Collins Foods
7.63
-1.37
-15.18%
DPZUF
Domino's Pizza Enterprises Limited
13.85
-11.21
-44.73%
RFGPF
Retail Food Group Limited
1.60
0.00
0.00%
DE:36S
Oliver's Real Food Ltd.
AU:AMA
Ama Group Limited
0.10
0.06
150.00%
AU:GYG
Guzman y Gomez Ltd.
29.47
0.47
1.62%

Collins Foods Corporate Events

Collins Foods Gains Significant Investment from State Street
May 19, 2025

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
May 16, 2025

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
May 12, 2025

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.

Collins Foods Issues New Employee Incentive Shares
Apr 16, 2025

Collins Foods Limited announced the issuance of 1,184 ownership share plan rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move reflects the company’s strategy to incentivize employees, potentially enhancing workforce motivation and aligning employee interests with corporate goals.

Collins Foods Limited Announces Cessation of Securities
Apr 16, 2025

Collins Foods Limited announced the cessation of certain securities due to unmet conditions. This includes the lapse of 180,680 performance rights and 8,767 ownership share plan rights. The cessation reflects the company’s internal adjustments and may impact its equity structure, signaling a shift in its strategic or operational focus.

Collins Foods Announces Strategic Review and Management Changes
Apr 14, 2025

Collins Foods Limited has announced a strategic review and management changes, with a briefing session scheduled for investors and analysts. This move is likely to impact the company’s operational strategies and could influence its positioning in the fast-food industry, potentially affecting stakeholders’ interests.

Collins Foods Pursues Operational Excellence and Strategic Growth
Apr 14, 2025

Collins Foods Limited is focusing on operational excellence by enhancing its restaurant network to improve customer experiences, drive same-store sales growth, and improve margins. The company is also looking to expand its scale through profitable new restaurant development and disciplined capital allocation, including mergers and acquisitions. Additionally, Collins Foods is reviewing its growth strategy to enhance shareholder value.

Allan Gray Australia Ceases Substantial Holding in Collins Foods
Apr 14, 2025

Allan Gray Australia Pty Ltd and its related entities have ceased to be substantial holders in Collins Foods Limited as of April 10, 2025. This change in shareholding could impact the company’s stock market dynamics and influence its strategic decisions, potentially affecting stakeholders’ interests.

Allan Gray Reduces Stake in Collins Foods Limited
Apr 11, 2025

Allan Gray Australia Pty Ltd, an investment manager, has reduced its voting power in Collins Foods Limited from 6.09% to 5.00% as of April 9, 2025. This change in substantial holding indicates a shift in investment strategy or portfolio adjustment by Allan Gray, potentially impacting the company’s shareholder dynamics and market perception.

Major Investment in Collins Foods by LA County Retirement Association
Apr 10, 2025

Collins Foods Limited has announced that the Los Angeles County Employees Retirement Association has become a substantial holder in the company as of April 8, 2025. This development indicates a significant investment and interest from a major institutional investor, potentially impacting Collins Foods’ market perception and stakeholder confidence.

State Street Corporation Ceases Substantial Holding in Collins Foods
Apr 7, 2025

Collins Foods Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of April 3, 2025. This change in substantial holding may impact the company’s shareholder structure and influence, potentially affecting its strategic decisions and market positioning.

State Street Corporation Becomes Substantial Holder in Collins Foods
Apr 4, 2025

Collins Foods Limited has announced a significant change in its shareholder structure, with State Street Corporation and its subsidiaries becoming substantial holders. This development reflects a shift in the voting power dynamics within the company, as State Street now has the power to control the exercise of voting rights attached to a significant number of shares. This change could potentially influence the company’s strategic decisions and impact its operations, given State Street’s role as an investment manager and trustee.

Collins Foods Substantial Holding Changes
Apr 3, 2025

Collins Foods Limited has announced a change in substantial holding, with State Street Corporation and its subsidiaries ceasing to be substantial holders as of April 1, 2025. This change in holdings may impact the company’s shareholder dynamics and could have implications for its market strategy and stakeholder relationships.

State Street Corporation Becomes Substantial Holder in Collins Foods
Apr 1, 2025

Collins Foods Limited has announced a new substantial holder, State Street Corporation and its subsidiaries, which now hold a significant voting power in the company. This development could potentially influence Collins Foods’ strategic decisions and market positioning, given State Street’s influence as a major institutional investor.

State Street Corporation Ceases Substantial Holding in Collins Foods Limited
Mar 31, 2025

Collins Foods Limited has announced that State Street Corporation and its subsidiaries, which previously held a substantial interest in the company, have ceased to be substantial holders as of March 27, 2025. This change in substantial holding could impact the company’s shareholder dynamics and influence its market positioning, as State Street Corporation’s disassociation may alter voting interests and strategic decisions within Collins Foods Limited.

State Street Corporation Ceases Substantial Holding in Collins Foods Limited
Mar 25, 2025

Collins Foods Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of March 21, 2025. This change in substantial holding could impact the company’s shareholder structure and influence its market dynamics, potentially affecting investor confidence and stakeholder interests.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.