Collins Foods shares jumped 6.6% by 12:15 pm AEST (2:15 am GMT) on Tuesday as the company reaffirmed its profit guidance for the 2026 financial year (FY26) after providing a trading update for the first 18 weeks of the new year.
The quick service restaurant operator said sales rose 6.7% between 28 April and 31 August 2025 compared with the prior corresponding period, driven by same store sales growth (SSSG) in all markets for its KFC fried chicken stores.
KFC sales grew 5.1% in Australia, 4.8% in the Netherlands and 8.4% in Germany with SSSG of 2.3%, 1.2% and 5.8% in each of these markets, respectively.
The company reaffirmed FY26 guidance, which was for year-on-year underlying net profit after tax percentage growth in the low to mid-teens.
“Collins Foods’ positive same-store sales momentum, which began in the second half of FY25, has continued into the early periods of FY26, with sales growth accelerating in all markets,” Managing Director and CEO Xavier Simonet said in an ASX announcement.
He said that although same-store sales comparatives would become more challenging as the year progressed, the stronger performance reflected an enhanced focus on the customer experience and operating disciplines, supported by successful innovation.
Improved sales, lifting labour productivity, reducing food wastage, disciplined cost management, and deflation in some commodities were all contributing to margin expansion.
The company said new restaurant development was on track, including a new store in Germany which opened in mid-August under the new arrangements with the global KFC franchisor Yum! Brands (NYSE: YUM) to accelerate development in the market.
At the time of writing, Collins Foods (ASX: CKF) shares were up 63 cents (6.6%) at A$10.22, capitalising the company at $1.15 billion (US$753.3 million).
