Collins Foods reported record revenues, margin expansion and earnings growth for the first half of the 2026 financial year (H1 FY26) as its business continued to grow in its Australian domestic market, along with Europe, despite cost-of-living challenges.
The quick service restaurant operator said statutory net profit after tax (NPAT) rose 12.7% to $27.2 million and underlying NPAT climbed 29.5% to A$30.8 million (US$20.1 million) on revenue, which grew 6.6% to a record $750.3 million (HY25: $703.5 million) in the half year ended 12 October 2025.
Underlying earnings before interest, tax, interest, depreciation and amortisation (EBITDA) rose 11% to $113.9 million, helped by productivity gains, while stable depreciation supported a 20% jump in underlying EBIT to $63.0 million.
Directors declared a fully franked interim dividend of 13 cents per share to be paid on 5 January to shareholders registered on 8 December, up from 11 cents in H1 FY25.
The company said Taco Bell delivered EBITDA of $0.8 million on slightly lower revenue as it continued discussions with Taco Bell International about transitioning the business in Australia to new ownership.
Collins Foods is targeting year-on-year group underlying NPAT percentage growth in the mid to high-teens, up from the previous expectation of low to mid-teens.
Managing Director and CEO Xavier Simonet said Collins Foods executed on its operational priorities by driving profitable same-store sales growth and network expansion in Australia and Europe.
“Our teams delivered strong performance against key priorities in an environment where consumers are still grappling with cost of living challenges,” he said in a news release.
The business generated strong cash flows, which, combined with disciplined capital deployment and the debt refinancing in September, ensured it remained in a strong financial position with the flexibility and capacity to invest in future growth.
At the time of writing, Collins Foods (ASX: CKF) shares were trading 44 cents (3.79%) lower at $11.16, capitalising the company at $1.32 billion.
Collins Foods has operated KFC restaurants in Australia for 50 years and, more recently, expanded the franchise into Germany and the Netherlands while planning to close its Taco Bell restaurants in Australia if it cannot transition them to a new owner.
