Azzet reports on three stocks with price moving updates today.
Collins Foods slips after mixed reaction to interim update ~
Shares in Collins Foods (ASX: CKF) were trading around 10% higher at the open after the KFC operator posted what at first glance appeared to be a strong underlying interim update.
However, after only six minutes of trading, the market concluded that today’s result wasn’t as great as originally thought, with the share price rapidly falling from a $12.50 high to a low $11.14.
By 1:45 pm AEDT (2:45 am GMT), the stock price was down 1.5% at $11.43.
Driven by strong performance in Australia and Europe, especially in KFC operations, the group posted a 12.7% rise in net profit to $27.2 million for the 24 weeks to October 12, based on a revenue increase of 6.6% to $750.3 million.
While KFC Australia revenue was up 5% to $563.8 million - with same store sales growing 2.3% - KFC Europe revenue was up 14.6% to $162.9 million, with same store sales growth of 1.4%.
Reflecting total and same-store sales (SSS) growth and productivity gains, underlying earnings were up 11% over the previous period to $113.9 million.
However, a notable dampener on today’s result was a 3.9% decline in Taco Bell revenue to $23.6 million, with management telling the market today that discussions with Taco Bell International to transition the business to new ownership are continuing.
Based on the strength of the interim result, management guided to underlying net profit percentage growth in the mid-teens, up from the previous expectation of low to mid-teens.
Commenting on today’s result, Collins Foods' CEO, Xavier Simonet, told the market that despite continuing challenging economic conditions in Europe, new products and impactful brand campaigns continue to positively influence KFC's position as a modern and distinctive brand.
"Our business again generated very strong cash flows, which, combined with disciplined capital deployment, ensures we remain in a very strong financial position with the flexibility and capacity to invest in future growth,” he said.
“This was supported by the successful refinancing of Group debt facilities in September.”
Looking forward, the group expects to invest in growth through network expansion and brand modernisation in Australia, elevating the customer experience to support brand health, which is key to lifting sales.
Meanwhile, in Europe, the group expects to balance near-term optimisation in the Netherlands with creating long-term opportunity in Germany, where it’s keen to buy networks of stores around its two current centres of Düsseldorf and Stuttgart.
“We are excited about the potential of this key strategic opportunity and have made progress on execution,” Simonet said.
"Finally, the cash-generative nature of our business and our strong balance sheet provide us with plenty of capacity to fund organic and inorganic future growth opportunities."
So what exactly didn’t the market like today?
What the market appears to have overreacted to today is management’s reference to the remediation of unpaid entitlements.
As at 12 October 2025, the wage remediation provision was increased to $10.5 million (FY25: $8.1 million) to recognise potential additional amounts that may have been unpaid during the review period.
It’s understood that the provision includes amounts for salaried employee entitlements to be calculated based on a pay period set off rather than based on an annual set off.
Other key numbers announced today:
- KFC Australia underlying earnings up 9.4% to $111.8 million.
- KFC Europe underlying earnings up 19.6% to $20.4 million.
- Taco Bell posted a small earnings loss for the half.
- Underlying net profit after tax, up 29.5% to $30.8 million.
- After-tax net operating cash flows of $69.1 million (HY25: $75.3 million).
- Reduction in net debt to $138.9 million (HY25: $158.9 million).
During 2025, the group opened eight new [KFC] restaurants, lifting the current footprint to 292 nationally, while the group ended HY26 with a European footprint of 79 restaurants.
The board declared an interim fully franked dividend of 13¢ per share, up from 11¢ a year earlier, payable on January 5 to shareholders on the register at December 8.
Collins Foods has a market cap of $1.3 billion; the share price is up 32% in one year and up 6% in the last month.
The stock appears to be in a long-term uptrend, confirmed by multiple indicators.
Consensus is Moderate Buy.
The share price was down 0.60% heading into lunch at $11.53.
Jarden analyst Ben Gilbert has upgraded the stock following a first-half FY26 result beat consensus.
RooLife Group soars on trading update
Shares in RooLife Group (ASX: RLG) were trading 25% higher after the e-commerce and digital marketing provider updated the market on its RLG Coffee brand in China.
Since launching its proprietary RLG Coffee brand in China late August 2025, the business has progressed from initial product introduction to achieving in excess of $1.0 million in sales in November.
Management told the market that the rapid scale-up in sales since the recent launch of RLG Coffee in China has been driven through the combination of expanded distribution, a growing SKU range and targeted marketing initiatives.
“This multi-channel route-to-market provides a scalable and repeatable platform for growing sales of RLG-branded beans, beverages and packaged foods across China’s mainstream consumer market,” management noted.
Sales in China are also clearly benefiting from the sector’s strong structural growth, with consumption increasing at around 21% per annum since 2011, compared to a global average of approximately 1.8%.
Underpinning the company’s RLG’s Coffee expansion strategy are forecasts for the sector in China to generate more than US$20 billion in revenues by 2025.
Industry analysts expect China’s coffee sector to exceed US$230 billion in the coming years, highlighting its status as one of the world’s fastest-growing coffee markets.
The RLG Coffee range is now sold in China through:
- Flagship storefronts such as JD.com, Tmall and Douyin.
- Sub-distribution channels providing nationwide access through general trade, supermarkets, convenience and specialty retail.
- Offline café and foodservice customers, supported by partner distributors.
Commenting on today’s market update, RooLife Group CEO, Bryan Carr, told the market that RLG Coffee demonstrates the company’s strategy in action – identifying demand, deploying data insights and rapidly introducing proprietary RLG-branded products into high-growth markets, indeed, one of the world’s most exciting consumer markets.
At the end of 2024, Shanghai had approximately 9,115 coffee shops — more than London, New York, or Tokyo — confirming its position as one of the world’s most densely ‘caféd’ cities.
“In November, sales from RLG Coffee exceeded $1.0 million, only a few months after launch,” he said.
“Coffee is becoming a core pillar of RLG’s growth targeting the food, beverage and health and wellness space.”
Carr believes the coffee category, together with the company’s other priority sectors, will contribute meaningfully to revenue growth and margin expansion as it continues executing its data-driven product strategy in China and other high-growth markets.
Today’s market update follows the RLG Global Trading (Zhuhai) Co., Ltd, a wholly owned subsidiary of RLG, which entered into a two-year binding Supply and Procurement Agreement with Zhongshan Runlian - 20 September 2025 - representing a minimum contract value of RMB 300 million (~A$64 million) over the period to 20 September 2027.
The RLG Coffee launch builds on RooLife’s recent partnership with Fortune China 500 company Eternal Asia Supply Chain Management, which services 1 million retail outlets and 2,600 major enterprises in more than 320 cities across the country.
RooLife Group has a market cap of $9.3 million; the share price is up 25% in the last week.
The stock’s shares have been in a downtrend confirmed by multiple indicators.
Consensus does not cover this stock.
EVT Ltd rises after completing Pro-invest Hotels acquisition
Shares in EVT (ASX: EVT), formerly Event Hospitality and Entertainment Ltd, were up 1.5% after the Hospitality and cinema giant announced the complete acquisition of Pro-invest Hotels, launching EVT Connect Hospitality, a new growth pillar aimed at enhancing third-party hotel brand performance.
This acquisition positions EVT as the second-largest hotel operator in Australia and New Zealand (NZ), with over 100 hotels and resorts.
Valued at $74 million, the deal is expected to contribute an estimated $8-$9 million in incremental earnings annually, enhancing EVT’s market presence and operational capabilities.
To the uninitiated, EVT manages a portfolio of hotels and resorts under its own brands, such as QT, Rydges, Atura, and LyLo, and offers asset-light management solutions across Australia, NZ, and Southeast Asia.
EVT also provides independent brand creation for asset owners and third-party hotel brand franchise management through EVT Connect Hospitality.
Commenting on today’s update, EVT’s CEO, Jane Hastings, told the market that the official launch of EVT Connect Hospitality - seeded by the successful completion of the Pro-invest acquisition - marks another significant milestone in the company’s hotel growth strategy.
“We welcome the Pro-invest team to EVT and have confidence in a bright future for EVT Connect Hospitality, our third growth pillar under the leadership of Mathew Duff, EVT Director of Commercial and Connect Hospitality,’ she said.
Pro-invest Group will retain asset management responsibilities for the 15 hotels owned by the three hotel investment funds via its fund management platform.
In late October, the company told the market it was optimistic about delivering stronger earnings in the 2025-26 financial year than the previous year.
While EVT flagged a $5 million negative impact stemming from two of its Qld hotel properties, the company expects a rebound in its property earnings.
The group projects that property earnings for the 2025-26 period will be around $7 million, offsetting the losses incurred in Qld.
Reflecting the company’s confidence in its diversified business model and its ability to navigate challenges within the hospitality and entertainment sectors, EVT anticipated full-year earnings to reach around $25 million.
EVT has a market cap of $2.2 billion; the share price is up 2.2% in one year and down 3.3% in the last month.
The stock appears to be in a Medium-term rally, confirmed by multiple indicators.
Most importantly, the 5-day moving average is above the 50-day moving average, and the 20-day moving average is rising.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
