Azzet reports on three stocks with price moving updates today.
Collins Foods jumps on German expansion ~
Shares in Collins Foods (ASX: CKF) were trading around 5.9% higher by 1:40 pm AEDT (2:40 am GMT) after revealing plans to acquire eight KFC restaurants in Bavaria, centred on Munich, which increases the quick service restaurant operator’s German restaurant portfolio by around 50%.
Management told the market this morning that it has signed a binding asset purchase agreement to buy the restaurants from JJ Restaurant GmbH & Co for around €31.1 million ($50.3 million) plus working capital, with completion expected between May and June 2026.
Having identified Germany as a key growth market, management plans to significantly increase its footprint in the region by targeting 45 to 90 new outlets over four years in Bavaria, North Rhine-Westphalia and Baden-Württemberg.
It’s understood that three states together account for more than half of Germany’s 83 million population and are amongst the most prosperous states.
Collins Foods also announced a revised corporate franchise agreement for the Netherlands with Yum! Brands, extending the deal to the end of 2029 and shifting marketing responsibilities back to Yum! from 2027.
Management expects the updated agreement to help to sharpen its operational focus and work toward improving profitability in the Dutch market.
Commenting on today’s update, the group’s CEO, Xavier Simonet, told the market the KFC brand has substantial potential in Germany with approximately a fifth of the store footprint of the largest competitor, McDonald’s.
He expects the acquisition of a high-quality KFC portfolio in Bavaria to offer immediate scale and, importantly, create a strong foundation for accelerated development.
“The acquisition meets the financial hurdles that guide our investment decisions, with the network to be acquired operating at higher margins than our existing German restaurants,” he said.
“The updated Netherlands CFA brings our responsibilities into closer alignment with our other operating markets and will enable us to focus more sharply on improving sales and profitability across our network.”
Within its broader second-half trading update, the company also revealed that:
- Australia sales are up 6.2%.
- Germany sales are up 9.1%.
- Netherlands sales are up 4.1%.
Same store sales growth is 3.2%, 4.1%, and negative 0.3%, respectively.
The stock’s share price has had a volatile 12 months, characterised by sharp declines due to weak earnings and cost pressures, followed by significant recovery rallies driven by strong sales growth and an improved outlook for 2026.
Based on the four brokers who cover the stock, as reported on by FN Arena, the stock is trading at a 28% discount to its target price of $12.05.
Collins Foods has a market cap of $1.2 billion; the share price is up 22% in one year and up 11% in the last week.
The stock’s shares have been in a downtrend confirmed by multiple indicators.
Consensus is Moderate Buy.
Liontown sinks on mixed 1H result
Shares Liontown (ASX: LTR) were trading 2.8% lower after the lithium producer posted a sharp increase in production and revenue for 1H FY26, completing its transition to underground mining.
Underpinning a more than doubling of revenue to $207.5 million - as production ramped up at its Kathleen Valley lithium operation in WA – was an increase in average realised price for the period of US$888 per dmt for SC6 concentrate, up from US$811 per dmt a year earlier.
However, investors appear to have reacted negatively to a reported net loss of $184 million for the half year to 31 December and an underlying earnings loss of $7.7 million.
Much of the loss was underpinned by a $104.4 million non-cash accounting charge linked to a convertible note held by LG Energy Solution, which was converted to equity in February.
Commenting on today’s update, Liontown’s CEO Tony Ottaviano told the market that with the Kathleen Valley now a 100% underground operation, the ramp-up is on track with the second half expected to be materially stronger as volumes, recoveries, and pricing all continue to improve.
Ottaviano also reminded the market that it remains one of a small number of producers globally that can bring additional lithium tonnes to market quickly through brownfield expansion of an operating asset.
"The reported loss of $(184) million includes a $(104) million non-cash accounting charge relating to the LGES convertible note, which is primarily a consequence of our share price more than doubling during the half,” he said.
“An estimated $58 million gain is expected to be recognised upon conversion into equity and will be reflected in our full year results.”
With the balance sheet now reset, pro forma gearing (excluding leases) has dropped from 48% to 22% and the miner had $390 million in cash at 31 December 2025 with which to complete the underground ramp-up and progress the 4 Mtpa expansion study.
While underground mining has reached a run rate of one million tonnes a year, the miner is targeting 1.5 million tonnes annually by the end of March 2026.
Liontown finished the period with $390.5 million in cash and said it expects stronger cash generation in the second half as production, recoveries and lithium prices improve.
Other noteworthy 1H FY26 numbers announced today include:
- Production increased 70% on the on the previous period.
- Sales volumes surged 106%.
- Operational costs also declined through the half, with unit operating costs of $985 per dmt and all-in sustaining costs of $1,179 per dmt.
Looking forward, management reminded the market that it’s FY26 guidance remains unchanged, and cash generation is expected to improve through the second half as production continues to ramp up.
Adding to recent selling pressure was the decision by South Korean battery giant LG Energy Solution (LGES) to divest its entire 7.5% shareholding via a block trade, triggering an 8.5% single-day drop and raising concerns about the future of their strategic partnership.
Liontown has a market cap of $5 billion; the share price is up 161% in one year and down 8% in the last month.
While the stock’s 200-day moving average is trending upwards and highlights long-term investor interest in the stock, the 5-day moving average is below the 20-day moving average.
Consensus is Hold.
Whitehaven jumps on ratings agencies’ thumbs up
Shares Whitehaven Coal (ASX: WHC) were up around 5.1% after the coal miner told the market that it has received public credit ratings from S&P, Fitch, and Moody's as part of its refinancing program.
The agencies – which assigned the company sub-investment grade corporate ratings of BB+ from S&P and Fitch and Ba1 from Moody’s – are expected to help the coal miner access global debt markets and lower funding costs.
S&P and Fitch also gave Whitehaven’s proposed senior secured debt instruments investment-grade ratings of BBB-.
Whitehaven – which plans to refinance a US$1.1 billion acquisition facility – told the market that ratings reflect its stronger credit profile following the acquisition and integration of the Daunia and Blackwater metallurgical coal operations, which have enhanced the miner’s diversification, scale and returns through the cycle.
“As we progress the refinancing of the US$1.1 billion acquisition facility, these public ratings from all three major global credit rating agencies provide a strong foundation for accessing global debt capital markets and for issuing senior secured debt instruments expected to be rated at investment-grade levels,” said Whitehaven’s CEO, Paul Flynn.
“This will deliver considerable value to our shareholders as we diversify funding, deliver significant cost savings and lower Whitehaven’s weighted average cost of capital (WACC).”
Like its rivals, New Hope Corp (ASX: NHC) and Yancoal (ASX: YAL), Whitehaven appears to be benefitting from a 25% jump in the price of thermal coal since the start of 2026, plus an updraft since the start of the US-Iran war.
Three weeks ago, Whitehaven posted a surprise first-half loss with weaker realised prices offsetting robust production across its major operations.
Based on the average coal price of $189 per ton, 19% lower than a year ago, revenue is down 28% to $2.48-billion.
On a statutory basis, net profit after tax fell 31% to $69-million.
Looking forward, the coal miner maintained its FY26 outlook, and said run-of-mine (ROM) coal production and coal sales were trending towards the upper end of its forecast range, while unit costs were projected to land in the lower end.
Whitehaven also declared an interim dividend of 4 cents per share and said it plans to spend a further $32-million on share buybacks over the next six months.
Whitehaven has a market cap of $7.5 billion; the share price is up 54% in one year and up 8% in the last week.
The stock is in a strong bullish trend, confirmed by multiple indicators.
Consensus is Hold.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
