Collins Foods sees growth across Australia, Europe drags down performance

Its net operating cash flow grew from $176.4 million to $181.4 million year-on-year. (Source: Bigstock)

By Darshana Gupta June 24, 2025

Text Size

Collins Foods’ revenue rose 2.1 per cent to $1.52 billion, up from $1.48 billion last year, with growth in Australia offset by a poor performance in Europe.

The company’s underlying EBITDA remained flat at $228.5 million despite better economic conditions and cost inflation.

Collins, the fast-food chain operator, net operating cash flow grew from $176.4 million to $181.4 million year-on-year, enabling the company to invest significantly in its restaurant network and technology.

KFC Australia saw a 3 per cent increase in revenue from $1.12 billion to $1.15 billion year-on-year, with a 0.5 per cent increase in its underlying EBITDA to $222.6 million.

Collins Foods closed one KFC in Australia and opened 10 new restaurants, bringing its footprint to 288 nationally.

Forty restaurants were remodelled, with another seven to 10 slated to open in the coming financial year.

Digital investments continued, with kiosks being rolled out to over 100 restaurants over the year, and the company is on track to open between 28 and 30 new KFC restaurants by 2028.

“In FY26, we will be laser-focused on strengthening operational performance, driving same-store sales growth and margin improvement,” said MD and CEO Xavier Simonet.

“Easing cost-of-living pressures provide a supportive backdrop for growth, while deflation in Australian input costs, particularly chicken and potatoes, and efficiency gains will assist in driving a higher margin.

“We’re doubling down on growth with further investment in network expansion and modernisation in Australia, elevating the customer experience to support brand health, which is key to lifting sales.

KFC Europe saw a 0.4 per cent drop in revenue to $312.3 million, with its underlying EBITDA down 7.5 per cent from $42.5 million to $39.4 million year-on-year.

Collins Foods opened four new restaurants in the Netherlands, with 78 restaurants, with 62 stores in the Netherlands and 16 in Germany.

Taco Bell saw a 2.5 per cent drop in its revenue to $53 million due to a weaker and more competitive consumer environment, with its underlying EBITDA falling to $1.6 million.

“In Europe, we will balance near-term optimisation with long-term opportunity,” said Simonet.

“Innovation and operational excellence is expected to assist in lifting the profitability of our Netherlands portfolio while Germany, our second strategic growth pillar, provides an exciting opportunity to deliver profitable scale,” he said.