Collins Food Limited plans expansion

KFC,YUM BrandsCollins Food Limited plans to build eight new KFC restaurants and significantly remodel 14 existing stores for 2017 after swinging back to a full-year profit.

The food retail operator has swung back to a $29.1 million full-year profit thanks to strong sales from its expanded KFC network.

Revenue for the 12 months to May 1 rose 0.5 per cent to $574.3 million as the company bounced back from FY15’s $10.4 million loss, which came on the back of a writedown in the value of its Sizzler restaurants.

“Strong sales across our KFC restaurants were driven by excellent core product offerings combined with new product innovations and good value offers,” said chief executive Graham Maxwell, whose company lifted final dividend 1.5 cents to 8.0 cents, fully franked.

“Our priorities for KFC are to focus on top line growth, continue the disciplined approach to operational management to maintain margins in Queensland and to unlock further margin opportunities in Western Australia and the Northern Territory,” said Graham Maxwell, CEO, Collins Foods.

Maxwell also said, upon completion, they will consolidate the 13 recently acquired KFC restaurants into the Collins Foods’ network and continue to evaluate further acquisition opportunities.

The KFC and Sizzler restaurant operator has struck a deal last month to buy 13 KFC restaurants around the NSW and Victorian border.

The acquisition was valued for $25.46 million plus acquisition costs, including $10 million in Collins Foods shares.

Maxwell said the group also plans to open several new Sizzler Asia restaurants across Thailand and China in FY17.

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