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Collins Foods

Collins Foods Limited (ASX: CKF) is an Australian publicly listed quick-service restaurant operator headquartered in , specializing in the franchise management of and brands. The company, founded in 1968, employs over 21,000 team members across its network of 393 restaurants, generating record revenue of A$1.52 billion in fiscal year 2025 (ended April 27, 2025). It operates 288 outlets in , 27 locations in , 62 restaurants in the , and 16 outlets in , with a strategic focus on expansion in and sustainability initiatives such as installations in 196 restaurants. Established by the Collins family, the company opened its first franchise in Kedron, , in 1969, pioneering drive-through service in by 1979. It listed on the Australian Securities Exchange in 2011 and expanded internationally, entering the market with operations in and the starting in 2016–2017, followed by the introduction of in in 2017. Previously operating the brand, Collins Foods divested from it in November 2020 and, as of 2025, announced plans to exit the business in while pursuing aggressive growth in European franchises, targeting 40–70 new restaurants in over the next five years. Under the leadership of Managing Director and CEO Xavier Simonet (appointed November 2024), the company emphasizes core values of , , and employee development to achieve its vision of becoming the world's top operator. In FY25, Collins Foods navigated economic challenges to deliver a 2.1% increase, driven by new openings—including 10 in and four in the —while maintaining a net debt reduction of A$27.6 million and underlying EBITDA of A$228.5 million. Its sustainability strategy integrates environmental responsibility, tying business resilience to and supply chain welfare.

History

Founding and early operations

Collins Foods International was founded on August 13, 1968, by James A. Collins in Culver City, California, as a publicly traded company focused on restaurant operations. Collins, who had earlier entered the food industry with a hamburger stand in 1952 and become a Kentucky Fried Chicken (KFC) franchisee in 1960, established the firm to consolidate his growing interests in casual dining and fast food. The company's initial emphasis was on expanding franchise models in the United States, building on Collins' experience in quick-service restaurants. Prior to the formal founding, Collins acquired the Sizzler Family Steak House chain in 1967, which provided the foundation for the company's early operations. Under his leadership, steakhouses emphasized affordable family dining with an all-you-can-eat and grilled meats, quickly gaining popularity in and expanding to other states. This acquisition marked the start of Collins Foods' diversification beyond , with initial locations operating in key urban markets to capitalize on the post-war boom in casual eateries. The company rapidly grew its franchising in the United States, opening numerous outlets throughout the 1960s and 1970s, and by the early 1990s, it operated hundreds of combined and stores, including over 200 outlets in the U.S., across the U.S. and early international sites. This expansion reflected strategic site selection in high-traffic areas and operational efficiencies that supported consistent growth in the competitive fast-food sector. In 1979, the company introduced the drive-through format to Australia at one of its KFC restaurants. Collins Foods marked its initial international foray by opening the first KFC restaurant in Australia in 1969, in Kedron, Queensland, securing franchise rights for the region. This move introduced the brand to the Australian market and laid the groundwork for further Pacific expansion. However, by the early 1990s, the company shifted focus away from U.S. operations, selling 209 KFC stores to PepsiCo in a deal valued at US$123 million between 1990 and 1991, allowing it to concentrate on international opportunities.

Expansion and key acquisitions

In the early 2000s, following a reduction in its U.S. operations, the company restructured and was renamed Worldwide Restaurant Concepts in 2001 to better reflect its evolving scope. A pivotal shift occurred in 2005 when Worldwide Restaurant Concepts was acquired by a including management and private equity firm for approximately , prompting the relocation of its headquarters to , , and a return to the original name, Collins Foods. This move marked the company's pivot toward the region as its primary base. In 2011, Collins Foods conducted an on the Australian Securities Exchange under the ticker CKF, raising funds to end private equity ownership and support further growth. Post-IPO, Collins Foods pursued aggressive expansion through targeted acquisitions in . In , it acquired 44 stores in and the from for A$55.6 million, significantly bolstering its presence in underserved markets. This was followed by the purchase of 13 stores along the and border in 2016 for A$25.5 million, enhancing connectivity in eastern states. In 2017, the company added 28 stores across , , and from for A$110.2 million, solidifying its status as a leading franchisee in the country. Diversification came in 2017 with entry into the Taco Bell brand, where Collins Foods secured Australian master franchise rights and opened its first store in Annerley, , in November. This move introduced Mexican fast food to its portfolio, with plans for broader rollout. European expansion began in 2016 with the acquisition of 11 stores in , establishing a foothold in the continent's market. In 2017, Collins Foods acquired 16 stores in the from for €62.3 million, accelerating its regional scale. This was further expanded in 2023 with the purchase of eight additional stores in the .

Recent developments and leadership changes

In 2020, Collins Foods closed all nine of its remaining restaurants in by November 15, citing ongoing trading losses exacerbated by the . The company further divested from the brand in 2023 by selling its Sizzler Asia franchise rights to for SGD 20.2 million, completing the transaction in July. In April 2025, Collins Foods announced its exit from operations in , where it had managed 27 stores, planning to transfer the license to a new operator within 12 months amid discussions with International. This decision followed a 0.3% decline in same-store sales for in the first half of 2025. As part of its strategic refocus on core markets, Collins Foods outlined plans in 2025 to open 40 to 70 new outlets in over the next five years, building on its existing 16 locations to capitalize on growth in the quick-service restaurant sector. Leadership at Collins Foods underwent several transitions starting in 2020. Drew O'Malley was appointed managing director and effective July 1, 2020, succeeding Graham Maxwell. O'Malley resigned effective July 1, 2024, for family reasons, with Kevin Perkins—previously CEO from 1985 to 2014—serving as interim CEO from that date, having assumed the role temporarily earlier in February 2024. On November 4, 2024, Xavier Simonet, former CEO of the Australian Trade and Investment Commission, was appointed as permanent managing director and CEO.

Operations

Geographic markets

Collins Foods maintains its primary operations in Australia, where it is headquartered in Hamilton, Queensland. The company operates 288 KFC restaurants and 27 Taco Bell restaurants across the country, with Taco Bell locations distributed in Queensland (14 stores), Victoria (9 stores), and Western Australia (4 stores). In Australia, market strategies emphasize drive-through formats, which the company introduced to the country in 1979 to cater to consumer preferences for convenience. The company's European expansion focuses on Germany and the Netherlands, where it operates exclusively under the brand. In , Collins Foods manages 16 stores, concentrated in urban areas, with a growth strategy targeting the addition of 40-70 new restaurants to build a stronger presence in key cities. In the , it oversees 62 stores, acquired through clusters in major urban centers to leverage high-density population areas. European operations adapt to local urban environments by prioritizing city-center locations and integrated formats suitable for dense settings. As of fiscal year 2025, Collins Foods' global footprint encompasses approximately 393 restaurants—366 and 27 —employing over 21,000 team members across and . This presence stems from historical entries into markets via strategic acquisitions, complementing its foundational base.

Restaurant portfolio and management

Collins Foods manages a portfolio of 393 quick-service restaurants (QSRs), comprising KFC and Taco Bell locations, as of the fiscal year ended April 27, 2025. This portfolio emphasizes efficient operations tailored to the fast-paced QSR model, with a focus on high-quality service, profitable expansion, and customer satisfaction across all sites. The company's management structure supports this through centralized Restaurant Support Centres in Brisbane, Amsterdam, and Düsseldorf, which coordinate operational standards and strategic initiatives to ensure consistency and excellence. Supply chain operations are handled via diversified supplier networks and leverage partnerships with to meet franchising standards for ingredients and . All suppliers undergo risk assessments for ethical sourcing, enabling centralized sourcing that minimizes costs and supports reliable delivery to restaurants globally. This approach integrates geographic spread to mitigate disruptions, aligning with the model's need for timely, high-volume ingredient supply. The company employs over 21,000 team members worldwide, with 21,688 individuals representing 91 nationalities in FY2025. Training programs delivered 258,902 courses during the year, prioritizing skills in and under the "Restaurants Done Better" mission. These initiatives include internal promotions—737 in FY2025—and diversity efforts, such as achieving 43% female representation in roles, fostering a motivated aligned with long-term retention goals. Technology integration enhances QSR performance, with digital ordering comprising 34.2% of sales in and higher rates in (62.9% in the and 66.7% in ). Investments include kiosks in 106 additional restaurants and app-based delivery systems to streamline orders and boost efficiencies. Sustainability efforts complement these advancements, diverting 23% of waste from landfills and reducing single-use plastics by 37% in , while 196 restaurants feature solar panels to lower emissions. Guided by the vision to become the "World’s Top Restaurant Operator," Collins Foods drives operational excellence through these integrated practices, emphasizing scalable strategies that prioritize profitability and environmental responsibility.

Brands

KFC

Collins Foods operates as a franchisee of for restaurants across , , and the , under long-term agreements that include a recent binding commitment signed in April 2025 to accelerate expansion in by opening 40 to 70 new outlets over the next five years. As of April 2025, the company manages a total of 366 stores globally, comprising 288 in , 16 in , and 62 in the . In , Collins Foods emphasizes drive-through formats and family-oriented bucket meals to cater to suburban and regional markets, where convenience and value drive customer traffic. The Australian operations feature a strong network of standalone and locations, with a focus on efficient service for on-the-go families. In , the strategy centers on urban expansion to tap into growing demand for quick-service in densely populated cities, building on recent acquisitions to establish a foothold in a of over 80 million consumers. Meanwhile, in the , Collins Foods pursues a dense cluster strategy, concentrating stores in high-traffic urban areas through targeted acquisitions to maximize brand visibility and operational synergies, such as shared supply chains and staffing. KFC represents the majority of Collins Foods' revenue, generating $1,466.5 million AUD in fiscal year 2025, which accounted for approximately 96.6% of the group's total revenue of $1,519.5 million AUD. Same-store sales growth in fiscal year 2025 was modest at 0.3% in , supported by menu innovations, while European markets faced headwinds with declines of 3.3% in and 2.5% in the ; however, innovations like plant-based alternatives, particularly in the Netherlands where they lead global adoption, helped mitigate softer demand and appeal to health-conscious consumers. Regional adaptations enhance KFC's appeal, with larger portion sizes and value-focused family bundles prominent in to align with local preferences for generous servings. In , localized flavors incorporate continental tastes, such as curry-inspired dips and sauces in to resonate with regional street food traditions like . Since its in 2011, Collins Foods has achieved significant growth in its portfolio, adding 125 net stores in through organic openings and strategic acquisitions that bolstered its market leadership. This expansion, including key purchases in , has positioned as the cornerstone of the company's global footprint, with 12 net additions across all regions in fiscal year 2025 alone.

Taco Bell

Collins Foods acquired the master franchise rights for in in 2018, following the opening of the brand's first store in the country in November 2017 at Annerley in , . This marked 's third attempt to establish a presence in the Australian market, with Collins Foods committing to a development agreement with to open over 50 restaurants between 2019 and 2021. By April 2025, the network had grown to 27 locations, primarily in and , focusing on urban and suburban areas to capture the growing demand for quick-service Mexican-inspired cuisine. The menu under Collins Foods emphasized affordable, Mexican-inspired items such as tacos, burritos, quesadillas, and , with adaptations to suit local preferences including value meal bundles and milder spice levels to appeal to a broader demographic. These offerings were positioned as convenient, budget-friendly options in the competitive quick-service restaurant () sector, often featuring promotions like combo deals to drive trial among families and young consumers. Operations were managed with a focus on drive-thru efficiency and digital ordering to align with dining habits, though the faced challenges in differentiating from established local Mexican chains. Despite initial expansion, Australia encountered performance hurdles, recording a 0.3% decline in same-store sales during the first half of 2025 (HY25), amid softening and intensified in the QSR market. This underperformance prompted Collins Foods to announce in April 2025 its intention to exit the business within a year, seeking to transfer the franchise license to a new operator while winding down its direct involvement. The strategic decision aimed to refocus resources on the company's core brand, particularly accelerating growth in higher-performing markets like , as failed to meet profitability expectations in 's saturated fast-food landscape dominated by rivals such as .

Former brands

Sizzler

Collins Foods acquired the brand in 1967 from its founder Del Johnson, transforming it into a prominent casual dining specializing in steaks, , and an innovative all-you-can-eat . Under Collins' stewardship, the experienced significant growth in the United States, expanding to approximately 650 locations by the , capitalizing on the era's demand for affordable family-oriented dining experiences. This period marked Sizzler's peak as a national brand, with operations centered primarily in and surrounding states before broader national rollout. In 1985, Collins introduced to the Australian market with its first restaurant in Brisbane's Annerley suburb, quickly establishing a presence that grew to dozens of outlets nationwide by the . The brand became a cultural staple for family dining, but faced gradual decline as consumer preferences shifted toward faster, more convenient quick-service restaurant () options and away from traditional buffet-style casual dining. This trend, exacerbated by the economic impacts of the , led Collins to close all remaining nine Australian locations by November 2020, citing unsustainable profitability. Collins retained oversight of Sizzler franchising in , where the brand operated over 70 outlets, predominantly in (64 locations) and (10 locations), through royalty-based agreements. In the United States, Collins sold its Sizzler operations in 2011 to a management-led investor group, including original owner Jim Collins, amid persistent financial pressures and a strategic pivot toward international opportunities. The company's full divestiture from Sizzler culminated in June 2023 with the sale of its Asia franchise rights to for SGD 20.2 million, allowing Collins to concentrate exclusively on its core brands.

Pat & Oscar's and Snag Stand

Collins Foods acquired a majority stake in , a San Diego-based casual dining chain specializing in sandwiches, salads, pizzas, and ribs, in 2000 as part of its expansion in the U.S. market. The acquisition included five high-performing locations initially, with the chain growing to 19 units under Collins' ownership, focusing on fresh, made-to-order meals in a environment. However, facing challenges in the competitive casual dining segment, including economic pressures and operational inefficiencies, Collins sold its stake to the management team in January 2009 via a led by John Kaufman and executive vice Tim Foley. In 2013, Collins Foods invested $1.85 million for a 50% equity stake in Snag Stand, an Australian quick-service restaurant concept founded in 2011 by entrepreneur Philip Blanco, emphasizing gourmet sausages with innovative toppings, sides, and street-food-inspired menus. By December 2016, Collins acquired the remaining 50% ownership and fully consolidated the business, operating six stores primarily in New South Wales and focusing on fast-casual dining in high-traffic urban areas. Despite efforts to refine the menu and branding, Snag Stand struggled to gain traction in the saturated street food and quick-service market, leading to its complete closure by the end of 2017 at a restructuring cost of $1.2 million. These ventures represented Collins Foods' attempts to diversify beyond traditional fried quick-service restaurants into healthier, non-fried casual concepts, but both were divested to allow greater focus on core franchise operations like and .

Corporate affairs

Leadership and governance

Collins Foods is led by Managing Director and Simonet, who was appointed to the role on 4 2024. Simonet brings extensive experience as a global CEO, having previously served as of the Australian Trade and Investment Commission (Austrade) and as Group CEO and Managing Director of , including leadership at Holdings. The company underwent recent leadership transitions prior to Simonet's appointment. Drew O'Malley served as Managing Director and CEO from 2020 until July 2024, when he departed for family reasons. Kevin Perkins, a and former CEO, then acted as interim CEO from July to November 2024. The is chaired by independent Robert Kaye SC and comprises a majority of independent , including Nicki Anderson, Nigel Clark, Mark Hawthorne, and Christine Holman, alongside Xavier Simonet and Kevin Perkins. The board oversees strategic direction and maintains compliance with the ASX Principles and Recommendations through established charters and policies. Key board committees include the Audit and Risk Committee, chaired by Christine Holman; the People, Culture and Nominations Committee, chaired by Nicki Anderson; the Remuneration Committee; and the Sustainability Committee, each with defined roles in oversight and decision-making. These structures support robust , including tailored to operations, such as vulnerabilities and partner . Governance practices emphasize diversity, with initiatives to champion cultural and employment diversity as outlined in the Group's . Ethical sourcing is prioritized through the Code of Conduct, which addresses modern risks and promotes responsible across franchise networks. Collins Foods' headquarters has been located in , , , since its relocation there in 2005 following acquisition by .

Financial performance

Collins Foods reported revenue of AU$1,519.5 million for the ended April 27, 2025 (FY2025), marking a 2.1% increase from FY2024, primarily driven by expansion in its KFC operations. In prior years, such as FY2018, the company achieved 13.6% revenue growth, largely attributable to strategic acquisitions that bolstered its restaurant portfolio. The company's profitability reflects strong performance in core markets, with Australian stores generating positive returns on invested capital since the 2011 . Overall same-store sales (SSS) growth for FY2025 was +0.3% using the company's methodology, with improvements in the second half amid operational enhancements. Underlying EBITDA remained stable at AU$228 million, supporting margins around 15% group-wide, bolstered by quick-service restaurant () efficiencies such as digital sales integration, which reached 30.6% of total sales in key regions. On the Australian Securities Exchange (ASX) under the ticker CKF, Collins Foods has been publicly listed since its 2011 IPO, which raised approximately AU$200 million. As of November 2025, the company's stood at approximately AU$1.3 billion, with a share price of AU$11.00. The workforce ranged from 18,773 to over 21,000 employees during FY2025, underscoring the scale of operations across its global footprint. The strategic exit from the business in , announced in April 2025, is anticipated to streamline finances by reducing underperforming assets and redirecting resources toward expansion, potentially enhancing long-term profitability. This move follows a 0.3% decline in SSS for the first half of FY2025 and aligns with a broader focus on high-return markets.

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