What: Shares in Collins Foods Ltd (ASX: CKF) have leapt 7% on Thursday after the group announced an expansion into New South Wales and Victoria via the $24.5 million acquisition of 13 KFC restaurants.

According to the ASX release, Collins Foods has entered into a binding agreement to acquire the restaurants located around the NSW and Victorian border.

So What: The acquisition further strengthens Collins Foods’ position as the largest KFC franchisee in Australia and sets the stage for further expansion across these two heavily populated states.

The company has provided guidance that the acquisition will be immediately earnings per share accretive with opportunities to capture synergies and improve margins.

This acquisition takes the total number of KFC restaurants owned by Collins Foods to 191 with the group now operating across its home state of Queensland as well as Western Australia, Northern Territory and now NSW and Victoria.

Now What: It may surprise some readers to learn that Collins Foods’ share price has actually outperformed Domino’s Pizza Enterprises Ltd. (ASX: DMP) over the past year with a gain of 80% compared to 76% for Domino’s.

Over the past five years however Domino’s has vastly outperformed with a gain of close to 1,000%. In contrast, Collins Foods’ share price has risen around 120%.

With Collins Foods likely to take a leading role in further consolidation of the KFC franchisee sector in NSW and Victoria, growth investors will no doubt be paying close attention as to whether or not Collins Foods can replicate Domino’s success.

Could these just released franked dividend picks turn $15,000 into over $30,000?

HUNGRY FOR GREAT STOCK TIPS? FEAST YOUR EYES ON THIS! When renowned dividend investing pros like Andrew Page issue buy alerts, it pays to listen. Because investors who followed Andrew's recommendation of Australian Pharmaceuticals in early 2015 could've doubled their money in just over a year, turning $15,000 into over $30,000 by the time he recommended they sell and lock in their profits. Chances are you won't want to miss uncovering the names of Andrew's newest share recommendation and short list of 3 dividend Best Buys Now Shares.
So click here to learn more about these potentially life-changing shares.

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool contributor Tim McArthur has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.