This morning Kentucky Fried Chicken merchant and franchisor Collins Foods Limited (ASX: CKF) reported an underlying net profit of $45 million on revenue of $901.2 million for its financial year ending 28 April 2019. The adjusted profit and revenue were up 15.7% and 16.9% respectively.
For the financial year the group delivered same store sales growth of 3.7% in Australia, versus 1.8% in the prior year and a same store sales fall of 3.7% in Europe reflecting lower-than-expected sales from new products.
"Over the past 12 months we have consolidated our position as the largest KFC operator in Australia, with initiatives around digital and delivery expected to drive further growth. In Europe, we are refining our KFC offering with a renewed focus on value to drive transactions," commented Collins Foods' CEO Graham Maxwell.
It will pay a final fully franked dividend of 10.5 cents per share, which is up 16.7% on the prior corresponding period, with total full year dividends up 15% to 19.5 cents per share. That puts the stock on a yield of 2.5% plus franking credits based on a share price of $7.73.
Net debt fell to $212.5 million from $227.2 million on a net leverage ratio of 1.87x full year underlying EBITDA of $113.7 million.
In FY 2020 the group aims to build 10 new restaurants in Australia, refurbish existing restaurants, implement new menus and update digital initiatives to grow sales. Europe will also see a greater range of "value products" to hopefully improve sales, while other innovations will even include the trialing of table service.
