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Collins Foods share price up on 17% revenue increase in FY19

The Collins Foods Ltd (ASX: CKF) share price has risen today on the back of the company releasing its FY19 Annual Report to the market this morning. CKF shares closed last week trading at $8.60, but opened this morning at $8.75 and are now trading at $8.80, a rise of 2.44%.

Here is a summary of what Collins reported for FY19:

  • Revenue at $901.2 million – a rise of 16.9% year-on-year (YoY)
  • Underlying EBITDA at $113.7 million – a rise of 20.3% YoY
  • Net profits after tax at $45 million – increase of 15.7% YoY
  • Net operating cashflow at $97.5 million – up 30.9% YoY
  • Total dividend for FY19 at 19.5 cents per share (fully franked) – increase of 14.7% YoY
  • Earnings per share at 33.57 cents – increase of 18.7%

Collins has four primary divisions – KFC Australia, KFC Europe, Sizzler and Taco Bell. Here are each division’s result highlights.

KFC Australia

  • Same-store sales growth of 3.7%
  • Increase of restaurants by 5 to 231
  • revenue growth of 15.8%
  • Underlying EBITDA growth of 20.9%

KFC Europe

  • Same-store sales growth of (-3.7%)
  • Increase of restaurants by 4 to 37
  • Revenue increased 35.2%

Sizzler

  • Australian restaurants decreased by 2, leaving total number of Australian restaurants at 12
  • Sizzler Australia revenue down by 8%
  • Royalty revenue growth of 12.2% for Sizzler Asia
  • Increase of Asian restaurants by 5 to 77
  • Total revenue for Sizzler increased by 4.35%

Taco Bell

  • Plans to add an additional 10 Taco Bell stores to the existing 4 by the end of FY20 (in Australia)

The company’s primary focus remains “driving growth in the core KFC Australia business.” It states that a key priority in FY20 is “the further expansion of the delivery network across Australia, while also continuing to strengthen operational systems and testing new digital initiatives.”

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods Limited. 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 Scott Phillips.

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