Collins Foods Ltd (ASX: CKF) shares are having another strong session on Wednesday.
After rocketing higher on Tuesday, the KFC restaurant operator's shares are up a further 11% to $9.48.
This means its shares are now up 31% since the close of play on Monday.
Can its shares keep rising? Let's see what analysts at Macquarie Group Ltd (ASX: MQG) are saying about this high-flyer.
What is the broker saying about this stock?
Macquarie notes that the company has impressed this week with the release of its full year results for FY 2025. It said:
There have been sequential improvements in sales growth across CKF's key geographies as consumer sentiment improves and the group executes on strategic initiatives. In Australia and Germany, comp sales have turned positive in FY26TD, while in the Netherlands, sales are down 0.2%. With more rate cuts to come domestically, and cost deflation in key categories (chicken and potatoes), we see opportunity for EBITDA margin expansion in the KFC Australia business (MRE FY26E = +25bps y-y, to 19.5%).
In addition, Macquarie spoke very positively about the quick service restaurant operator's opportunity in the Germany market. It adds:
As flagged in Apr-25, Germany is a key network expansion opportunity for CKF, with management targeting 40-70 new stores over the next five years (MRE = 58 net new by FY30). The market is under-penetrated, with store density and absolute store count well below key QSR competitors in Germany, and KFC in Australia. Management is open to acquisitions, which would accelerate its ability to build scale in the market and drive operating leverage.
Can Collins Foods shares keep rising?
Unfortunately, the broker thinks that Collins Foods shares have now peaked.
This morning, the broker has retained its neutral rating on them with an improved price target of $8.40.
This is around 11% below where its shares are currently trading. The broker said:
Retain Neutral. Positive momentum in the business, with outlook improving, particularly in key Australia market. Germany also provides significant opportunity. However, strong result update reflected in share price reaction.
Though, it is worth noting that other brokers are more positive. For example, Citi has put a buy rating and $10.13 price target on Collins Foods shares this morning and Morgans has an accumulate and $10.10 price target on them. This suggests that upside of 6.5% is possible between now and this time next year.
