The Collins Foods Ltd (ASX: CKF) share price is off to the races today.
Shares in the S&P/ASX 200 Index (ASX: XJO) KFC and Taco Bell restaurant operator closed yesterday trading for $9.59. In earlier trade, shares surged to $10.79 each, up 12.5%. After some likely profit-taking, shares are trading for $10.39 apiece at the time of writing, up 8.3%.
This sees the Collins Food share price up an impressive 38.5% since this time last year.
And that doesn't include the 26 cents a share in fully franked dividends the ASX 200 fast food retailer has paid out to eligible shareholders over the year.
Here's what's spurring ASX investor interest today.
Image source: Getty Images
Collins Food share price lifts off on sales growth
The Collins Food share price is racing higher following the release of a trading update accompanying today's annual general meeting (AGM).
The trading update, covering the first 18 weeks of FY 2026 (28 April to 31 August), showed a 6.7% increase in total sales compared to the same period in FY 2025.
Management said this was driven by KFC's same-store sales growth in all of its markets.
Total KFC sales increased by 5.1% in Australia, 4.8% in the Netherlands, and 8.4% in Germany.
The company credited the improved performance to a sharper focus on execution in its restaurants and impactful product innovation.
Commenting on the strong start to the new financial year, CEO Xavier Simonet said: "Collins Foods' positive same-store sales momentum which began in the second half of FY25, has continued into the early periods of FY26, with sales growth accelerating in all markets."
What's ahead for the ASX 200 fast food company?
Looking at what could impact the Collins Food share price in the months ahead, the company reaffirmed its FY 2026 guidance. Management is targeting year-on-year underlying net profit after tax (NPAT) growth in the low to mid-teens (on a percentage basis).
The company said that its new restaurant developments remain on track. That includes a new store in Germany, which opened in mid-August under the new arrangements with Yum! Brands to accelerate development in the German market.
Chris Johnson will drive that development after being appointed as general manager Europe on a permanent basis.
Commenting on the outlook for the Collins Food share price, Simonet said:
Whilst same-store sales comparatives will become more challenging as we progress through the year, our stronger performance reflects our enhanced focus on the customer experience, and on operating disciplines, supported by successful new product innovation.
Improved sales, lifting labour productivity, reducing food wastage, disciplined cost management and deflation in some commodities are all contributing to margin expansion.
