I love finding S&P/ASX 300 Index (ASX: XKO) shares that are delivering international growth because they have a much larger total addressable market to grow into.
Australia is a great country to do business in, but with less than 30 million people, the opportunity is a fraction of the size of regions like North America, Europe or Asia.
The ASX 300 share Collins Foods Ltd (ASX: CKF) is one business that's aiming to capture a piece of the huge overseas market. It certainly fits in the 'growth' bucket, in my view.
The fund manager Wilson Asset Management (WAM) is one of the experts that really like Collins Foods shares. WAM describes the business as the largest operator of KFC restaurants and a growing operator of fast-food restaurants in Europe.
Let's take a look at what makes the food business appealing.
Strong update by the ASX 300 share
WAM noted that the company recently held its annual general meeting (AGM) in September, where CEO Xavier Simonet highlighted the improvement in Australian consumer sentiment as a reason for positive sales momentum.
The fund manager also pointed out that Collins Foods has fended off attempts from rival fast food operators in the chicken category, it's "impressing… analysts given the brand's resilience after years of missed expectations."
WAM said the solid growth seen across Germany and the Netherlands also serve as a positive tailwind for the ASX 300 share going forward. The fund manager said there are expectations the CEO Simonet may look to acquisition activity to bolster the company's position.
Let's look at what the company actually said regarding sales for the first 18 weeks of FY26 to 31 August 2025.
Total company sales were up 6.7% year-over-year, with KFC same store sales growth in all markets. KFC Australia total sales were up 5.1%, Netherlands total sales increased 4.8% and Germany total sales 8.4%.
In same store sales (SSS) terms, Australian SSS rose 2.3%, the Netherlands SSS increased 1.2% and Germany SSS grew 5.8%.
The company is targeting year-over-year growth of underlying net profit after tax (NPAT) in the low to mid-teens in percentage terms.
Collins Foods said that new restaurant development remains on track, including a new store in Germany which opened in mid-August under the arrangements with Yum! Brands to accelerate development in this important market for Collins foods.
Collins Foods share price valuation
The forecast on Commsec suggests the business could generate earnings per share (EPS) of 50 cents in FY26. That puts the current valuation at under 22x FY26's forecast earnings, which I think is an attractive valuation considering the business is growing internationally.
