Collins Foods Ltd (ASX: CKF) shares are on the move on Tuesday morning.
At the time of writing, the ASX 200 share is up 8% to $9.03.
This follows the release of the KFC-focused quick service restaurant operator's FY 2026 results.
Image source: Getty Images
ASX 200 share jumps on results
For the 53 weeks ended 3 May, Collins Foods reported an 8.6% increase in revenue to a record of $1,592.6 million.
This was driven by growth in Australia and Europe, which reflects an enhanced focus on operational execution and new product launches. This helped offset persistent cost of living pressures in both markets.
On the bottom line, statutory net profit after tax increased 280.5% to $47.1 million. However, this reflects a large number of one-offs. On an underlying basis, the ASX 200 share delivered a 13% increase in net profit after tax to $61.4 million.
This allowed the Collins Foods board to declare a fully franked final dividend of 15 cents per share, which brings its total dividends to 28 cents per share in FY 2026. This is up 7.7% on FY 2025's payout.
Management commentary
Commenting on the company's FY 2026 results, the ASX 200 share's managing director and CEO, Xavier Simonet, said:
In FY26, we set clear priorities: driving profitable same store sales growth and network expansion in Australia and Germany, improving profitability in the Netherlands, transitioning out of Taco Bell, and strengthening restaurant execution to deliver a better customer experience. We delivered strong performance against all these priorities despite an uncertain macro and geopolitical environment. The record results are a credit to the effort, creativity and passion of our restaurant and support centre teams.
KFC's brand leadership position continued, underpinned by product innovation, strong marketing execution, expanded usage occasions, and improved execution. We announced the acquisition of 8 restaurants in Munich which coincided with us signing new development agreements with Yum! Brands. We restructured and extended the Corporate Franchise Agreement in the Netherlands which will allow us to focus on running great restaurants profitably. We also announced a negotiated exit from Taco Bell.
Trading update
Also giving Collins Foods shares a boost today was a positive trading update for the first eight weeks of FY 2027.
During the period, Collins Foods' KFC total sales grew 6.7% in Australia and 6.4% in Germany (including the impact of acquired restaurants in Bavaria for 4 weeks). However, sales in the Netherlands were 5.2% lower.
Speaking about the year ahead, Simonet said:
Our record FY26 performance was an outstanding achievement. In FY27, we will again be laser focused on driving operational performance, sales and margins. We are excited about the strategic growth potential of our business, in particular in Australia and Germany and will invest in a disciplined way in growth opportunities to create shareholder value.
Underpinning this, we continue to strengthen our partnership with Yum! Brands regionally and locally to deliver mutually beneficial outcomes. Finally, the cash-generative nature of our business and our strong balance sheet provide us with plenty of capacity to fund organic and inorganic future growth opportunities.
