Collins Foods Shares Soar 20% on Strong KFC Sales and FY26 Outlook

Shares of Collins Foods Ltd (ASX:CKF) surged over 20% on Tuesday, hitting A$9.15—their highest level since August 2024—after the company reported strong full-year earnings and a positive outlook for FY26. The fast-food operator, which runs KFC and Taco Bell franchises, saw a sharp rise in investor confidence driven by robust sales momentum in its core KFC Australia business.

For the fiscal year ended April 27, revenue from continuing operations rose 2.1% to a record A$1.52 billion (US$970 million). While underlying EBITDA remained flat at A$228.5 million, underlying net profit after tax fell 14.8% to A$51.1 million, primarily due to increased depreciation and cost pressures during the first half.

CEO Xavier Simonet noted improving same-store sales growth in both Australia and the Netherlands, supported by easing cost inflation and successful brand campaigns. In early FY26 trading, KFC Australia sales rose 4.9%, and the company expects group net profit to grow in the low to mid-teens percentage range.

As of 01:00 GMT, the stock remained up 17.5% at A$8.57. The board declared a fully franked final dividend of 15.0 cents per share, bringing the full-year payout to 26.0 cents.

In a strategic move, Collins Foods reaffirmed its plan to exit the underperforming Taco Bell business within the next year, redirecting focus toward expanding its KFC operations in Germany.

With steady KFC performance, a clear growth strategy, and renewed investor confidence, Collins Foods appears well-positioned for continued momentum in the upcoming fiscal year.