KFC Australia posts document $1b in full-year gross sales

KFC Australia has exceeded $1 billion in full-year gross sales for the primary time as digital orders develop, though a call to not absolutely cross on inflationary price pressures to prospects lower into its revenue margin.

Collins Meals mentioned on Tuesday income from its Australian KFC enterprise grew 10 per cent to $1.05 billion for the 12 months to April 30.

Its earnings dipped 2.5 per cent to $206.6 million as its margin shrank to 19.2 per cent.

Vital price will increase included a 5.2 per cent hike within the minimal wage, whereas elements and vitality costs additionally rose.

Managing director and CEO Drew O’Malley instructed analysts it made sense for the corporate’s long-term model well being to not utterly cross on these price hikes to prospects, as another quick-serve eating places had.

“We’ve prioritised buyer worth as our North Star on this troublesome interval,” he mentioned throughout a convention name.

“We perceive that that the buyer is below quite a lot of stress proper now, particularly with all of the rate of interest hikes that I’ve alluded to.

“Nobody takes margin extra critically than we do, however KFC’s a worth model, and we’re managing this model for the long run.”

The fried hen chain seemed to be rising market share, he mentioned, with same-store gross sales rising 5.8 per cent and e-commerce orders accounting for twenty-four.3 per cent of all gross sales, up from 16.9 per cent the prior yr.

KFC Australia, which had 272 eating places at year-end, is obtainable on all digital supply platforms following the addition of Uber Eats in the course of the monetary yr.

However Taco Bell has continued to battle with same-store gross sales dropping 4.8 per cent, on prime of 8.1 per cent fall in 2021/22.

The corporate declared a $36.7 million impairment on the enterprise, which had an working lack of $1.5 million.

“New manufacturers can take developments to take traction,” Mr O’Malley mentioned.

“We do consider there’s a place within the Australia marketplace for a value-centred QSR (quick-service restaurant) providing within the Mexican class.”

Collins Meals opened eight Taco Bell eating places over the yr and closed two. That purchased its complete rely to twenty-eight, together with 13 in Queensland, 9 in Victoria and 4 in Western Australia.

Yet another restaurant is predicted to open within the Queensland suburb of Underwood in August earlier than growth pauses to concentrate on same-store gross sales progress.

Total the corporate, which additionally has 72 KFC eating places in Europe, grew income 14.2 per cent to $1.35 billion.

It posted a internet revenue after tax from persevering with operations of $51.9 million, down 12.1 per cent from final monetary yr.

Collins declared a closing fully-franked dividend of 15 cents a share, bringing its complete dividends for the yr to 27 cents, the identical as final yr.

At 11.47am, Collins Meals shares have been up 12.7 per cent to a one-month excessive of $8.86.




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