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Cost of living pressures haven’t stopped Australians from enjoying their KFC, with same-store sales at local Collins Foods franchises up 6.6% for the first half of 2023/24.
Collins Foods announced on Tuesday that its 275 Australian KFC restaurants had revenue of $522.9 million between May 1 and October 15, an increase of 9% compared to the same period of the year. last.
Underlying earnings before interest, tax, depreciation and amortization increased 11.1 per cent to $105.5 million for its Australian KFC stores.
E-commerce channels accounted for 28.1 percent of sales, up from 22.2 percent a year ago, but labor and energy inflation continued to put pressure on costs.
The company’s other operations include 72 KFC restaurants in the Netherlands and Germany and 27 Taco Bell restaurants in Australia, where same-store sales increased 7.9 percent after a similar decline a year ago.
Cost of living pressures haven’t stopped Australians, including these two women, from enjoying their KFC
Collins Foods CEO and CEO Drew O’Malley said Taco Bell’s turnaround was encouraging, adding that collaborations with popular brands such as Vegemite helped introduce it to new customers.
Collins’ total revenues increased 14.3 percent to $695.5 million, and profits increased 16.7 percent to $109.9 million.
“The first half performance highlighted the underlying strength of our business and the resilience of the quick service restaurant (QSR) sector in challenging economic conditions,” Mr. O’Malley said.
“As the rising cost of living continues to impact consumers, it has never been more important to offer great-tasting food that offers exceptional value.”
So far, in the first six weeks of the second half of the 2023/2024 financial year, KFC same-store sales increased by 2.9 percent in Australia, 8.1 percent in the Netherlands and 8.6 percent in Germany, with Taco Bell sales increasing. 8.7 percent.
The company expects consumer pressure to remain high in the coming year, but it has taken initiatives to ease margin pressure in the near term.
KFC signage is pictured on the Gold Coast, Queensland. KFC has resisted the trend of consumers cutting back on spending due to cost of living pressures.
It opened four new KFC restaurants in Australia during the half, bringing its total to 275, with nine to 12 new restaurants expected to open in 2023/24.
Collins is the largest franchisee of KFC stores in Australia, although Yum! Brands directly operates hundreds more across the country.
The company will pay a fully franked interim dividend of 12.5c per share, up from 12c a year ago.
Collins Foods shares were the best performers on the ASX200 on Tuesday, rising 9 per cent to $11.01.