Collins Foods saw revenue increase 2.1 per cent to $1.52 billion in FY25, thanks to the higher sales across its KFC stores in Australia.
KFC Australia’s revenue rose 3 per cent to $1.15 billion with digital channels accounting for 34.2 per cent of total sales, thanks to increased app adoption and greater kiosk availability. Its same-store sales grew 0.3 per cent.
Collins Foods noted its brand initiatives including the return of The Slab and Tower Burger helped KFC to maintain market share in Australia.
During the financial year, the company opened 10 new restaurants and closed one in Australia, bringing its footprint to 288 nationwide.
Meanwhile, KFC Europe’s revenue declined 0.4 per cent to $312.3 million attributed to rising living costs, the Ukraine war, and the Middle East conflict leading to negative sentiment towards US brands, primarily in the Netherlands.
The company noted that 16 restaurants in the Netherlands were impaired with a non-cash impact of $35.0 million.
Same-store sales dipped 2.3 per cent in the Netherlands and fell 3.3 per cent in Germany.
Digital sales shared 62.9 per cent of sales in Netherlands and 66.7 per cent in Germany, benefitting from continued investment in kiosks and third-party delivery channel services.
Collins Foods added four new restaurants to its Netherlands portfolio in FY25, and closed one, bringing its European footprint to 78 restaurants.
“While trading conditions were subdued, particularly in the first half, the strength of the KFC brand held firm. Market share increased in both Australia and the Netherlands, underpinned by improvements in brand health, compelling marketing campaigns, product innovation, everyday value initiatives, and a heightened focus on operational excellence,” said Xavier Simonet, Managing Director and CEO of Collins Foods.
“Encouragingly, tax cuts and lower interest rates are beginning to support improvements in consumer sentiment, with same store sales improving in the second half in Australia and the Netherlands. Growing sales, deflation in key input costs in Australia, and operational efficiency gains assisted in delivering a stronger H2 performance with revenues, EBITDA and EBIT all up on the prior year.”
Taco Bell delivered revenue of $53.0 million, down 2.5 per cent, impacted by a weaker consumer environment.
The company said it aims to complete the transition of Taco Bell to new ownership within 12 months. If Collins Foods fails to find a new operator, it would explore other exit options for Taco Bell.
Despite the group’s higher revenue, statutory net profit plunged 88.5 per cent to $8.8 million in FY25, inclusive of $40.8 million in restaurant impairments and $3.2 million provision for potential wage underpayments.
“In FY26, we will be laser focused on strengthening operational performance, driving same store sales growth and margin improvement. Easing cost-of-living pressures provide a supportive backdrop for growth, while deflation in Australian input costs, particularly chicken and potatoes, and efficiency gains will assist in driving a higher margin,” said Simonet.
“We’re doubling down on growth with further investment in network expansion and modernisation in Australia, elevating the customer experience to support brand health, which is key to lifting sales. In Europe, we will balance near-term optimisation with long-term opportunity.”
“Innovation and operational excellence is expected to assist in lifting the profitability of our Netherlands portfolio while Germany, our second strategic growth pillar, provides an exciting opportunity to deliver profitable scale.”