- Collins Foods operates KFC and Taco Bell restaurants in Australia and Europe.
- The share price has been a solid performer over the last five years and year over year.
- Collins Food reported strong financial results in its Half Year 2024 report.
Collins Foods managed to maintain profit stability during most of the COVID pandemic but net profit fell in FY 2023.
Collins Food Financial Performance
Source: ASX
Half Year 2024 results released on 28 November of 2023 dramatically reversed the profit picture, with a 28.7% gain in net profit, along with a 14.3% rise in revenues and a 4.2% dividend increase.
Revenues in Europe have doubled over the last three years, with the company planning to add 131 restaurants by 2031. Cost of living pressures may be benefiting Collins Foods as consumers seek alternatives to expensive restaurants. The company reported growth in both Australia and Europe in the first six weeks of the second half of FY 2024 with plans to add between five to eight restaurants in Australia and three in Europe in 2024.
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Year over year the share price is up 33.7%, but has dropped 7.3% % year to date.
Source: ASX
An analyst at Fat Prophets has a BUY recommendation on Collins Food shares, citing the company’s Half Year 2024 “double-digit revenue and EBITDA (earnings before interest taxes depreciation and amortisation), an increase in same store sales in Australia and Europe, and a lower entry point on 22 February.”
Marketscreener.com has an analyst consensus rating of OUTPERFORM, with three analysts of the twelve reporting at BUY, three at OUTPERFORM, and six at HOLD.
The Wall Street Journal has an analyst consensus rating of OVERWEIGHT, with three analysts of twelve reporting at BUY, three at OVERWEIGHT, and six at HOLD.
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