Collins Foods (CKF) H2 2026 earnings summary

Executive summary

• Achieved record revenue of $1,592.6 million (AUD 1.59 billion), up 8.6% year-over-year, and record underlying NPAT of $61.4 million, up 13%.

• Statutory NPAT from continuing operations rose 280.5% to $47.1 million, reflecting non-trading items, impairment charges, wage underpayment provisions, and class action settlement costs.

• Successfully exited Taco Bell, transferring 20 restaurants and closing 7, incurring $1.7 million in one-off closing costs, to focus on KFC as the core growth engine.

• Strong operational execution and brand innovation drove growth in Australia and Europe, with improved profitability in the Netherlands and a growth pathway enabled in Germany.

• Strong operating cash flows of $150.1 million enabled continued investment in restaurant networks and technology.

Financial highlights

• Underlying EBITDA increased 6.3% to $244.5 million; underlying EBIT up 10.1% to $130.7 million.

• Net operating cash flow was $150.1 million; cash conversion at 94%.

• Net debt reduced to $119.6 million, with net leverage ratio down to 0.77.

• Fully franked final dividend of 15.0 cps declared, total FY26 dividend 28.0 cps, up from 26.0 cps in FY25.

• Return on equity increased 220 bps to 14.5%.

Outlook and guidance

• FY27 capital expenditure expected between $80 million and $100 million, focused on Kwench by KFC rollout, new restaurants, and asset modernisation.

• Plans to build 7–10 new restaurants in Australia and around 7 in Germany, with strengthened development pipelines.

• KWENCH by KFC rollout and late-night trading to drive incremental sales.

• No formal earnings guidance provided for FY27.

• Cost environment expected to remain stable; commodity inflation flat to modest in Australia, deflation in Europe; labour inflation remains elevated.