Strong growth for KFC and Taco Bell
Collins Foods, which operates KFC and Taco Bell, has reported ‘robust growth’ in Australian sales and earnings in the year ended 1 May 2022, underpinned by a rebound in European performance.
KFC’s revenue was up 6.1 per cent to $955.5 million.
“KFC Australia managed to deliver positive same store sales growth for the full year, despite cycling unprecedented growth in the prior year,” said Managing Director & CEO, Drew O’Malley. “The KFC brand has never been stronger in Australia, and metrics around quality, value, and purchase intent are at record levels, particularly important in times like these. At the same time, we continue to amplify our strengths in convenience with further growth in digital, delivery and innovation, including the introduction of drone delivery and, more recently, Uber Eats.”
KFC Europe had an impressive year of recovery, with same store sales growth and margins above pre-COVID FY19 levels.
“We cemented our position in the Netherlands with acquisitions taking us to 55 per cent of the franchisee market and the commencement of the Netherlands Corporate Franchise Agreement,” O’Malley said. “We are already seeing the benefits of effective control with improved marketing campaigns and an expanding development pipeline, as we build toward scale in this market.”
Taco Bell’s revenue rose 27.5 per cent to $35.8 million, reflecting the addition of four new restaurants. The store rollout remains focused on tightly clustered locations in South-East Queensland, greater Melbourne and Perth. An additional three sites were opened post year end, despite COVID-related building delays in Melbourne, taking total store count to 23.
“Taco Bell returned to positive same store sales growth in Q4 FY22,” O’Malley said. “We have been making additional investments in media to support core brand positioning around taste and value. We have also seen new store openings perform ahead of expectations, providing confidence in the brand’s potential as we look to accelerate the pace of development.”
32 new restaurants
A total of 32 restaurants were added across the group in FY22, including 17 openings.
“This significant reinvestment in the business was funded out of strong operating cash flow, enabling continued healthy dividends and a further strengthening of our balance sheet,” O’Malley said. “As such, we remain well capitalised to pursue our long-term growth agenda, while navigating near term inflationary headwinds.”