Collins Foods Ltd (ASX: CKF) shares have fell 3.8% on Tuesday after reporting its financial results for the year to 29 April 2018.
Collins Foods is a large franchisee of KFC outlets in Australia, Germany and the Netherlands. It also owns the Sizzler brand and runs a single Taco Bell outlet in Queensland.
Here are some of the highlights from its report:
- Revenue up 21.7% to $771 million
- Day to day profit, or EBITDA, up 14.7% to $89.6 million (click here to learn what EBITDA means)
- Net Profit up 16% to $32.5 million
- Profit per share (EPS) down 1.4% to 28.28 cents
- Annual dividends per share maintained at 17 cents
Collins Foods recently opened its first Taco Bell in November 2017 and said that it is trading well, has had positive customer engagement and will look to grow the Taco Bell brand.
Collins raised $44.1 million by issuing additional shares to purchase 28 KFC outlets in Tasmania, South Australia and Western Australia from Yum! Brands Inc for $110.2 million during the reporting period, which is why profit went up but the profit per share went down.
Graham Maxwell, the CEO of Collins Foods, said: “We are committed to continuing our track record of successfully integrating acquired restaurants, rolling out new units and successfully increasing returns from remodelled restaurants.”
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