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Stock of the day

Collins Foods

Collins Foods makes strategic moves in Europe, acquiring new KFC restaurants in Germany and Bavaria.

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(AI video summary)

This video was created on 12 March 2026 for IG audiences by ausbiz.

ASX code: CKF

Collins Foods' strategic expansion in Europe

Collins Foods is expanding its European presence by acquiring eight KFC restaurants in Germany and Bavaria, aiming for long-term growth. The company has also extended its franchise agreement with Yum! Brands in the Netherlands until 2029. 

Market analysis and share price performance

The expansion with new KFC outlets in Bavaria is bolstering the share price. Collins Foods reported a 5.1% increase in same-store sales over 14 weeks, seen as a positive sign. Despite recent gains, some analysts believe Collins Foods' 7% share price rise may have hit a near-term ceiling around $11. The stock rebounded from a low of $9, but further movement may face market headwinds.

Investment outlook

Collins Foods is deemed stronger than Domino's, especially in international markets. While geopolitical tensions and inflation could impact margins, buying opportunities might arise on price dips, with broker targets of $12.85.

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