Collins Foods

(AI video summary)

This video was created on 2 December 2025 for IG audiences by ausbiz.

ASX code: CKF

Collins Foods delivers strong half-year results amid market uncertainty

Collins Foods, a major player in the fast-food sector and operator of Kentucky Fried Chicken (KFC) outlets in Australia, has reported a robust half-year performance, defying broader market challenges. The company posted a 13% rise in net profit, reaching $27 million, and announced an interim dividend of $0.13 per share. Revenue from its flagship KFC brand grew by 5%, reinforcing its position in the quick-service restaurant market.

Guidance upgrade

The company lifted its outlook, forecasting underlying earnings before interest, tax, depreciation and amortisation (EBITDA) growth in the mid-to-high teens for financial year (FY) 2026. This contrasts with broader market weakness, where many firms have missed expectations.

Despite the upgrade, the share price fell about 1%, which analysts attribute to profit taking after a strong recovery rally. The stock is not considered cheap and has a history of cyclical performance, with long periods of stagnation between rallies.

Investment outlook

Collins Foods’ strong half-year results and upgraded guidance offer a bright spot in an otherwise cautious market. However, with shares already pricing in much of the optimism, analysts suggest that holding the stock is the prudent move for now. Investors should watch for further updates and remain mindful of the company’s historical cycles.