Collins Foods announces Q3 results, Sizzler and KFC sales drop in Queensland
Australian listed public company Collins Foods Limited, announcing its third quarter results, has blamed “challenging” trading conditions for the company’s underperformance.
Collins Foods operates the food service retail outlets Sizzler in Australia and KFC in Queensland.
Announcing its results, Collins Foods said that, as a result of the third quarter same store sales being less than prior year by 2.4 per cent for KFC and 1.7 per cent for Sizzler, the company has revised its expectations for same store sales in the second half of 2012 to a decline on prior year of 4.0 per cent for KFC and 3.2 per cent for Sizzler.
Collins Foods’ CEO Kevin Perkins said the company’s Net Profit After Tax for FY2012 is not expected to vary materially from AU$18-20m.
Mr Perkins said that, overall, trading conditions remained “challenging” and while there was a seasonal uplift in the early part of the summer school holiday period, this weakened as the season progressed.
Mr Perkins also said that trading in metro areas remains mixed while tourism dependent regions and KFC food courts generally continue to underperform the rest of the division.
“Mining regions continue to perform well and demonstrate the strength of the brand. Perkins commented that new marketing campaigns in both KFC and Sizzler were well received but competition in the restaurant sector remains intense,” he said.