Collins Foods sees KFC growth, while Sizzler ‘lags’
Fast food restaurant operator Collins Foods Limited (Collins Foods) has announced growth in the first quarter of the 2015 financial year for its KFC restaurants beyond what was expected, while its Sizzler restaurants continued to lag.
Collins Foods reported revenue of $124.3 million, up 28 per cent on the prior corresponding period (pcp), as well as EBITDA of $13.3 million, up 24 per cent on the previous year, EBIT of $8.5 million, up 28 per cent on the previous year, and NPAT of $4.5 million, up 21 per cent on the previous year. The prior corresponding period excludes the results of Collins Restaurants West Pty Ltd which was acquired on 7 March, 2014.
Collins Foods Limited operates 170 KFC and 26 Sizzler company owned restaurants in Australia. In addition, the Company has 61 franchised Sizzler restaurants around Asia. The Company also owns 50 per cent of Snag Stand which has five company owned outlets and one franchised outlet.
KFC growth ‘exceeds expectations’
“Trading in Collins Foods’ KFC restaurants exceeded expectations, achieving 3.0 per cent growth in same store sales across the Company’s 169 KFC restaurants,” said Kevin Perkins, Collins Foods’ Managing Director and CEO.
Mr Perkins said KFC Queensland delivered 2.6 per cent growth in same store sales, while KFC Western Australia / Northern Territory ran “well ahead of internal transformation targets” generating 4.2 per cent growth in same store sales.
Sizzler earnings slow in early stages of brand’s transformation initiative
Mr Perkins said Sizzler Australia stores’ overall earnings “continued to lag behind the prior year across this period”.
“The Board and Management are closely monitoring Sizzler’s transformation potential through its “Get Refreshed” initiative,” Mr Perkins said. “While this program is still in the early stages of implementation, the complete “Get Refreshed” package including facility modernisation in Sizzler Cleveland continues to deliver encouraging early results,” he said.
“We are generally pleased with the way overall sales and earnings have trended over the first quarter of the new financial year and the outlook is positive for Collins Foods and the Group’s ability to deliver growing shareholder returns,” Mr Perkins said.