Collins Foods acquires 28 more KFC restaurants
Collins Food has acquired 28 Australian KFC stores from Yum! Brands.
The acquisition cost Collins Foods AUD $110.2 million, which will be paid with a $44.1 million entitlement offer and a $69.3 million debt.
Graham Maxwell, Chief Executive Officer of Collins Food, said the stores are located across Western Australia, South Australia and Tasmania.
“This acquisition provides an exciting opportunity for us to grow in Western Australia and develop new growth platforms in Tasmania and South Australia,” Maxwell said.
“The acquisition portfolio is attractive and the transaction is consistent with Collins Foods’ strategy to drive operational growth while delivering strong value for shareholders,” he said.
The acquisition means Collins Foods will own 223 KFC franchised restaurants across Australia, reinforcing the company as the country’s largest KFC franchisee.
Net profit drops
Collins Foods has also announced its financial results for its 2017 financial year which ended 30 April 2017.
Collins Food reported a net profit of AUD $28 million, a 3.9 per cent drop on its 2016 financial year results.
Australian KFC stores experienced positive same store sales but the business decided to undertake a strategic review of Snag Stand which has not improved its overall trading.
Sizzler Australia revenue declined 10.5 per cent with six restaurants closing within the financial year. Those still opened experienced sales growth of 0.4 per cent.
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