Collins Foods Posts 6.7% Sales Rise, Confirms Mid-Teens Profit Growth Target
Collins Foods has reported a robust 6.7% increase in total sales for the first 18 weeks of FY26, driven by strong same-store sales growth in Australia, the Netherlands, and Germany. The company reaffirms its optimistic profit guidance amid ongoing expansion and operational improvements.
- Total company sales up 6.7% in first 18 weeks of FY26
- KFC same-store sales growth in Australia, Netherlands, and Germany
- FY26 profit guidance targeting low to mid-teens NPAT growth reaffirmed
- New restaurant development progressing, including a new German store
- Chris Johnson appointed permanent General Manager Europe
Strong Start to FY26
Collins Foods Limited has kicked off FY26 with encouraging momentum, reporting a 6.7% increase in total company sales over the first 18 weeks ending 31 August 2025. This growth is underpinned by positive same-store sales performances across all its key markets, including Australia, the Netherlands, and Germany. Notably, KFC Germany led the charge with an 8.4% rise in total sales and a 5.8% increase in same-store sales, signaling robust consumer demand in that region.
Operational Excellence and Innovation
The company attributes this uplift to a sharper focus on restaurant execution and impactful product innovation. CEO Xavier Simonet highlighted that enhanced customer experience and disciplined operational management have been critical drivers. Improvements in labour productivity and reductions in food wastage, alongside cost management and commodity deflation, are contributing to expanding margins; an encouraging sign for profitability.
Confident Outlook and Expansion Plans
Despite acknowledging that same-store sales comparisons will become more challenging as the year progresses, Collins Foods reaffirmed its FY26 guidance. The company targets underlying net profit after tax (NPAT) growth in the low to mid-teens percentage range, reflecting confidence in sustained performance. Expansion remains a priority, with new restaurant development on track, including a recently opened store in Germany under new arrangements with Yum! Brands aimed at accelerating growth in this strategic market.
Leadership Stability in Europe
In a move to strengthen its European operations, Collins Foods has appointed Chris Johnson as General Manager Europe on a permanent basis. This leadership continuity is expected to support the company’s growth ambitions and operational execution across its European footprint.
Looking Ahead
As Collins Foods navigates the remainder of FY26, investors will be watching how the company manages the tougher sales comparatives and continues to leverage innovation and operational discipline. The early signs suggest a company well-positioned to deliver on its growth targets while expanding its presence in key international markets.
Bottom Line?
Collins Foods’ early FY26 sales surge sets a promising tone, but sustaining momentum amid tougher comparisons will be the true test.
Questions in the middle?
- How will Collins Foods maintain same-store sales growth as comparatives become more challenging?
- What impact will the new German store and Yum! Brands partnership have on European expansion?
- Can operational efficiencies and product innovation continue to drive margin expansion throughout FY26?
