Collins Foods is victorious in terms of the financial results for the first half of their fiscal year 2026, in addition to being able to show strong consumer resilience despite the overall difficulty of the consumer environment.
The revenues of the group went up by 6.6 per cent to reach a figure of $750.3 million, and this was aided by the growth which took place both in Australia and Europe. The management of the firm has taken the performance to be a result of the tighter operational execution, and the new products, the cost management that was able to keep the pressure at bay during the significant cost-of-living crisis that hit the main markets.
The Collins Foods HY26 results also showed a significant increase in profits. Underlying EBITDA gained 11.0% to $113.9 million, while underlying EBIT rose 20.0% to $63.0 million. Underlying NPAT was up 29.5% yielding $30.8 million.
The statutory NPAT grew 12.7% and came to $27.2 million. The strong cash flows amounting to $69.1 million helped support investing in technology and the restaurant expansion project. The group also managed to lower its net debt to $138.9 million, which resulted in a decrease in its net leverage ratio to 0.89. An interim dividend of 13.0 cps was declared.
Collins Foods posts strong HY26 results amid challenges.
How Did KFC Australia Support Collins Food’s Revenue Growth HY26?
KFC Australia was the principal power behind Collins Food’s HY26 results. Revenue went up by 5.0% and reached a total of $563.8 million, and this was thanks to the same-store sales growth of 2.3%.
Underlying EBITDA went up by 9.4% to $111.8 million while margins were raised to 19.8%. Underlying EBIT increased by 11.6% to $75.5 million. The division was very successful internationally, with the digital channels comprising 41.7% of the sales, which is an increase from 33.7% at the same time last year.
The new product development cycle, which included the introduction of Habanero, Zinger Kebab, and Sweet Tokyo, was one of the contributors that enhanced the operational performance of the company. The company opened eight new restaurants in 2025, bringing its total number of locations to 292.
The Company is confident of completing 37 renovations in the current financial year, including four supercharged renovations, which are equipped with advanced technology like kiosk installations. The kiosk rollout is taking place at such a pace that only 87 sites are left to get the kiosks.
Why Did European Operations Strengthen In Collins Foods HY26 Results?
KFC Europe had a very good and impactful year in terms of both revenue and profit. The revenue went up by 14.6% amounting to $162.9 million, and the same-store sales in both the Netherlands and Germany became positive again.
Underlying EBITDA showed an increase of 19.6% and reached $20.4 million, while underlying EBIT more than doubled, 142.3% to $6.9 million. Digital channels also did very well, accounting for 66.9% of sales in the Netherlands and 72.7% in Germany.
Brand awareness in the Netherlands went up to 72.0%, which was achieved through better in-restaurant execution. Menu innovation like Kipsalon and Lava sauce played a big role in customer engagement. Collins Foods ended HY26 with 79 restaurants in Europe. Portfolio optimisation started in the Netherlands, while the German expansion continues, the pipeline for 2026 is already strong.
KFC Europe delivered strong revenue and regained positive sales.
Collins Foods Maintains Strong Cash Position And Dividend Commitment
Cash flow from operations reached $69.1 million, which is a reinforcement of the Company’s ability to grow through funding. The investment outflows of $26.9 million were a reflection of the continued expansion of the network and digital upgrades.
The total outflows for financing amounted to $59.9 million, of which $17.9 million was for debt repayments. An interim dividend of 13.0 cps is scheduled to be paid on 5 January 2026.
Remediation Progress And Workforce Commitments Continue
Collins Foods continued its wage remediation efforts and upped its provision to $10.5 million. Communications with the affected employees started in November, and the Company confirmed the payments were being made.
During the process, the Company assured that it would be in full cooperation with the Fair Work Ombudsman.
Collins Foods advanced wage remediation and increased its provision.
What Is The Outlook For Collins Food’s Half-Year 2026 Results?
The very first trading in the second half of FY26 showed a constant growing trend. Again, KFC Australia was the leader with its total sales growing by 5.3%, next was the Netherlands with 5.6% and last was Germany, whose sales increased by 7.8%.
However, the same-store sales had a more moderate increase of 3.6% in Australia and 2.3% in Germany. Thus, Collins Foods had already set a target for the underlying NPAT growth in the mid-teens to high-teens range for FY26.
The Company will persist with its investments in the areas of network expansion, digital modernisation, and new restaurant opportunities in the North Rhine-Westphalia and Baden-Württemberg regions of Germany, especially.
Also Read: Australia Welcomes KFC’s First Secret Vending Machine Serving Sweet Tokyo Hot & Crispy Chicken
FAQs
- What was the main reason for Collins Food’s revenue growth in HY26?
Record results were driven by the excellent performance of KFC in Australia and Europe.
- How much revenue did Collins Foods have for HY26?
The Company’s revenue was $750.3 million.
- What is the forecast of Collins Foods for FY26?
The Company expects to achieve a mid-to-high-teens NPAT growth for FY26.
- How many new KFC Australia outlets were there in 2025?
Eight new restaurants have been opened, with more to come.
