Collins Foods (ASX: CKF) has completed a strategic review of its global operations, leading to significant changes in management and strategic direction. The review highlighted Australia as a consistently profitable market, prompting a commitment to organic growth and new restaurant openings. While maintaining its partnership with Yum! Brands, which oversees KFC and Taco Bell outlets, Collins Foods is implementing several key changes.
Significant management restructuring includes the departure of CEO for Europe, Hans Miete, and COO for KFC Australia, Helen Moore. Krystal Zugno will step into the role of COO for KFC Australia. A binding agreement with Yum! aims to accelerate growth in Germany, where Collins plans to open up to 70 new KFC restaurants over the next five years, focusing on the North Rhine-Westphalia and Baden-Württemberg regions. However, cost-of-living pressures in the Netherlands have led to a commitment to operational efficiencies and a potential impairment of its Netherlands portfolio between $25.5 million and $32.7 million in FY25.
Furthermore, Collins Foods plans to exit its Taco Bell business and is currently in discussions with Taco Bell International to transition operations to new ownership. Managing Director Xavier Simonet emphasized the company’s focus on operational excellence and providing accessible, high-quality food, particularly leveraging the KFC brand’s heritage in a challenging economic environment. Collins views Germany as its second strategic growth pillar.
