Jarden analyst Ben Gilbert has upgraded Collins Foods’ stock following a better-than-expected first-half result for the 2026 fiscal year. The underlying net profit of $30.8 million surpassed market expectations by 12 per cent, leading to an increased full-year guidance projecting mid-to-high teens growth. The company operates KFC and Taco Bell restaurants in Australia and Europe. Collins Foods is one of the largest KFC franchisees in Australia and Europe.
Revenue reached $727 million, a 7 per cent increase year-on-year, and earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 11 per cent to $113.9 million. These figures slightly exceeded estimates, primarily driven by strong performance in KFC Australia. Revenue for KFC Australia grew by 5 per cent, with same-store sales up 2.3 per cent, while underlying EBITDA increased by 9 per cent.
KFC Europe also showed strong results, although early trading in the Netherlands indicated a slightly weaker start to the second half. The company’s Taco Bell operations have been discontinued, contributing a minor negative impact to EBITDA. Overall, the first-half results reflect positive momentum, particularly within the KFC Australia segment.
Despite the positive analyst upgrade, shares in Collins Foods experienced a dip of 2.1 per cent in morning trade on Tuesday. The stock’s performance will likely be closely watched by investors as the company navigates the second half of the fiscal year and integrates the impact of the Taco Bell exit.
