Join our daily newsletter At The Bell to receive exclusive market insights
- KFC and Taco Bell franchisee owner Collins Foods (CKF) has updated the market on how its fast-food joints have performed in the last five weeks
- Despite the difficulties faced during this period, Collins says KFC Australia has continued to improve its sales trends
- Over the past five weeks, same-store sales (SSS) at KFC were down 0.9 per cent — but Collins says this is only a marginal decline when compared to the prior year
- However, it’s the food court KFCs that are struggling, due to the minimal foot track in shopping centres
- Excluding the food court, the remainder of the stores — which are mainly drive-thru — have traded positively, delivering with a four per cent SSS growth over the prior year
- In Germany, SSS growth was down 28 per cent, although Collins says sales have picked back up in the past two weeks
- And in the Netherlands, KFC restaurants SSS dropped a substantial 40 per cent over the past five weeks
- After an initial decline in sales, Taco Bell has had a positive recovery over the last few weeks, where sales have returned to pre-COVID levels
- On the market today, Collins is down 0.26 per cent is and selling shares for $7.66 each
KFC and Taco Bell franchisee owner Collins Foods (CKF) has updated the market on how its fast-food joints have performed in the last five weeks.
Since the start of COVID-19, Collins has had to implement measures to maximise sales and tightly manage costs giving the challenging operating conditions. They’ve also had to manage the health and safety of staff and customers by closing the dine-in lounges in KFC lobbies and implementing social distancing in stores.
KFC Australia
Despite the difficulties faced during this period, Collins says KFC Australia has continued to improve its sales trends. Over the past five weeks, same-store sales (SSS) at KFC were down 0.9 per cent — but Collins says this is only a marginal decline when compared to the prior year.
The KFC food courts have been the hardest hit, due to the decline in foot traffic at shopping centres.
Excluding the food court, the remainder of the stores — mainly drive-thru — have traded positively, with a four per cent SSS growth over the prior year.
Germany
In Germany, the companies KFC restaurants continue to trade through take-away, drive-thru and delivery channels.
However, SSS over the past five weeks was down 28 per cent. But Collins says this is actually an improvement over the initial sales drop and says sales have picked up over the past two weeks.
Netherlands
In the Netherlands, KFC restaurants SSS dropped a substantial 40 per cent over the past five weeks. Netherlands KFC has been struggling in the number of in-line restaurants in city centres.
Taco Bell and Sizzler
After an initial decline in sales, Taco Bell has had a positive recovery over the last few weeks and has returned to pre-COVID levels.
Sizzler Australia has seen a significant drop in sales due to the dine-in restrictions and has now implemented a take-away and home delivery services.
Managing Director & CEO Graham Maxwell said that we are living in extraordinary and unprecedented times, with an environment that is challenging and still unpredictable.
“Pleasingly, we have seen an improvement in sales in recent weeks and talk is now more focused on easing than increasing the level of Government restrictions in both Europe and Australia,” he said.
“Our business continues to show strong resilience despite the very challenging operating environment and is well-positioned to manage through the recovery period of the respective markets we operate in,” he added.
Collins maintains that its balance sheet remains strong and the company has significant headroom in its current debt facilities.
On the market today, Collins is down 0.26 per cent is and selling shares for $7.66 each at 2:50 pm AEST.
