Shares in Collins Foods, which operates KFC and Taco Bell, tanked after it warned that sales were slowing and its profit margin would fall this financial year under the strain of rising staff, energy and store costs.
Collins Foods said sales increased just 1.1 per cent in the first 16 weeks of the new financial year. Trading was up 2.5 per cent at KFC outlets in Australia but fell 1.8 per cent in Europe. This was below consensus forecasts for 3.3 per cent growth in the first half.
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Carrie LaFrenz is a senior journalist covering retail/consumer goods. She previously covered healthcare/biotech. Carrie has won multiple awards for her journalism including financial journalist of the year from The National Press Club. Connect with Carrie on Twitter. Email Carrie at carrie.lafrenz@afr.com
