Collins Foods, the ASX-listed operator of hundreds of KFC outlets in Australia and Europe, will sell or close its Mexican-themed Taco Bell stores, which have struggled against the much larger Guzman y Gomez brand.

The company announced the change as part of a strategic review under new chief executive Xavier Simonet, who took the helm in November and who has since concluded that Taco Bell does not have sufficient clout or brand cut-through to justify investing more money into its expansion.