Collins Foods operates 272 KFC fast food outlets in Australia and 64 in Netherlands and Germany.
It has 28 Taco Bell fast food outlets in Australia, but they have been struggling, with same-store sales down 4.8 per cent.
CEO Drew O’Malley says a lag effect in inflation means profit margins will be under pressure for much of the next 12 months.
Same-store sales at KFC in Australia were up 8.8 per cent in the first seven weeks of the new financial year, higher than last year’s 5.8 per cent rise.
Collins Foods, the owner of 272 KFC fast food outlets in Australia, says energy price increases and wage rises will keep feeding high inflation for much of the next 12 months, after the group lifted menu prices by 10 per cent to 15 per cent over the past year to counter inflation.
But chief executive Drew O’Malley said KFC’s sales had accelerated last month and in the first three weeks of June, as it emphasised the value of its offerings in the quick-service restaurant segment amid an increase in cost-of-living pressures on households.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
