• Focused on profitable expansion of KFC brand in Australia and Germany
• Exited Taco Bell business to concentrate on core growth pillars
• Committed to improving profitability in the Netherlands market

Collins Foods Limited (ASX: CKF) delivered a solid financial performance in FY25, with Group revenue reaching a record $1.5 billion. The company's strategic roadmap is focused on the profitable expansion of the KFC brand in Australia and Germany, supported by consistent operational excellence across all operations. The company made the strategic decision to exit the Taco Bell business, allowing it to concentrate resources on its core growth pillars. In Australia, the KFC operations continue to be a strong engine of growth and profitability, with the company expanding its network, innovating across products and services, and improving restaurant operations. In Germany, the company plans to accelerate restaurant development, targeting 40-70 new KFC restaurants over the next five years. The company's immediate priority in the Netherlands is improving profitability, with a focus on delivering high-quality customer experiences to drive sales, support brand health, and enhance productivity. The company has also undertaken a comprehensive wage compliance review, with plans to commence remediating impacted team members shortly. Collins Foods is well-positioned to capitalize on improving market conditions, with a clear roadmap for long-term growth, a strong balance sheet, and a commitment to sustainability.

For FY26, Collins Foods reiterated its target of year-on-year Group underlying NPAT (post AASB 16) growth in the low to mid-teens (percentage basis).

The company's strong performance in the second half of FY25 has continued into the new fiscal year, with total company sales in the first 18 weeks up 6.7% on the prior corresponding period. The company remains focused on improving customer engagement to grow sales, lifting labour productivity, and managing costs in a disciplined way to deliver margin improvement.