• Transition 20 of 27 Taco Bell restaurants to Taco Bell and Restaurant Brands Australia
• Allows Collins Foods to focus on core KFC business in Australia and Europe
• Remaining 7 Taco Bell restaurants to be closed

Collins Foods Limited (ASX: CKF) has entered into a legally binding conditional arrangement to transition 20 of the 27 Taco Bell restaurants currently operated by the company to an affiliated company of Taco Bell (part of YUM! Brands, Inc.) and Restaurant Brands Australia Holdings Pty Limited. The new owners will operate the Taco Bell business going forward under a new partnership arrangement. This represents an important step in Collins Foods' previously communicated strategy to exit Taco Bell in Australia, allowing the company to sharpen its focus on its core KFC brand and key markets in Australia and Europe, particularly Germany. The key terms of the proposed acquisition include the transfer of 20 Taco Bell restaurants, including employees who accept offers of employment from the new owners, with Collins Foods being paid for any net operating losses and necessary capital expenditure incurred for the 20 restaurants for the period from 1 April 2026 to completion, subject to certain conditions. The remaining 7 Taco Bell restaurants that are not transitioning to the new partnership arrangement will be closed in the coming weeks, with Collins Foods working to assign the leases for these sites to new tenants. The company expects to incur one-off costs of approximately $1-2 million in relation to the closure of the 7 remaining restaurants and other transaction costs.