Fast food brand operator, Collins Foods, has seen a net profit increase of 28.7 percent to $31.2 million after tax. This has followed company investments in more digital and delivery-ready restaurant models for its brands.
The group has also reported its operations revenues had increased by 14.3 percent to $696.5 million. Company debt has also been reduced, and it is now $173 million with a Net Leverage Ratio of 1.12.
Revenue for the company’s KFC Australia restaurants increased by nine percent to $522.9 million, which was supported by the opening of four new restaurants and same-store sales growth of 6.6 percent in H1.
Same-store sales growth was also driven by growth in digital and delivery operations. E-commerce channels such as delivery, websites, kiosk ordering, and mobile apps have remained a growth driver for the company in 2023, and accounted for 28.1 percent of sales. This was up 22.2 percent from the same period in 2022.
There has been a stronger emphasis on the use of electronic kiosks within restaurants, which has encouraged customers to personalise their orders, whilst remaining a popular interaction as a POS system.
Collins Foods managing director and CEO, Drew O’Malley said that the company’s performance in the first half of 2023 highlighted its underlying strength, and the resilience of the QSR sector in challenging economic conditions.
