Collins Foods Ltd CKF

Morningstar Rating
A$7.94 +0.02 (0.25%)
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Company Report

Price vs Fair Value

CKF is trading at a LOCK|PbnXP premium.
Price
A$7.94
Fair Value
LOCK|.!K
Uncertainty
LOCK|v&M%
1-Star Price
LOCK|.$C@
5-Star Price
LOCK|%t
Economic Moat
LOCK|dZB
Capital Allocation
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Bulls Say, Bears Say

Bulls

The KFC brand is relatively underpenetrated in mainland Europe. There is potential for Collins Foods to both grow its existing European operations and to expand into other countries.

Bears

Organic growth potential for the core Australia business, over and above population growth, is capped by the relative maturity of the KFC brand in Australia.

Trading Information

Previous Close Price
A$7.92
Day Range
A$7.85–8.02
52-Week Range
A$7.59–12.73
Bid/Ask
A$7.82 / A$7.98
Shares Outstanding
118.44M
Market Cap
A$940.42M
Volume/Avg
203,727 / 365,013

Key Statistics

Price/Earnings (Normalized)
17.91
Price/Sales
0.59
Dividend Yield (Trailing)
3.53%
Dividend Yield (Forward)
3.53%
Dividend Payment Schedule
Jan, Aug
Total Yield
3.53%

Company Profile

Collins Foods is an operator of quick service restaurants, or QSRs. It franchises restaurant brands from US-listed Yum Brands, including KFC in Australia, Germany, and the Netherlands. Revenue and earnings are largely generated in Australia, where Collins is the largest KFC franchisee. Earnings growth is underpinned by its store network expansion, both new restaurants and acquisitions of existing sites. Competitive pricing is key to maintaining share in the QSR market, and the company has generally increased at or below consumer price index growth.
Sector
Consumer Cyclical
Industry
Restaurants
Stock Style Box
Small Core
Total Number of Employees
3,471

Competitors

Valuation

Metric
CKF
YUM
YUMC
Price/Earnings (Normalized)
17.9121.2615.00
Price/Book Value
2.22—2.64
Price/Sales
0.594.371.18
Price/Cash Flow
6.3117.497.43
Price/Earnings
CKF
YUM
YUMC

Financial Strength

Metric
CKF
YUM
YUMC
Quick Ratio
0.440.330.71
Current Ratio
0.520.590.96
Interest Coverage
2.445.27—
Quick Ratio
CKF
YUM
YUMC

Profitability

Metric
CKF
YUM
YUMC
Return on Assets (Normalized)
4.18%22.90%10.15%
Return on Equity (Normalized)
14.85%—20.02%
Return on Invested Capital (Normalized)
7.15%46.91%12.41%
Return on Assets
CKF
YUM
YUMC

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1-Day Chart
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