Brisbane operator sells 20 fast food outlets as it backs the Colonel
The Queensland operator of Taco Bell in Australia is sharpening its focus on a finger lickin’ good expansion into Europe.
Collins Foods today announced it would sell 20 of the 27 Taco Bell restaurants it currently operates to an affiliated company of YUM! Brands (the Taco Bell brand owner) and Restaurant Brands Australia.
It is part of the Brisbane-based company’s renewed focus on its other fast food brand, KFC, which is rapidly expanding in Europe, particularly in Germany.
The company told shareholders today it entered into a legally binding arrangement under which YUM and RBA would operate the Taco Bell business going forward.
This deal was expected to see employees working for the new owners, while the purchase price is stock-based and will see the new owners assume the lease liabilities of the 20 restaurants.
However, the remaining seven restaurants will be closed, and Collins Foods will cop a $1.2 million bottom line hit as a result.
“Collins Foods is pleased to announce the transition of 20 Taco Bell restaurants to the brand owner, Taco Bell, and its local partner, subject to completion of the proposed transaction,” Collins Foods managing director and CEO Xavier Simonet said.
“This will enable Collins Foods to focus on our core KFC business in Australia and Europe, including accelerating profitable development in Germany.”
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Collins Foods recently announced it was expanding its footprint in Germany and the Netherlands.
It acquired eight KFC restaurants in Germany for $50 million earlier this month, and also expanded a corporate franchise agreement for the Netherlands, signed with YUM! Brands.
In 2025, Collins Foods’ annual revenue was up 2.1 per cent from the previous year at $1.5 billion, and net operating cash flow was up $5.1 million to $181.4 million.
Shares in Collins Foods are down 2.62 per cent in morning trade.
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