Trading update
CFE Investments Ltd, a subsidiary of Collins Foods, has entered into a binding agreement with subsidiaries of Yum! Brands Inc ("Yum!") to acquire 16 KFC restaurants located in the Netherlands (the "Netherlands Acquisition") Purchase price of €62.3 million Separate agreement has been entered into which governs the roll-out of more than 20 new KFC restaurants by Collins Foods in the Netherlands by 31 December 2021, including six by 31 December 2018 ("Development Agreement")
The acquisition is expected to be mid single digit EPS accretive for Collins Foods shareholders in the first full financial year of ownership (i.e. FY2019), inclusive of expected new restaurant builds over this period Pro forma net leverage ratio will be 1.9x
Unaudited financial results for the 20 weeks to 5 March 2017 reflect continued underlying EBITDA growth revenue of A$247.2 million, up 12.3%, and underlying EBITDA of A$30.7 million, up 5.4%
European
CKF Price at posting:
$5.88 Sentiment: Buy Disclosure: Held
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