CKF 3.87% $9.19 collins foods limited

Again we see another great quarter for KFC sales in Australia....

  1. 99 Posts.
    lightbulb Created with Sketch. 80
    Again we see another great quarter for KFC sales in Australia. Yum Brands (owner of the KFC BRand) are very bullish for future growth into 2021 and beyond, was a very informative webcast this morning, and makes me feel super positive for growth in Collins Foods KFC sales for the the upcoming 12 month.

    The great thing about the Yum Brands results are they come out every 3 months, Collins foods only reports every 6 months. Over the years I have been tracking Collins Foods, the reports always match up, so good things to come from Collins Foods.

    Australia for the full year was the best performing region for Yum Brands, no doubt this has been due to Collins Foods continuing to deliver quarter after quarter. Of the 13 regions reported by Yum Brands, only 2 were positive, Australia and United States, Australia 5% and United States 4%.

    https://hotcopper.com.au/data/attachments/2874/2874704-574939400395b61fbd6db6dfab40a26d.jpg
    The above lets us know based on previous quarters that KFC sales in Australia are continuing to grow, so no surprises the next time Collins Foods reports as we now have the figures from the horse's mouth. We will see an increase in sales and revenue from Collins Foods, and due to the stellar performance we will continue to see the dividend increase for Collins Foods.

    Some positives from Collins Foods over other companies is that they are both a Growth and Income stock. Only a handful of companies on the ASX have had increasing dividends over the past 5 years, plus Collins Foods share price has nearly doubled over that 5 year period. I will happily take an annual rate of close to 20%.

    When you compare from a growth performance, only WES or WOW get close. CBA and WBC in particular, have terrible growth compared to Collins Foods.

    https://hotcopper.com.au/data/attachments/2874/2874796-b4d2603c68fcb671f4ac458a86d62d54.jpg

    Now when you look at income, you would have been well rewarded if you had been with Collins Foods, as dividends have been increasing year after year for the past 8 years. We all know how the banks have been trying to keep their dividend going, but we all saw the big drops in the past 12 months.

    Collins Foods Dividends

    https://hotcopper.com.au/data/attachments/2874/2874819-25b013f1e144d42595967613deb25345.jpg
    Westpac Dividends

    https://hotcopper.com.au/data/attachments/2874/2874826-308c7b1466a9b3585a0fb6384ca229fc.jpg

    Woolworths Dividends

    https://hotcopper.com.au/data/attachments/2874/2874833-3dd552020fdbcc3b6ad05b5289595b5f.jpg
    Wesfarmers Dividends

    https://hotcopper.com.au/data/attachments/2874/2874844-16e5305d15199d93728dc113130438fb.jpg

    If I was looking for a standout investment in an ASX 200 company that is both a Growth Stock and an Income Stock, it is pretty simple based on the above information that I would be picking Collins Foods.

    Competition to Collins Foods

    Honestly, who else in Australia does fried chicken? No one other than the odd local mum and pop store. This is why you see continue growth in Collins Foods sales. Collins Foods makes the bulk and I mean bulk of its money from KFC.

    Taco Bell is only going to continue to grow and will over the next few years start to be the cherry on the top of the Collins Foods results, adding further growth and income to its bottom line.

    https://hotcopper.com.au/data/attachments/2874/2874905-49598cd1ed7ba437ed85df8b737e2fef.jpg
    Whether you are buying for growth of buying for income, Collins Foods is a buy.

    KFC anyone?
 
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