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Collins Foods Limited (ASX:CKF)

ALERT: Price-sensitive ASX Announcement for CKF
Current share price for CKF : $7.970 -0.81 (-9.23%)+
Announcement
Release
31 Mar 2026 8:25AM
Price at Release
$8.780
Full Release
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Summary
Collins Foods Limited has announced a transition arrangement to transfer 20 out of its 27 Taco Bell restaurants in Australia to a new partnership involving an affiliate of Taco Bell and Restaurant Brands Australia Holdings. This move is part of Collins Foods' strategy to exit the Taco Bell brand in Australia to sharpen its focus on its core KFC business in Australia and Europe. The transaction includes the transfer of employees and lease liabilities to the new owners, with Collins Foods being reimbursed for net operating losses and capital expenditures incurred from April 1, 2026. The completion is expected between June and August 2026, pending regulatory approvals. The remaining seven Taco Bell locations will be closed, with lease reassignments underway. Collins Foods anticipates reversing lease liabilities of around $24 million and incurring closure costs between $1-2 million. Employment continuity is offered to team members at the transitioning restaurants.
Key Points
  • Collins Foods Limited (ASX: CKF) to transition 20 of 27 Taco Bell restaurants to an affiliated company of Taco Bell and Restaurant Brands Australia Holdings.
  • The transition is part of a strategic exit from the Taco Bell brand in Australia to focus on KFC and core markets.
  • Key transaction details include transfer of 20 restaurants with employees, nominal purchase price plus stock value, and lease liabilities assumed by new owners.
  • Collins Foods will be reimbursed for net operating losses and necessary capital expenditures from April 1, 2026, to completion.
  • Completion of the transaction is expected between June and August 2026, subject to regulatory approvals.
  • Seven remaining Taco Bell restaurants not transitioning will be closed, with lease assignments to new tenants planned.
  • Collins Foods expects to reverse lease liabilities of approximately $24.0 million and incur one-off closure costs of $1-2 million.
  • Continuity of employment will be offered to team members in transitioning restaurants.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.