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Collins Foods hungry for expansion

AAP logoAAP 31/08/2016 Lilly Vitorovich

Collins Foods is focused on expanding its fast food restaurant operations following its recent acquisition of 13 KFC stores, a move that made it the chicken chain's largest franchisee in Australia.

Chairman Robert Kaye told shareholders at the company's annual general meeting on Thursday that the group will continue to pursue growth opportunities this year after forking out $25.5 million on the 13 KFC restaurants in NSW and Victoria in May.

As a result of the deal, Collins Foods now has 191 KFC restuarants across the country.

"The group is excited and optimistic about the opportunities that will emerge during the coming financial year and will continue to invest in the KFC business," Mr Kaye said.

Mr Kaye said the group's struggling Sizzler chain, which has recently been culled to 22 outlets, is a non-core part of the business. Previously the company has announced there will be with no further growth capital allocated to Sizzler.

Sizzler continues to deliver positive underlying earnings for the company.

Collins Foods recently acquired the remaining 50 per cent of relatively new fast food chain Snag Stand that it did not already own, and plans to expand the business.

In June, Collins Foods swung to a full year net profit of $29.1 million, compared with a $10.4 million net loss in 2014/15.

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