Momentum in KFC Australia underpins
-KFC Australia leading the sales trends
-KFC Europe should return to modest growth in FY22
-
Sales trends for
KFC Australia generated 11.6% growth in like-for-like sales in the first seven weeks of the company's new financial year while KFC Europe was down -13.4%.
Wilsons assumes same-store sales trends move back towards long-term norms by the end of the first half of FY21 for KFC Australia, with a temporary margin benefit from stronger sales growth, constrained by higher costs and no price increases.
KFC Europe is expected to sustain mid-single digit declines in same-store sales by the end of the first half before returning to modest growth in FY22, and Wilsons is encouraged by the momentum building in
Morgans believes the reallocation of capital towards the much higher returning KFC Australia business is the right move in the current environment and anticipates a recent easing of restrictions in
Government stimulus is supporting a strong balance sheet and Morgans anticipates a 50% pay-out ratio will be reinstated, which reflects the better-than-forecast final dividend, retaining an Add rating and
While incorporating the robust outlook,
Earnings in the second half of FY20 beat
The company's digital delivery strategy continues to progress, currently available in 137 KFC Australia restaurants. While there were disruptions because of the pandemic restrictions in the second half that affected shopping centre and dine-in functions,
Sizzler reported a -18% decline in revenue in FY20, with three restaurants closed and a significant impact from the pandemic into the end of the year. Six Sizzler stores in
Delivery continues to provide the tailwind for the company and
Moreover, there is operating leverage available through store expansion in
FNArena is proud about its track record and past achievements: Ten Years On
All material published by
© 2020 Acquisdata Pty Ltd., source