Brisbane-based Collins Foods (ASX:CKF) has signaled a new chapter in its international growth strategy, announcing an acceleration of its presence in the European market.
The KFC retail giant confirmed it has entered into a binding asset purchase agreement to acquire eight KFC restaurants in the wealthy German state of Bavaria.
The move, centred around Munich, is set to increase the company’s German portfolio by nearly 50% in the short term, providing an immediate boost to scale and operational margins.
Collins Foods has expanded its German development agreements, now targeting the establishment of 45 to 90 new restaurants over the next four years.
Managing Director & CEO Xavier Simonet highlighted that the focus will remain on Germany’s most populous and prosperous regions, including North Rhine-Westphalia and Baden-Württemberg.
The areas, alongside Bavaria, represent over half of Germany’s population, offering a "compelling opportunity" to challenge dominant competitors like McDonald's.
By signing a refocused corporate franchise agreement with Yum! Brands, Collins Foods aims to sharpen its operational performance and improve profitability within the Dutch market.
At the time of reporting, Collins Foods' share price was $10.00.