Who does not like chicken ? – Chicken has always been of the more popular foods due to it being white meat , high in protein and no health risks in comparisons to some other meats. So it would make sense if you actually think that this would be a good investment based on this general information.
COLLINS FOODS LIMITED (CKF)
But picking stocks is not as simple as that , and punters should always do their research before investing . However what we are focussing on today on is Collin foods which we have featured on our blog before as a stock with potential. Collin foods is in the fried chicken sector , more specifically KFC.
Its currently trading @ $1.77
Jim Collins is the founder of the Collins Foods Limited, a franchisee of Kentucky Fried Chicken in Southern California, accepted the franchise for KFC in Queensland in 1968 and the first restaurant opened on 16th July 1969 at Kedron in Brisbane.
Collins foods has just announced that they are entering western Australia territory and expanding and has announced that it is acquiring Competitive Foods, the franchisee of 44 KFC restaurants in Western Australia and the Northern Territory.
This is going o add to their portfolio of 125 KFC fast food outlets, mainly in Queensland with a couple in NSW, as well as 27 Sizzler restaurants across Queensland, NSW and WA.
The acquisition will give Collins foods a total of 169 KFC stores
This good news is also to be taken into consideration with the news that Collins Foods reported a 17% fall in net profit to $6.2 million for the six months to October 13, compared to the previous period. This could be attributed to Sizzler sales revenues have declined, this time by a hefty 9.1%
While the KFC store sales growth was up 1.3%, they are also increasingly losing sales to rival Dominos(ASX: DMP) and also fresh new outlets like Nandos , SALSA outlets , and also New franchisees Guzman & Gomez, Grilld Burgers and Crust Pizza owned by Retail Food Group (ASX: RFG)
We like to recommend this stock to our viewers , but as always do your own research before you invest and also have a read od what the fools have to say over here .If they BOOST their sizzler earnings and give a bit of plus to their KFC earnings as well , this could be a diamond in the rough.
COLLINS FOOD LINKS
Link to their –> CKF First Half Results Presentation (28/11/2013)
Listed directors for Collins foods as of today
Mr Russell Tate (Chairman)
Mr Kevin Perkins (Managing Director, CEO)
Mr Stephen Copulos (Non Exec. Director)
Mr Newman Manion (Non Exec. Director)
Ms Bronwyn Morris (Non Exec. Director)
For more information on Collins Foods Limited, click here.