Collins Foods Transfers 20 Taco Bell Outlets to Yum Brands

COLLINS FOODS LTD has announced a strategic move to transfer 20 of its 27 Taco Bell restaurants in Australia to an affiliate of Yum! Brands, Inc. and Restaurant Brands International Inc.. This transaction marks a significant step toward the company's full exit from the loss-making Taco Bell business. The remaining seven locations are scheduled to be closed in the coming weeks. This divestment is part of a broader strategy to refocus on the company’s core KFC franchise operations, which span both the Australian market and Europe, with a particular emphasis on Germany. The deal involves a nominal purchase price, with the new owners assuming all lease liabilities for the 20 restaurants upon completion. Yum! Brands, Inc. owns several major fast-food chains, including KFC and Pizza Hut, while Restaurant Brands International Inc., which was previously listed in New Zealand, was acquired by interests in Mexico last year. Michael Toner, an analyst at RBC Capital Markets, characterized the transfer as a positive development for the company. > On balance, we view the transfer of the 20 TB stores for a nominal amount as a slight positive. Regarding the closure of the remaining sites, Toner noted the competitive nature of the real estate market for quick-service restaurants. > For the remaining 7 locations, we note heightened competition between QSR operators to secure sites, and are optimistic that CKF is able to dispose of these leases relatively cleanly. Collins Foods has been systematically reducing its exposure to Taco Bell to double down on KFC, its primary source of revenue. Last year, the company revealed plans to open between 40 and 70 new KFC outlets in the German market over a five-year period, noting that the brand remains under-penetrated in that region. Financial results underscore the shift in focus. KFC Australia reported interim revenue of A$563.8 million, whereas Taco Bell experienced a nearly 4% decline in revenue for the half-year ending October 12, 2025. Following the news, shares of Collins Foods fell 3.8% to A$8.450, reaching their lowest point since June 2025.