?Australia's KFC expansion benefits Collins Foods

Australia's largest KFC restaurant operator Collins Foods is going to pursue more acquisitions domestically and wants to use its recent buys in Germany to expand the fried chicken brand across Europe.

Collins Foods, which also owns Sizzler restaurants and emerging hot dog outlets Snag Stand, made a net profit of USD 15.4 million for the first half of the year, up 7.8 per cent from the same period a year ago.

Revenue was up 4.7 per cent at USD 282.5 million for the six months to October 16, despite KFC same store sales declining 0.6 per cent on the previous half. The company said the decline came in the wake of strong comparable growth a year ago.

Total KFC sales were up 6.4 per cent at USD 249.6 million in the latest half, due to the increase in restaurant numbers following acquisitions.

The acquisitions contributed USD 7.8 million in revenue.

Graham Maxwell, Chief Executive, KFC, said, "We will continue to pursue further acquisition opportunities as they arise, while also continuing to grow and refurbish our existing portfolio of restaurants."

He said Queensland and Western Australia, both hit by the mining slowdown, had begun to pick up again with sales growing.

He further added, "Queensland is still stronger than WA. The Queensland economy benefits more from tourism and education. It has a more balanced economy."

Flat prices for chicken compared to rising beef prices helped give KFC a competitive advantage over its "burger compatriots".

There's significant growth opportunity for us in the world's fourth-biggest economy, where there's significant under-representation of the KFC brand. For every 37,000 people in Australia there is one KFC, while in Germany there's only one KFC per 580,000 people." Maxwell said.

The better sales growth drove Sizzler's earnings before interest, taxes, depreciation and amortization up 27.3 per cent to USD 2.7 million.

The results have impressed investors who pushed Collins Foods' share price 30 cents, or 5.4 per cent, higher to USD 5.90 at 1522 AEDT.