Insights

Why the Collins Foods (ASX:CKF) share price just hit a record high

The Collins Foods Ltd (ASX:CKF) share price has hit a record high on Friday. Here’s why the KFC operator’s shares are on fire this year…
The post Why the Collins Foods (ASX:CKF) share price just hit a record high appeared first on The Motley Fool Australia. –

chicken, KFC, drumstick, fried food, junk food

The Collins Foods Ltd (ASX: CKF) share price has been a strong performer again on Friday.

At one stage today, the quick service restaurant operator’s shares were up over 2% to a record high of $11.32.

When the Collins Foods share price hit that level, it was up over 18% since the start of 2021.

Why is the Collins Foods share price at a record high?

Investors have been fighting to get hold of Collins Foods shares thanks to its strong performance during the pandemic.

This was evident in December when the company released its half year results and revealed strong sales and profit growth.

For the six months ended 31 December, Collins Foods reported an 11.3% increase in revenue to $499.6 million. Management revealed that this was driven largely by strong growth from its KFC Australia operations. This offset weakness in Europe caused by COVID-19 restrictions

In respect to earnings, Collins Foods reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $63.7 million and an underlying net profit after tax of $27.5 million. This represents growth of 10.5% and 15.1%, respectively, over the same period last year.

And while no guidance was given for the remainder of FY 2021, management spoke positively about its growth opportunities and store expansion plans.

Collins Foods’ CEO, Drew O’Malley, commented: “We see growth opportunities across each of our business units, and we are focused on strengthening the operational foundations and ramping up our new restaurant pipelines to deliver on these opportunities.”

Can Collins Foods’ shares go higher?

Also giving the Collins Foods share price a boost in recent months were a number of bullish broker notes.

UBS and Wilsons were among the most bullish brokers. Their analysts have buy and overweight ratings with $11.65 and $11.62 price targets, respectively.

However, with the Collins Food share price now approaching these price targets, the near term upside could be limited.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Collins Foods (ASX:CKF) share price just hit a record high appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!