Collins Foods has decided to exit its Taco Bell business and will devote its focus on expanding its KFC business, in partnership with Yum! Brands Inc.
The fast food operator said in an ASX filing that discussions on a potential transfer of the business to a new owner are ongoing.
Collins Foods seeks to complete the transaction within the next 12 months and should it fail to reach a deal with a new operator, the company will explore other exit options.
Meanwhile, the company said it entered an agreement with Yum! to open 40 to 70 new KFC stores in Germany over the next five years.
Yum! granted Collins Foods a period of exclusivity to open and operate KFC restaurants in certain trade areas within North Rhine Westphalia and Baden-Württemberg, where Collins Foods already operates.
Collins Foods will also consider potential acquisition opportunities to support faster scaling, expecting Germany to become the company’s second strategic growth pillar, with Australia as its core market.
“We are excited about accelerating expansion into Germany where the market remains underpenetrated, offering a clear runway for growth. Our partnership with YUM will fast-track our ability to scale in Europe, and we remain open to broader opportunities in this region,” Xavier Simonet, Manager Director and CEO of Collins Foods, said.
“In a challenging economic environment, the customer remains at the heart of our business. We will continue to deliver high-quality food at accessible prices, leveraging the heritage of the KFC brand at a time when consumer trust has never been more important.”
The company also announced several leadership changes including Hans Miete resigning as CEO of Collins Foods Europe and Helen Moore stepping down as COO of KFC Australia.
Chris Johnson, current COO of Collins Foods Europe, has been appointed as Acting General Manager – Europe.
In Australia, Taco Bell GM Krystal Zugno has been promoted to GM of Australian Operations, where she will lead both KFC and Taco Bell operations.