How much money does a KFC restaurant make? A bucketload, it turns out

Australia’s largest KFC franchisee has revealed just how much money its fried chicken restaurants make, and it’s not a poultry sum.

Collins Foods, which operates a third of the KFC restaurants in Australia, last week reported a total revenue of $1.15 billion from its 288 stores in the past financial year.

That equates to an average of just over $4 million per restaurant, the majority of which are located in Queensland and Western Australia.

Revenue was up 3%, boosted by the net addition of nine new restaurants to the network.

The ASX-listed company, which also operates KFC restaurants in Germany and the Netherlands as well as Taco Bell locally, reported a $245 million profit for its Australian KFC business, meaning each restaurant delivered an average profit of $773,000 in FY25. 

Investors responded positively to the announcement, gobbling up shares and sending the share price soaring.

Shareholders are officially riding the potato and gravy train, with the share price closing the week 29% higher than on Monday, although it’s since slipped by about 2%.

Restaurant network expands as diners go digital

Collins Foods opened 10 new KFC restaurants in FY25 and closed one, which chief executive officer Xavier Simonet said was due to a better location becoming available.

One such newly built KFC restaurant in Gordonvale, south of Cairns, is on the market now, offering a net income of $278,000 per annum with a 15-year lease to Collins Foods.

The company intends to keep expanding its store network, expecting to open 7-10 new restaurants in FY26.

“Operational initiatives and a growing network are expected to drive sales and enhance customer experience over the year ahead, supported by improving consumer sentiment as cost of living pressures ease,” Mr Simonet said.

The company has plans to open 28-30 new restaurants by 2028, depending on the availability of suitable sites, according to chief financial officer Andrew Leyden.

Collins Foods opened 10 new KFC restaurants in Australia last financial year, including this store in Gordonvale in Queensland which is on the market now. Picture: realcommercial.com.au

“There’s a lot of work that goes into developing a pipeline [of new stores] in areas that we think will drive enough traffic to drive profitability,” Mr Leydon said.

“We’re not going to build restaurants for the sake of building restaurants. They need to be in the right place with the right traffic with the right productivity outcomes.”

Collins Foods also reported digital revenue for its Australian KFC business, which includes delivery, web, app, kiosk and click and collect sales, increased from about 29% of sales in FY24 to 34% in FY25.

About two thirds of KFC restaurants now have digital kiosks, said general manager of Australian restaurants Krystal Zugno, following the addition of a further 106 kiosks last financial year.

“They’re performing strongly so we’re looking at how we best spend our capital to invest further in digital formats,” she said.

Fast food restaurants are one of the most desirable options in the retail real estate sector, according to REA Group senior economist Anne Flaherty.

“Fast food outlets from big name brands typically do really well and are in high demand by property investors,” she said.

Taco Bell on the chopping block

In April, Collins Foods announced plans to sell or close the 27 Taco Bell restaurants it operates in Australia following a strategic review, citing underperformance.

The Mexican-themed fast-food business faces stiff competition from larger rivals Guzman Y Gomez and Zambrero, which each have hundreds of restaurants nationwide.

Collins Foods intends to close or sell all of the 27 Taco Bell restaurants it operates in Australia. Picture: realcommercial.com.au/for-sale

Australian expansion plans for Taco Bell had been paused since November 2024 due to disappointing earnings.

“Discussions are ongoing to transition our Taco Bell operations to new ownership with the intention to complete this process within 12 months,” Mr Simmonet said.