Australia’s Collins Foods to transfer 20 Taco Bell outlets to Yum Brands

Australia’s Collins Foods to transfer 20 Taco Bell outlets to Yum Brands

March 31 (Reuters) – Australia’s Collins Foods (CKF.AX), said ​on Tuesday it would hand over 20 of its 27 ‌Taco Bell restaurants in the country to an affiliate of Yum Brands (YUM.N), and Restaurant Brands, moving closer to a full exit from the loss-making business.

The remaining seven ​would be closed in the coming weeks, the fast-food chain ​operator added.

The transaction was part of its previously flagged strategy ⁠to exit Taco Bell in Australia and refocus on its core ​KFC franchise in Australia and Europe, particularly Germany.

Yum owns several fast-food chains ​including KFC, Pizza Hut and Taco Bell, while Restaurant Brands, formerly listed in New Zealand, was acquired by Mexico’s Finaccess last year.

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The deal involves a nominal purchase price, ​with the new owners assuming lease liabilities for the 20 restaurants ​from completion.

“On balance, we view the transfer of the 20 TB stores for a ‌nominal ⁠amount as a slight positive,” said Michael Toner, RBC Capital Markets analyst.

“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 has been ⁠paring back its Taco Bell exposure as it doubles down on KFC, its biggest revenue generator.

Last April, the ​company said it planned to open 40-70 new KFC outlets ​in ⁠Germany over five years, arguing that the fried chicken brand was “under-penetrated” in the country.

Meanwhile, KFC Australia posted, opens new tab interim revenue of A$563.8 million ($385.6 million), while Taco Bell ⁠recorded ​a nearly 4% drop in revenue for the half-year ended ​October 12, 2025.

Shares of Collins fell 3.8% to A$8.450, their lowest since June 24, 2025, ​as of 0032 GMT.