Collins Foods Keeps Bull Despite European Softness

Dow Jones
07/01

0139 GMT - Australian fast-food franchiser Collins Foods keeps its bull at Bell Potter despite a disappointing performance by its European business. Analyst Leo Armati tells clients in a note that a fall in sales since Collins's fiscal year ended on May 3 reflects the impact of the Middle East conflict, lower consumer confidence due to fuel prices, and the comparison with a strong prior period. "We do not view the first-eight weeks of trading as reflective of the underlying business," he writes. The resilience of Collins' KFC Australia revenues prompts Armati to raise his revenues forecasts for the next three years by between 3% and 6%. Bell Potter keeps a buy rating on the stock and raises its target price by 2.8% to 11.10 Australian dollars. Shares are down 2.8% at A$7.92. (stuart.condie@wsj.com)

 

(END) Dow Jones Newswires

June 30, 2026 21:39 ET (01:39 GMT)

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