Collins Foods Limited, the Brisbane-based restaurant operator headquartered on Kingsford Smith Drive in Hamilton, has announced the sale of 20 of its 27 Taco Bell restaurants as it sharpens its focus on growing its KFC business in Europe.
The ASX-listed company entered into a legally binding arrangement with YUM! Brands, the global owner of the Taco Bell brand, and Restaurant Brands Australia to transfer the 20 restaurants to new ownership. The remaining seven Taco Bell locations will close, with Collins Foods absorbing a $1.2 million hit to its bottom line as a result.
Managing director and CEO Xavier Simonet described the move as an opportunity to focus on the company’s core KFC business, with particular attention to accelerating profitable development in Germany.
A Queensland Company with More Than Five Decades of History
Collins Foods’ roots in Queensland stretch back to 1968, when it first obtained the KFC franchise for the state. The company opened its first restaurant in Kedron the following year and introduced the drive-through format to Australia in 1979, a concept now standard across the country.
The company’s headquarters moved to Brisbane in 2005 following a private equity acquisition, and it has been listed on the Australian Securities Exchange since 2011. Its corporate offices now sit at Level 3, KSD1, 485 Kingsford Smith Drive in Hamilton, placing it among the inner-city businesses that call Brisbane’s riverside precinct home.
The Taco Bell chapter began in 2018, when Collins Foods acquired the franchise rights for Australia. At its peak, the company operated 27 locations across Queensland, Victoria and Western Australia. The exit marks the end of that chapter, with the business returning to the brand’s global owner and its local partner.
Focusing on What Works for Collins Foods
For a company of Collins Foods’ size, concentrating resources on its strongest performer is a considered move. In 2025, Collins Foods reported annual revenue of $1.5 billion, up 2.1 per cent from the previous year, with net operating cash flow rising $5.1 million to $181.4 million.
The European expansion is gathering pace. Earlier in March, Collins Foods acquired eight KFC restaurants in Germany for $50 million, and also extended its corporate franchise agreement with YUM! Brands covering the Netherlands. The company’s growth strategy targets the addition of 40 to 70 new KFC restaurants in Germany over the next five years.
With 288 KFC restaurants across Australia and a growing European footprint spanning Germany and the Netherlands, the Taco Bell sale clears the runway for a more focused international push.
How the Sale Affects Staff and Store Operations
YUM! Brands and Restaurant Brands Australia will take over the 20 restaurants and continue operating them under the same ownership arrangement, with employees transferring to the new owners as part of the transaction. The deal uses a stock-based purchase structure, with the incoming owners also assuming the lease liabilities for all 20 sites.
The seven locations earmarked for closure represent the smaller, harder-to-transition portion of the portfolio. Collins Foods has not specified which sites will shut, though further detail is expected as the transaction moves toward completion.
Shares in Collins Foods fell 2.62 per cent in morning trade on the day of the announcement.
Keeping Across the Story
Collins Foods is an ASX-listed company trading under the code CKF. Updates on the Taco Bell transition and the company’s European expansion plans are available at collinsfoods.com. Media and investor enquiries can be directed through the company’s Hamilton headquarters at 485 Kingsford Smith Drive, Hamilton QLD 4007.
Published 01-April-2026
