Tonix Pharmaceuticals stock halted ahead of FDA approval news
Investing.com-- Australian fast-food franchise operator Collins Foods Ltd (ASX:CKF) said on Tuesday that it plans to exit its Taco Bell business within a year, and will invest in building more KFC outlets in Germany.
The move comes as a part of new strategic initiatives undertaken by Collins, as it grapples with slower consumer spending in Australia.
Still, the company said that Australia remained a “highly profitable growth market,” and that it will continue to focus on the market under its development agreement with KFC owner Yum! Brands Inc (NYSE:YUM).
Collins said it had entered an agreement with Yum to open new KFC outlets in Germany. Collins currently operates a fraction of the 207 KFC outlets in Germany, and sees the country holding great potential for the brand.
Collins said it expects Germany to become a second strategic growth pillar, and will also consider potential mergers to expand in Germany.
But elsewhere in Europe, Collins flagged a $25.5 million to $32.7 million impairment from its Netherlands business, as it undertakes a review and possible overhaul of the business. The franchise operator said that its Netherlands unit had faced headwinds from higher inflation and limited expansion in the country.
Collins’ shares fell 1.4% after its announcement, compared to a 0.2% rise in the ASX 200.