Collins Foods Grows German KFC Portfolio 50% With High-Margin Bavaria Deal

Collins Foods completes acquisition of eight KFC restaurants in Bavaria, Germany

Collins Foods Limited (ASX: CKF) has completed the acquisition of eight KFC restaurants in Bavaria, Germany, from JJ Restaurant GmbH & Co. KG, effective 1 June 2026. The acquired restaurants will be consolidated into the Company’s financial results immediately. The transaction advances Collins Foods’ strategy to establish Germany as its “second core growth pillar,” and the sections below unpack what that means for the Company’s scale, geographic reach, and margin profile.

What this deal means for Collins Foods’ German footprint

The Bavaria acquisition grows Collins Foods’ German restaurant portfolio by approximately 50%, a step-change in scale rather than incremental growth. That expanded presence now spans three key German states, which together account for more than 50% of the country’s population and approximately 54% of Germany’s GDP.

Bavaria itself, centred around Munich, is among Germany’s most affluent regions. Munich is one of the country’s largest and wealthiest cities, making it a high-opportunity market for the KFC brand. Beyond the geography, the acquired restaurants operate at higher margins than Collins Foods’ existing German restaurants, meaning this deal improves the composition of the German segment, not just its size.

Three reasons the Bavaria portfolio strengthens Collins Foods’ position:

1. Scale uplift: A ~50% increase in German restaurant count significantly enhances Collins Foods’ operational leverage and bargaining position in the market.
2. Geographic and economic coverage: Three key states covering more than half of Germany’s population and approximately 54% of its GDP provides a strong commercial foundation for continued expansion.
3. Margin quality: The acquired restaurants carry higher margins than the existing German portfolio, improving the overall performance profile of the German segment.

Germany as a long-term growth opportunity for KFC

Germany is considered an underpenetrated market for quick service restaurant (QSR) brands like KFC. In this context, “underpenetrated” means there are fewer branded QSR locations per capita relative to comparable markets, which signals meaningful runway for network growth over time.

Collins Foods’ announcement explicitly describes Germany as offering “significant long-term growth potential” for the KFC brand. The Company’s stated strategy is to build Germany into its second core growth pillar alongside Australia, and the Bavaria acquisition is a direct expression of that intent. Rather than opportunistic deal-making, the transaction reflects a deliberate effort to establish the operational scale and geographic density needed to compete effectively in the German market over the long term.

CEO commentary and what’s next for Collins Foods in Europe

Xavier Simonet, Managing Director & CEO, Collins Foods

“This acquisition marks another important milestone in our German growth strategy. The additional scale created enhances our operational presence and positions us well to accelerate growth further in this key market.”

The commentary from Simonet signals that the Bavaria acquisition is not a standalone event. The language around “enhanced operational presence” and accelerating growth points to a management team that views this deal as a platform for further activity. The announcement also notes that Bavaria unlocks additional development opportunities, suggesting the Company intends to continue building scale in the region.

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