Popular fast food chain on chopping block
Taco Bell is set to be sold off by its Australian operator, leaving the popular fast food franchise's future in the country uncertain.
Collins Foods - the ASX-listed operator of KFC in Australia and Europe and Taco Bell - says it will sell the Mexican-themed chain, citing challenges competing against the much larger Guzman y Gomez brand.
Collins Foods managing director and chief executive Xavier Simonet confirmed they would be exiting their position in the Mexican-themed chain.
'In a challenging economic environment, the customer remains at the heart of our business,' he said.
'We will continue to deliver high-quality food at accessible prices, leveraging the heritage of the KFC brand at a time when consumer trust has never been more important.'
Collins Foods, which operates 27 Taco Bells in Australia, said it is in discussions with the American parent company about an exit next year.
According to figures released to the ASX in December, the fast food restaurant operators posted a 2 per cent drop in revenue from Taco Bell for the first half of the financial year.
Collins Foods' review will also see the business push for aggressive growth in Germany, with plans to expand its KFC chain with 40 to 70 new restaurants in the next five years, and closing restaurants in the Netherlands at a cost of $32.7m.
Mr Simonet said several initiatives - including the sale of Taco Bell - would provide strategic clarity and renewed purpose.
'We remain laser-focused on delivering operational excellence in our core market, Australia, where we continue to successfully adapt to a dynamic consumer landscape,' he said.
'We maintain a disciplined approach to capital deployment and operational excellence, optimising our existing network with carefully targeted expansion to ensure ongoing value for customers, partners, and shareholders.'
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