Collins Foods
Formerly
  • Collins Foods International (1968–1991)
  • Sizzler International (1991–2001)
  • Worldwide Restaurant Concepts (2001–2005)
TypePublic
ASXCKF
S&P/ASX 300 Component
Industry
Founded13 August 1968; 52 years ago (1968-08-13) in Culver City, California, U.S. as Collins Foods International[1]
FounderJames A. Collins
HeadquartersLevel 3, KSD1, 485 Kingsford Smith Drive, Hamilton, Queensland, Australia
Number of locations
217 restaurants in Australia and 65 restaurants in Asia (As of Nov 2016)
Area served
Key people
Drew O'Malley (CEO)
Revenue
  • IncreaseAU$574.3 million (2016)
  • AU$571.6 million (2015)
  • IncreaseAU$52.4 million (2016)
  • Increase A$30.1 million (2016)
Total assets
  • IncreaseAU$428.3 million (May 2016)
  • AU$408.9 million (May 2015)
Total equity
  • IncreaseAU$189.7 million (May 2016)
  • AU$171.3 million (May 2015)
Number of employees
9181 (Sep 2016)
Subsidiaries
  • Collins Foods Germany Ltd
  • Collins Foods Netherlands Ltd
  • Sizzler Asia
Websitewww.collinsfg.com.au

Collins Foods Limited is a publicly-listed Australian company focused in restaurant operations. It either operates or franchises restaurants from three brands — Sizzler, KFC and Taco Bell — in Australia, Germany, the Netherlands, Thailand and Japan. It previously owned the US-based Sizzler restaurants (until 2011), Snag Stand in Australia (until 2017), and was the majority-owner of the Pat & Oscar's in the US (until 2009).

History

United States national, James Collins, founded Collins Foods International in Culver City, California, in 1968[1] after multiple meetings with Colonel Sanders and acquiring the Sizzler brand in 1967. Collins Foods International was a publicly traded American company with more than 240 Sizzler and KFC stores in the United States and Australia.[2][3][4]

Collins Foods International began selling off 209 United States-based KFC stores to PepsiCo in 1990. The sale was completed in 1991 for a total of US$123 million. The company was renamed as Sizzler International as efforts were increasingly focused on its Sizzler business.[5] In 2001, the company was renamed as Worldwide Restaurant Concepts.[6][5]

In 2005, Worldwide Restaurant Concepts was acquired by Australian private equity firm, Pacific Equity Partners (PEP) for about US$208 million is cash.[7][8] PEP owned 52% of Worldwide Restaurant Concepts with the remaining 48% owned by company management.[9] As a result, the company headquarters moved from California to Brisbane, Australia. After the merger it was renamed as Collins Foods.[citation needed]

In 2011, Pacific Equity Partners offered its share of Collins Foods to an IPO, ending PEP's ownership of the company.[9]

In July 2020, Drew O'Malley took over as CEO following Graham Maxwell's retirement.[10][11]

Sizzler

In the 1980s, the company's Sizzler business was struggling financially as popularity with the general public dipped. Sizzler appointed Thomas L. Gregory as president and CEO of the chain during this time. The Sizzler brand underwent changes in menu selection and customer experience, which proved to help bolster the brand's profitability. Based on these results, Collins Foods International expanded further into Asia in 1992.[5]

In the mid-1990s Sizzler International was expanding aggressively in the Pacific region; however, domestic sales began to return with losses. In 1996, after debts reached approximately US$100 million, the company filed for chapter 11 bankruptcy protection. After some major restructuring and paying approximately US$70 million to creditors claims, Sizzler International recovered from the bankruptcy.[5]

In 2006, all 28 Sizzler restaurants across Australia temporarily suspended salad bar service after rat poison was found in two Brisbane Sizzler restaurants. Sizzler Australia referred to the incidents as sabotage.[12][13] The culprit turned out to be a woman described as being mentally unstable.[14]

In February 2008, PEP put Sizzler up for sale.[15] In 2011, Sizzler USA acquired all Sizzler restaurants based in the United States.[16]

In the 2013 financial year, Collins Foods reported stalling revenue for their Sizzler operations in Australia, blaming the downturn of the casual dining sector in the country.[17] By 2015 Collins Foods wrote down the value of Sizzler by AU$37.5 million. In an investors meeting by Collins Foods, CEO Graham Maxwell states: "We no longer consider Sizzler to be a strategic growth prospect in Australia and therefore we will not be investing further capital".[18] Collins Foods began to close a limited number of Sizzler restaurants in Australia, with greater focus directed to their KFC operations. Meanwhile, Sizzler operations in Asia continued to thrive, with further expansion plans in China.[19]

In 2016, Collins Foods operated 21 Sizzler restaurants in Australia, a decrease of two stores compared to financial year 2016. Collins Foods also operated 65 Sizzler restaurants in Asia, an increase of 5 stores compared to the previous financial year.[20] An additional two stores in Asia were planned for financial year 2017.[21]

In 2020, Collins Foods closed its six remaining Sizzler stores in China due to the impact of the COVID-19 pandemic.[22] In October 2020, Collins Foods announced that it would be closing all nine remaining Australian Sizzler restaurants by 15 November 2020, citing the impact of the COVID-19 pandemic on revenues.[23][24] Collins continues to license the use of the Sizzler restaurant brand in Thailand[25] and Japan.[26] As of November 2020, there are 58 Sizzler restaurants in Thailand[27] and 10 Sizzler restaurants in Japan.[28]

KFC

In November 2013, Collins Foods acquired the 44 KFC restaurants (40 in Western Australia and 4 in the Northern Territory) owned by Competitive Foods Australia for $55.6 million.[29] In May 2016 Collins Foods further acquired 13 KFC restaurants in New South Wales and Victoria.

As of November 2016 Collins Foods operates 190 KFC stores in Australia: 132 in Queensland, four in the Northern Territory, 41 in Western Australia and two in New South Wales.[20] An additional 5 to 6 stores are planned for financial year 2017.[21] In June 2017, Collins Foods acquired 28 KFC stores in Tasmania, South Australia and Western Australia from Yum! Brands for $110.2 million.[30]

On 31 October 2016 Collins Foods announced that its German subsidiary, Collins Foods Germany, entered into a binding agreement to acquire 11 KFC restaurants in Stuttgart and Düsseldorf, Germany for €12.7 million (A$18.4 million). This occurred in the wake of KFC Germany's plans to increase its store count from 140 to 300 stores in the next few years. Completion of the acquisition is expected to occur in December 2016.[31] Collins Foods plans to open four to five new KFC restaurants per year in Germany for financial years 2017 to 2018.

In March 2017, Collins Foods expanded into the Netherlands with the purchase of 16 KFC stores from subsidiaries of Yum! Brands for €62.3 million (A$87.8 million). As part of the deal, Collins Foods also entered into a development agreement to open more than 20 KFC stores in the country by the end of 2021.[32][33]

As of May 2020, Collins Foods operates 240 KFC restaurants in Australia, 17 in Germany, and 23 in the Netherlands.[22]

Taco Bell

On 6 September 2018, Collins Foods announced that it has purchased the franchise rights to Taco Bell in Australia.[34] Collins now has plans to roll out 50 Taco Bell stores across Australia over the next 5 years.[34]

As of May 2020, Collins Foods operates 12 Taco Bell restaurants in Australia.[22]

Former brands

Pat & Oscar's

In May 2000, Sizzler International announced it would purchase an 82% stake in the Oscar's restaurant chain for $21 million in cash and stock.[35] The chain was later renamed as Pat & Oscar's. In January 2009, the management team of Pat & Oscar's bought out the company.[36]

Snag Stand

In 2013, Collins Foods acquired a 50% equity stake in Snag Stand, a gourmet sausage chain founded in 2011 by businessperson Philip Blanco.[37][38][39] In 2016, Collins Foods acquired the remaining 50% equity stake in Snag Stand, making the brand a wholly owned property.[40]

Six Snag Stand outlets were operated in Australia: three in Queensland, two in New South Wales and one in the Australian Capital Territory.[20] Collins Foods closed down all Snag Stand stores in 2017.[41]

See also

References

  1. ^ a b Securities and Exchange Commission News Digest Issue No. 68-177 (PDF) (Report). U.S. Securities and Exchange Commission. 10 September 1968. pp. 2–3. Organized on August 13, 1968, the company owns and operates 33 retail take-out food stores in Southern California which prepare and sell "Colonel Sanders Recipe Kentucky Fried Chicken" under franchise from Kentucky Fried Chicken Corp.; through its subsidiary Sizzler Family Steak Houses, it has granted franchises in 21 states for 153 restaurants serving steak dinners and complementary food items.
  2. ^ "James A. Collins". www.cpp.edu. Retrieved 25 November 2016.
  3. ^ Olver, Thomas. "James A. Collins UCLA '50 Oxford Cup Roll No. 061" (PDF). Archived from the original (PDF) on 17 March 2015. Retrieved 25 November 2016.
  4. ^ Security and Exchange News Digest (PDF). U.S. Securities and Exchange Commission (Report). 10 September 1968. pp. 2–3.
  5. ^ a b c d "History of Worldwide Restaurant Concepts, Inc. – FundingUniverse". www.fundinguniverse.com. Retrieved 25 November 2016.
  6. ^ Peltz, James F. (31 August 2001). "Sizzler Changes Corporate Name to Reflect Reach". Los Angeles Times. Archived from the original on 2 October 2020. Retrieved 2 October 2020.
  7. ^ "Pacific Capital orders up a Sizzler". Private Equity International. 30 December 2012. Archived from the original on 4 October 2020. Retrieved 4 October 2020.
  8. ^ "Worldwide Restaurant Concepts, Inc. Completes Its Merger With Affiliates of Pacific Equity Partners PTY Limited". PR Newswire (Press release). 22 September 2005. Archived from the original on 17 September 2017. Retrieved 25 November 2016.
  9. ^ a b Hammond, Michelle (5 July 2011). "Collins Foods' IPO plans highlight food sector strength". StartupSmart. Archived from the original on 26 November 2016. Retrieved 25 November 2016.
  10. ^ Hammond, Elisha (9 June 2020). "Drew O'Malley is Collins Foods' (ASX:CKF) new CEO - The Market Herald". themarketherald.com.au. Archived from the original on 14 August 2020. Retrieved 4 October 2020.
  11. ^ "Collins Foods Limited – Appoints Drew O'Malley As CEO" (PDF). Collins Foods Limited. 9 June 2020. Archived (PDF) from the original on 4 October 2020. Retrieved 4 October 2020.
  12. ^ "Sizzler shuts salad bars over poison scare". Australian Broadcasting Corporation. 1 March 2006.
  13. ^ Stevens, Craig (28 February 2006). "Media Statement" (PDF). Sizzler International (Press release). Archived from the original (PDF) on 6 July 2011.
  14. ^ "Sizzler woman too sick for court". Sydney Morning Herald. Australian Associated Press. 2 March 2006. ISSN 0312-6315. Retrieved 30 April 2012.
  15. ^ "Sizzler owner puts steakhouse chain up for sale". Reuters. 8 February 2008. Retrieved 4 October 2020.
  16. ^ "Sizzler® USA Management Acquires U.S. Operations | Business Wire". www.businesswire.com. 9 June 2011. Retrieved 25 November 2016.
  17. ^ "ASX release - Collins Foods announces return to revenue growth FY13 financial results" (PDF). asx.com.au. Collins Foods Limited. Retrieved 26 November 2016.
  18. ^ Pash, Chris (25 June 2015). "Sizzler is dying in Australia as owner pulls investment". Business Insider Australia. Retrieved 2 September 2020.
  19. ^ "Some Sizzler restaurants to shut after Collins Foods posts loss". Brisbane Times. 25 June 2015. Retrieved 2 September 2020.
  20. ^ a b c "2016 Annual General Meeting" (PDF). asx.com.au. Collins Foods Limited. 1 September 2016. Retrieved 26 November 2016.
  21. ^ a b "FY17 - Half Year Results". asx.com.au. Collins Foods. 30 November 2016. Retrieved 30 November 2016.
  22. ^ a b c "Annual Report 2020" (PDF). July 2020. Retrieved 4 October 2020.
  23. ^ Powell, Dominic (2 October 2020). "Curtains for Sizzler in Australia as COVID forces full closure". The Sydney Morning Herald. Archived from the original on 2 October 2020. Retrieved 2 October 2020.
  24. ^ "Sizzler to close doors for good". PerthNow. 2 October 2020. Archived from the original on 2 October 2020. Retrieved 2 October 2020.
  25. ^ "Sizzler USA Goes Bust, But Thailand Salad Bar Lives On". Bangkok Herald. 23 September 2020.
  26. ^ Pask, Katie (23 August 2020). "Sizzler's salad bar now available for takeout in Japan, but is it really all-you-can-eat?". Sora News 24.
  27. ^ "All Sizzler Restaurants". Sizzler Thailand.
  28. ^ "Sizzler locations". Sizzler Japan.
  29. ^ Williams, Peter (29 November 2013). "Cowin sells off KFC stores for $56m". The West Australian. Archived from the original on 7 January 2020. Retrieved 4 October 2020.
  30. ^ Pash, Chris (26 June 2017). "Collins Foods is creating Australia's biggest KFC chain in a $110.2 million deal". Business Insider Australia. Archived from the original on 28 February 2020. Retrieved 4 October 2020.
  31. ^ "ASX release - Collins Foods Limited strategically expands into Germany" (PDF). asx.com.au. Collins Foods Limited. 31 October 2016. Retrieved 26 November 2016.
  32. ^ "Collins buys into second Euro KFC chain - 9Finance". finance.nine.com.au. Archived from the original on 4 October 2020. Retrieved 4 October 2020.
  33. ^ Hogan, Andrea (27 March 2017). "Collins Foods expands into Netherlands with KFC acquisition | Australian Food News". www.ausfoodnews.com.au. Archived from the original on 4 October 2020. Retrieved 4 October 2020.
  34. ^ a b "Free Australian Stock Market Information - The Latest Australian Stock Information". Free Australian Stock Market Information. Retrieved 23 January 2019.[failed verification]
  35. ^ Kesmodel, David (25 May 2000). "Sizzler Orders Big Stake in Oscar's Restaurant Chain". Los Angeles Times. Archived from the original on 2 October 2020. Retrieved 2 October 2020.
  36. ^ Soto, Onell R. (24 January 2009). "Pat & Oscar's purchased by management team". courant.com. Archived from the original on 2 October 2020. Retrieved 2 October 2020.
  37. ^ "News & Announcements | Collins Foods Limited" (PDF). www.collinsfg.com.au. Retrieved 2 September 2020.
  38. ^ Grey, Justin (17 August 2011). "My business meets ... Philip Blanco of T2, Mad Mex and Snag Stand". Retrieved 25 November 2016.
  39. ^ "Collins Foods snags a new fast food venture". Retrieved 25 November 2016.
  40. ^ "Collins Foods hungry for expansion". News.com.au. 1 September 2016. Retrieved 25 November 2016.
  41. ^ Pash, Chris (29 November 2017). "Collins Foods shares are tanking as KFC acquisitions drag on profit". Business Insider Australia. Archived from the original on 4 October 2020. Retrieved 4 October 2020.