KFC owner Collins Foods shares sliding today on class action news
Collins Foods shares are down slightly following the announcement of a $9 million settlement regarding employee rest breaks.Summary
Collins Foods Ltd (ASX: CKF) shares experienced a modest decline of 0.5% in morning trade on Friday, closing at $9.87 apiece, amidst news of a $9 million settlement for a class action lawsuit. The lawsuit, filed in December 2023, concerned 10-minute employee rest breaks, and the settlement is subject to Federal Court approval. Despite this, the company clarified it made no admission of liability.
This comes after a positive day for Collins Foods, with shares closing up 5.2% on Thursday following the announcement of an agreement to acquire eight KFC restaurants near Munich, Germany, for approximately $50 million. Management forecasts $46 million in revenue and $9 million in EBITDA from these restaurants in the first year. CEO Xavier Simonet highlighted the significant growth opportunity in the German market, with plans to open 45-90 new restaurants in the next four years.
Over the past 12 months, Collins Foods shares have risen 19.8%, outperforming the benchmark index's 11.1% gain.
(Sourceļ¼The Motley Fool Australia)