CKF +17.68%: the owner of KFC and Taco Bell franchises rallied to a 6-month high today following a beat on FY23 results released this morning. Revenue was up 14% to $1.35b, though Net Profit After Tax (NPAT) fell to $51.9m. Despite this, the fall was better than feared, coming in around ~8% above consensus expectations. Shares were weak into the result, hitting a 5-monthh low on fears rising costs would chew into both margins and volumes, however, the company has managed to steer itself through the squeeze so far. The biggest win came from Europe which saw margins improve in the 2H while still growing sales. FY24 has also started well with positive same-store sales growth for the first 7 weeks seen across all business segments. That includes +8.8% for the key KFC Australia brand which includes ~14% increase in price and a ~6% drop in volume.
MM is bullish CKF again following the result
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