Collins Foods Exits Taco Bell Australia, Cites Losses

Collins Foods announced on March 31, 2026, a significant strategic shift involving its Australian Taco Bell operations. The company is transferring ownership of 20 of its 27 Taco Bell restaurants to an affiliate of Yum Brands and Restaurant Brands.

This move is part of a broader strategy to exit the underperforming Taco Bell business in Australia. The remaining seven Taco Bell locations are slated for closure in the upcoming weeks. Collins Foods aims to refocus its resources and efforts on its highly successful KFC franchise, particularly in Australia and Europe.

The transaction involves a nominal purchase price, with the new owners assuming lease liabilities for the 20 transferred stores. Analysts view this transfer as a slight positive for Collins Foods, anticipating a cleaner disposal of leases for the remaining seven locations amidst a competitive market.

Collins Foods has been strategically reducing its Taco Bell presence to bolster its KFC operations, which represent its primary revenue stream. In Germany, the company plans to open 40-70 new KFC outlets over the next five years, viewing the brand as significantly under-penetrated in that market. This contrasts sharply with Taco Bell Australia's performance, which saw a nearly 4% revenue decline in the half-year ended October 12, 2025. In the same period, KFC Australia achieved interim revenue of A$563.8 million.