However, the company has promised to re-evaluate the future of Sizzler by the end of the financial year. “We are generally pleased with the way overall sales and earnings have trended over the first quarter of the new financial year and the outlook is positive for Collins Foods and the Group’s ability to deliver growing shareholder returns,” said Mr Perkins, who intends to step down as managing director later this year but remain an executive director.
Collins Foods is embroiled in an increasingly bitter spat with 17 per cent shareholder and non-executive director Stephen Copulos, who has publicly criticised the performance of the Sizzler chain, accused the company of poor corporate governance and remuneration practices, and questioned growth strategies such as last year’s acquisition of Snag Stand.
Mr Copulos has accused Mr Perkins of a conflict of interest because of his 55 per cent stake in Sizzler USA and his continued defence of the Sizzler strategy in Australia even though Sizzler’s sales and earnings have been in decline since the initial public offer three years ago.
Collins Foods, Australia’s largest KFC franchisee, said on Monday that earnings before interest and tax for the 12 weeks ended July 20 rose 28 per cent to $8. 5 million and net profit by 21 per cent to $4. 5 million as sales grew 28 per cent to $124. 3 million.
Fast food retailer Collins Foods has tried to fend off criticism from dissident shareholder Stephen Copulos by releasing a trading update which showed that earnings rose more than 20 per cent in the first quarter of 2015.
Mr Copulos, who is Australia’s second largest KFC franchisee, has described Collins Foods’ ‘Get Refreshed’ campaign to turn around Sizzler sales as a “band aid” solution for a business that has “passed its use-by date” and that major surgery is required.
Read more here: SMH