Background: Collins Foods is Australia's largest KFC operator. It's ASX-listed and runs more than 295 KFC stores locally, plus another 80 stores across Germany and the Netherlands. Until recently, it also held the Australian licence for Taco Bell.

What happened: Collins Foods just posted record group sales for its 2026 fiscal year, with revenue rising nearly 9% to almost $1.6 billion. Plus, net profit surged 281% to $47.1 million (giving investors plenty to smile about). Driving the growth? Products like the Liquid Gold Sauce, Zinger Banh Mi and Zinger Nachos.  

What else: But Collins Foods isn't celebrating just yet. That's because the company is keeping a close eye on the growing bird flu threat in Australia. With outbreaks already disrupting poultry supply in Europe, Collins knows firsthand how avian flu could create major supply chain issues... especially for a business built around chicken.

What's the key learning?

💡 Even the biggest players in an industry are still at the mercy of forces far outside their control.  And no matter how strong current sales look, when the supply chain gets sick, so does the bottom line.

💡 When bird flu hits poultry flocks, governments often order mass culls to contain the spread. During the 2022-2024 US bird flu outbreak, more than 90 million birds were culled. This sharply reduced supply and pushed chicken prices higher.

💡 Collins Foods has already seen the impact of bird flu in Europe. Profit margins have already been cut by up to 100 basis points. But with Australia's strong biosecurity offering some protection, Collins' CEO is hoping that it won’t affect Australian poultry in the same way.