Collins Foods to Exit Taco Bell Business in Strategic Shift

Published 19 days agoYUM

Collins Foods to Exit Taco Bell Business in Strategic Shift

Collins Foods, the franchise operator for Taco Bell in Australia, announced its decision to exit the Taco Bell business due to unfulfilled expectations. This move is part of a strategic realignment by the company to pursue more lucrative opportunities, redirecting focus to its KFC operations.

The decision comes amidst challenging market conditions, including slower consumer spending in Australia. Despite these challenges, Collins Foods believes that its KFC business is highly profitable in the region. Initially intending to expand KFC operations in Germany, Collins Foods has now decided to exit that market too, concentrating solely on KFC's growth elsewhere. According to Insider Monkey, this shift reflects the company's strategic pivots amid changing market dynamics.

Collins Foods' shift comes at a time when Taco Bell itself is eyeing global expansion, with plans to increase its locations outside the U.S. from 1,150 to over 3,000 by 2030, including a growing presence in Australia. Despite a slight drop in its shares following the announcement, Collins remains optimistic about its future prospects with KFC, signaling confidence in the brand's potential for sustained profitability.

Share this article

Twitter Facebook LinkedIn

Recent Articles

Unity Software Climbs Amid Analyst Upgrades and Strong Earnings

Unity Software Climbs Amid Analyst Upgrades and Strong Earnings

Unity Software has enjoyed a streak of gains for eight consecutive trading sessions. This momentum was largely driven by multiple analyst upgrades and increased price targets. Piper Sandler, for instance, maintained an overweight rating and raised its price target for Unity from $150 to $152, highlighting the company's resilience and potential for market share expansion in the post-IDFA environment, as noted by The Street. Supporting this bullish sentiment, Unity reported a narrower-than-expected loss of 2 cents per share, beating analyst expectations of an 11-cent loss. The company reported a substantial 48% year-over-year increase in revenue, reaching $273.6 million. Unity also raised its full-year guidance, signaling robust financial health and performance as detailed by The Street. Investor confidence is further bolstered by recent leadership changes, with CEO John Riccitiello's retirement and James Whitehurst's appointment as interim CEO being positively received. Combined with Unity's strong market position in 3D graphics software and backing from major investors like Catherine Wood and PRIMECAP Management, these factors have supported Unity's impressive stock performance, according to Benzinga.

Amgen Injects $900 Million into Ohio Biotech Plant Expansion

Amgen Injects $900 Million into Ohio Biotech Plant Expansion

Amgen has unveiled plans for a $900 million expansion of its biotech manufacturing facility in Ohio, increasing its overall investment in the region to over $1.4 billion. This move is set to create 750 new jobs, further supporting the local economy, according to Reuters. The expansion comes as part of a broader industry trend where major pharmaceutical companies like Eli Lilly, Novartis, Roche, and Johnson & Johnson are boosting U.S. manufacturing capabilities. These shifts are largely driven by potential import tariffs aimed at encouraging domestic production. Establishing new production facilities in the U.S. entails substantial investment and regulatory challenges, often requiring five to ten years and around $2 billion. Since the 2017 Tax Cuts and Jobs Act, Amgen has committed nearly $5 billion to U.S. capital projects, contributing an estimated $12 billion to the nation's economy. Beyond Ohio, Amgen operates manufacturing sites in Massachusetts, Rhode Island, California, and around the globe, including Puerto Rico, Ireland, the Netherlands, and Singapore.

Phillips 66 Faces Major Q1 Loss Due to Refining Margin Drop

Phillips 66 Faces Major Q1 Loss Due to Refining Margin Drop

Phillips 66 has reported a significant loss for the first quarter of 2025, highlighting challenges in its refining division. The company recorded a net loss of $937 million in its refining unit, a drastic change from the $216 million profit it had seen a year ago. This downturn was primarily driven by a 38% decline in realized refining margins, which fell to $6.81 per barrel, coupled with increased maintenance costs. Maintenance operations significantly impacted Phillips 66's recent performance, with turnaround expenses more than doubling to $270 million. As a result, refinery utilization plummeted to 80%, down from 92% in the previous year. The extensive maintenance efforts are crucial to the company’s operations but have come amidst a broader industry context of tightening margins and competitive pressures. CEO Mark Lashier addressed the loss by citing a challenging macroeconomic environment and the substantial scale of spring maintenance activities. Despite the immediate financial setback, Lashier expressed optimism about future profitability. According to Reuters, shares of Phillips 66 fell nearly 2% following the earnings announcement, reflecting investor concerns shared across the sector as Peers like Valero Energy reported similar financial strains.

Novavax Shares Drop as FDA Requests New Trial for COVID-19 Vaccine Approval

Novavax Shares Drop as FDA Requests New Trial for COVID-19 Vaccine Approval

Novavax's stock fell by 4.8% to $6.73 after the FDA requested an additional clinical trial to evaluate the effectiveness of its COVID-19 vaccine. The Wall Street Journal reported that the agency's request has delayed the vaccine's path to full approval in the U.S. According to Reuters, the FDA has urged Novavax to provide more conclusive evidence regarding its vaccine's efficacy before it can receive final approval. The report also suggests that the approval process is being influenced by recent political appointees, potentially affecting the speed of the decision-making process. Novavax has yet to issue an official response to the FDA's request. The company is currently navigating regulatory challenges amid discussions about vaccine approval expectations. However, as of the report, there was no comment from Novavax on the specific details of the FDA's demands or the implications for their vaccine rollout plans.