Citi flags risks for Australia's Collins Foods as McDonald's gains traction in key markets
MCD•Analyst positioning and share performance
Seven of 12 analysts rate the stock "buy" or higher, five "hold"; their median PT is A$10.30, according to data compiled by LSEG.
Stock down 19.2% YTD, as of last close.
Competitive pressure in chicken and beverages
The brokerage said McDonald's may have taken chicken market share from KFC in Germany, noting Collins Foods reported negative European same-store sales trends in May and June.
McDonald's appears to have a head start in premium beverages after launching an expanded drinks platform in Germany in May and Australia in July, ahead of Collins Foods' planned national rollout of its KWENCH beverages platform through FY27, Citi said.
The brokerage views the beverage strategy as a potential competitive threat, given signs the new McDonald's range has boosted customer traffic, transaction values and sales.
Citi turns cautious on Collins Foods after McDonald's results
Citi says there are several reasons to remain cautious on "neutral"-rated Collins Foods CKF.AX after McDonald's MCD.N quarterly results highlighted competitive momentum in Australia and Germany.
Both regions account for CKF's key KFC markets.
