Collins Foods (ASX:CKF) decided to exit its Taco Bell business, and it is currently in talks with Taco Bell International regarding a potential transition of the business to new ownership, which the firm plans to complete within 12 months, according to a Tuesday Australian bourse filing.

The company said that Australia remains a highly profitable growth market for it, and it plans to focus on driving growth both organically and through new restaurant openings under its current development agreement with Yum! Brands.

Yum! Brands and Collins Foods also entered into a binding agreement to accelerate strategic growth in Germany, per the filing. They will target between 40 and 70 new KFC restaurant openings across Germany over the next five years.

Yum! Brands was also granted a period of exclusivity to open and operate KFC restaurants in certain trade areas within two regions of Germany, North Rhine-Westphalia and Baden-Wurttemberg, where the firm already operates.

The company will review and optimize the existing restaurant portfolio in the Netherlands. A partial impairment of the Netherlands restaurant portfolio is expected in fiscal 2025, with the non-cash impact estimated to be AU$25.5 million to AU$32.7 million, based on the impairment work completed to date.