0118 GMT - Collins Foods' interim dividend disappointed Wilsons analysts, who flag cashflow as a notable highlight of the fast-food franchiser's first-half result. They tell clients in a note that the Australian company's A$75 million operating cashflow was 14% stronger than they had anticipated. Even so, they had expected Collins to hold its dividend at 12.5 Australian cents. Instead, it cut its payout to 11 Australian cents a share. They still like Collins' for the strength of its cornerstone KFC brand, cash generation, and potential for significant store growth. The stock is fundamentally undervalued, they add. Shares are down 3.4% at A$8.33. Wilsons is reviewing its forecasts. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
December 02, 2024 20:18 ET (01:18 GMT)
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