Well, good morning, everybody. How are we all? Good start. Hi, my name's Mark Hawthorne, and welcome to the Collins Foods Limited 2026 Annual General Meeting, which is my first AGM addressing you as Chairman. Having begun my QSR journey on my 15th birthday at McDonald's Coffs Harbour, this is a role that I feel very privileged to have. I accepted this role mostly because of the confidence I have in the strength of the KFC brand and the company strategy to convert that into sustainable growth, and in the team we have to deliver it. I'd first like to acknowledge Robert Kaye SC, who led this board as Chair with distinction for over 11 years. In his time as Chair, the Collins share price increased by more than four times. I was personally very grateful that Robert agreed to continue as a Non-Executive Director until his next election, because his support and counsel has been truly invaluable. I'd like to thank Robert for his considerable contribution to the company over a long period of time, and what he's contributed to my leadership personally. Thank you, Robert. As a reminder, only shareholders, their appointed proxies, corporate representatives, or attorneys may ask questions, make comments, or vote during the meeting, and all other attendees are very welcome to observe. I do note that a quorum is present in accordance with the company's constitution, and as it is now 9:30 A.M., I declare the 2026 Annual General Meeting of Collins Foods Limited open. I'd like to now introduce the members of the board who are present today. To my immediate right is Xavier Simonet, Managing Director and Chief Executive Officer, looking very dapper today, suit and tie and all. Next to him is Robert Kaye SC, as I said, our former Chair and Independent Non-Executive Director. Besides Robert is Christine Holman, Chair of the Audit and Risk Committee, who, as outlined in the notice of meeting, will retire from the board at the conclusion of today's AGM. Christine, what you've done for Collins is hard to explain. What you've done on the strategy for Collins and where you've taken Collins on the gold standard route of compliance and governance is just extraordinary. I've learned a lot from Christine, and her counsel and friendship has been very important to me, and I hope those last two remain forever. So thank you personally and for Collins, Christine. Next to Christine is Meredith Scott, who was appointed as an Independent Non-Executive Director by the board on 1st of June 2026 with a lot of experience, particularly in audit in Ernst & Young days. So, she brings a lot of capability to the function, which we're very excited about. Meredith is standing for election at this AGM and will assume the role of Chair of the Audit and Risk Committee following conclusion of today's meeting. Next is Kevin Perkins, a Non-Executive Director. We had to go to the archives to see how many AGMs this is for Kevin. I think we worked out it's about 12. So, thanks, Kevin. Online from the U.K. is Nigel Clark, an Independent Non-Executive Director. Nicki Anderson, who will retire from the board at the conclusion of today's meeting, is not present at the AGM today due to personal reasons. We are also joined by members of our executive leadership team. To my left is Tracey Wood, who is our Chief Legal and Risk Officer and Company Secretary. Also present is Andrew Leyden, the Group CFO, with all his friends down the front. We have Krystal Zugno, the Head of our Australian Operations, and Tony Van Der Ark, our Chief Development Officer. Welcome to all of you. Finally, we are pleased to welcome Ben Woodbridge, the Lead Audit Partner from PwC, who is available to answer questions relating to the audit and the auditor's report today. Now, before proceeding to the formal business of the meeting, I will provide a brief overview of the 2026 financial year. Xavier will then provide an update on the company's strategy and outlook. Following our presentations, we will invite questions from shareholders before moving to the formal part of the business. The notice of meeting has been available to shareholders, and with your consent, I will take that notice as read. I also refer shareholders to the correction of the notice of meeting released to the ASX on the 13th of August 2026, which corrected typographical errors in the explanatory memorandum relating to resolution five. I further confirm that resolution two regarding the re-election of Nicki Anderson has been withdrawn. Accordingly, resolution two will not be put to the meeting, and any proxy votes received in relation to that resolution will not be counted. The notice of meeting in the company's website provided shareholders with information on how to participate in the AGM, ask questions, and vote online using either a desktop or mobile device. I will now briefly remind shareholders of the process for submitting questions and voting online. Text questions may be submitted through the online meeting platform at any time during the meeting. To ask a question, select the Q and A icon, type your question into the text box, and then press the Send button. To ask a verbal question, please follow the instructions displayed below the webcast. Shareholders attending in person who wish to ask a question when verbal questions are invited should wait for a microphone so their name and question can be clearly heard by all attendees. As indicated earlier, questions will be addressed later in the meeting. Questions may be moderated to avoid repetition, and where questions are practically lengthy, they may be summarized in the interest of time. Depending on the nature of the question, I may respond directly or invite a member of management or another director or the auditor to respond. Now, while we will endeavor to address as many questions as possible during the meeting, if time does not permit us to answer every question, we may respond to shareholders separately after this meeting. So I encourage shareholders to submit your questions as early as possible. All orders of business will be decided by poll. I will open the polls now and keep them open throughout the meeting, allowing eligible shareholders and proxy holders to vote at any time. If you are eligible to vote and have logged into the online meeting platform, a voting icon, which looks like a ballot paper, will appear on your screen or navigation bar. Selecting this icon will display the resolutions and available voting options. There is no need to press the submit button, as your vote will be recorded automatically. You may also change your vote at any time before the polls are closed. Shareholders and proxy holders attending in person may complete their voting cards at any time during the meeting, and Lewis Brimelow with Computershare will act as returning officer for the conduct of the poll. The results of the poll will be released to the ASX following the conclusion of this meeting. I now declare the poll open. If the voting icon is not immediately visible, it should appear shortly. If you are experiencing any difficulties accessing the voting platform, please refer to the guidance available on the company's website or seek assistance from Computershare. Lewis is up the back or at the desk. Xavier will shortly provide an update on the company's performance, strategy, and outlook. Before I hand to him, I would like to make a few opening remarks. FY 2026 was an outstanding year for Collins Foods, and I would personally like to thank all of management led by Xavier as CEO, everybody in our support centers, and the over 22,000 team members in our restaurants whose relentless efforts have contributed to this result. The company delivered record revenue and record underlying profit in very demanding economic conditions for the quick service restaurant sector. As well as record profit performance, cash generation was yet again a highlight. Net debt and our net leverage ratio were reduced. This was all while we continued to invest in our team, in our restaurant network, and in technology. Xavier will comment further on our trading performance a little later. On the back of such a strong year, the board declared a final fully franked dividend of AUD 0.15 per share, taking the total FY 2026 dividend to AUD 0.28 per share, which was up from AUD 0.26 the year before. This was a record equaling dividend for shareholders. 2026 was also a year in which we strengthened the strategic foundations of the business. We firstly restructured and extended our corporate franchise agreement in the Netherlands. We signed new development agreements in Germany and executed the acquisition of eight KFC restaurants in Munich, which gives us a strong base from which to develop restaurants in the three wealthiest states of Germany. We also exited Taco Bell, with the transaction being completed on 17th of August 2026. As part of that exit, the company anticipates recording a one-off gain relating to the lease liabilities and the transfer of them, the gain expected to between AUD 20 million and AUD 22 million. Specifically, these decisions mean we can concentrate fully on the KFC brand in Australia and Europe. Our growth aspirations have never been stronger. In Australia, the KFC brand health remains a real strength because KFC continues to lead the category on the measures customers care about, which is the Brand Development Index and brand buzz. Our opportunity is to translate that brand strength more fully into higher revenues and profitability, closing the average unit gap with our largest competitors. Germany is our second strategic growth pillar and a substantial opportunity. We now operate 25 restaurants in Germany and are the largest KFC franchisee in the market by revenue. KFC has close to 220 restaurants in Germany, serving more than 80 million people annually, compared to approximately 1,400 restaurants for McDonald's. We will be targeting significant growth in our portfolio by FY 2030. Location, revenue, profit potential will remain key determinants of where we will choose to locate those restaurants, and we will remain disciplined in terms of where we allocate that capital. In the Netherlands, profitability remains our priority ahead of network growth and we will only consider network growth where conditions warrant it. In addition to my succession as Chair from Robert Kaye SC, who has made an outstanding contribution to Collins Foods, we have previously communicated that this meeting marks the retirement of two directors. Christine Holman, Chair of the Audit and Risk Committee, and Nicki Anderson, Chair of the People, Culture and Nominations Committee, who steps down at the conclusion of this meeting. I would like to thank Christine for her time as a board member of Collins, but specifically for how she lifted the leadership and governance of the Audit and Risk Committee. As announced on 18th of August, Nicki Anderson advised the board of her decision to retire for personal reasons and withdrew her nomination for re-election. On behalf of the board, I would like to thank Nicki also for her valuable contribution, including her leadership of the People, Culture, and Nomination Committee, or PCNC for short, and we wish her also every success for the future. Robert Kaye, who misses being Chair, will Chair the PCNC until such time as a new director is appointed, and Nigel Clark from the U.K. will join that committee. As I said before, I am pleased to welcome Meredith Scott, who joined the board on 1st of June and stands for re-election today. Meredith brings more than 30 years of experience in financial oversight, governance, and risk, and subject to your approval, will succeed Christine as Chair of the Audit and Risk Committee. Getting pay and conditions right for our people is an obligation we take seriously, and we are meeting it head on. Our voluntary wage compliance review continued during the year, and we commenced remediation payments to affected team members in November 2025. At the end of FY 2026, the provision for estimated wage underpayments stood at AUD 8.3 million and we remain actively and constructively engaged with the Fair Work Ombudsman in respect of our obligations. Also entered into a settlement agreement on a no admissions basis regarding the class action proceedings concerning the 10-minute pause breaks. Collins Foods' share of that settlement is approximately AUD 9 million, but the settlement does remain subject to court approval. On safety, our injury frequency rate in Australia improved 27% on FY 2025, and we are partway through a multimillion-dollar program to replace older pressure cookers within our fleet. Safety continues to be a critical organization priority, reflecting the importance of protecting our team, our customers, and our communities. We are also seeking your approval today for amendments to the long-term incentive plan. Following an independent review and consultation with shareholders, it is proposed that a post-tax return on capital employed measure be introduced, replacing relative total shareholder return. This will carry equal weight with earnings per share growth. It is also proposed that there will be no vesting unless returns are equal to or greater than our cost of capital by at least 100 basis points. As we enter a more capital-intensive phase of growth, our focus will be ensuring your capital is deployed in a way that supports long-term growth. FY 2026 also marked an important step in our sustainability reporting, with the company publishing its first climate report under new mandatory reporting standards, including our inaugural transitional plan. Our 2026 sustainability report has been impressively led by Emma Verheijke. Have I said that right, Emma? Good. Thank you. Who is our group head of sustainability and sets out our broader progress and the pathway to achieving our 2030 goals. Finally, thank you to all of you, our shareholders, for your continued support, my fellow board members, and to our more than 22,000 team members across Australia and Europe for their effort and commitment to our business and who are instrumental in delivering those record results. Collins Foods enters FY 2027 with a clear strategy, exciting strategic growth plans in both Australia and Germany and Europe, and a board and management team intent on executing that plan. With that, I would like to welcome Xavier Simonet, our Managing Director and Chief Executive Officer, to address you. Thank you very much, Mark. Good morning, everyone. FY 2026 was a year of disciplined execution. We grew the business and lifted profitability in every market and refocused the company on the KFC brand to set up our next stage of growth. Our strategic priorities are clear: grow Australia faster, build Germany profitably, run every restaurant better, while also continuing our focus to lift governance and safety standards even further across our business. With respect to FY 2026 results, group revenue from continuing operations was a record AUD 1.6 billion, up 8.6%. Underlying EBITDA was AUD 244 million, up 6.3%, and underlying NPAT was a record AUD 61.4 million, up 13%, the highest in the company's history, with underlying earnings per share of AUD 0.52. Statutory NPAT was AUD 47 million. Statutory NPAT of AUD 47 million included AUD 7.3 million relating to the class action settlement and associated costs, AUD 6.5 million of net restaurant impairments, and AUD 1.5 million wage provision top-up, as well as AUD 0.4 million of acquisition costs. Cash generation was strong, with net operating cash flow of AUD 150 million and cash conversion of circa 94%. We reduced net debt to AUD 120 million and our net leverage ratio to 0.77x, while continuing to invest in our team, our restaurant network, and in technology. Return on shareholders' equity grew 220 basis points to 14.5%. Our exceptionally strong balance sheet provides us with the capacity and flexibility to invest in profitable growth. Moving on to Australia. Australia remains our largest and most profitable market, and in FY 2026, we delivered record revenue of AUD 1.2 billion, up 7.6%, with same store sales growth of 2.7%, with momentum building as the year progressed. We opened eight new restaurants and completed 33 remodels, including three supercharged formats. Digital grew strongly to 43% of sales, up from 34%, supported by greater kiosk penetration and a reset of our delivery fee structure. KFC continued to lead its quick-service peers on Brand Index, brand buzz, satisfaction, and recommendation. Our new brand campaign, Go Full Chicken, together with KFC's new global visual identity, gives the brand a fresh look and voice that is appealing to today's consumers. We are now investing to unlock more value from every restaurant. We have embarked upon the natural rollout of Kwench by KFC, a new and exciting global beverages and dessert platform. We are extending our late-night trading hours and will commence breakfast trials in around 16 of our restaurants on the Gold Coast in September. Late night and breakfast together already account for more than a third of Australian quick-service spending and are among the category's fastest-growing day parts. Moving on to Europe. Europe, in FY 2026, delivered record revenue of AUD 350 million, up 12.5%, with underlying EBITDA up 14% to AUD 45 million and underlying EBIT up 95% to AUD 14.9 million. In Germany, same-store sales grew 3.7%, and in the Netherlands, restaurant-level EBIT margins improved from 6.7% to 8.5%. In the Netherlands, we chose network profitability as our key priority ahead of network growth. We extended and simplified our corporate franchise agreement, now running to the end of 2029. In Germany, we completed the acquisition of eight restaurants in and around Munich on the 1st of June, taking our network to 25 and making Collins Foods the largest KFC franchisee in the market by revenue. We also lifted our FY 2030 development target to between 45 and 90 additional restaurants. However, we will ensure we remain disciplined in how we allocate capital and that each development meets our investment hurdles. We are also investing in the market's development property and operational talent to ensure we deliver great restaurants to drive profitability as we grow. We also announced our exit from Taco Bell. I am pleased to confirm that in August, 20 restaurants were successfully transferred to the joint venture established between Taco Bell International and Restaurant Brands Australia. The remaining even restaurants were closed during FY 2026, with 4 leases successfully assigned to third parties and the other three well progressed. The material benefits of the transition will be reflected in the interim FY 2027 financial statements. Now, moving on to the trading update. The company sales in the first 17 weeks of FY 2027 were up 6.6% on the prior corresponding period on a constant currency basis. KFC total sales were up 6.4% in Australia, down 2.5% in Netherlands, and up 44% in Germany. KFC same-store sales were up 3.4% in Australia, up 3.4% in Netherlands, and down 5.3% in Germany. For the last four weeks, overall performance continued strongly in Australia and improved materially in Europe. KFC total sales were up 5% in Australia, +4.9% in the Netherlands, and +58% in Germany. KFC same-store sales were up 3.1% in Australia, +3.1% in the Netherlands, and basically flat in Germany. KFC Australia continues to perform strongly with strong same-store sales despite lapping an extremely strong Christmas in July activity in the prior year. Already, during this year's recent Christmas in July campaign, our team delivered successfully several weeks of all-time record sales. Moving forward, there's a very exciting growth plan in place, including impactful innovations and promotional windows, initiatives to drive volume in the core range, extended late-night hours with the rollout already well progressed, and the natural rollout of Kwench by KFC, a global beverage platform. We expect these initiatives will significantly strengthen organic performance. In addition, breakfast trials start in September in selected Gold Coast stores. We have so much to look forward to in KFC Australia. Our teams are very excited, and we are ready to execute well and with discipline. Europe, and specifically Germany, remains an exciting and material strategic opportunity for shareholder value creation, as highlighted by Mark. However, as reported when we released our full-year results and trading update, Europe started the new fiscal year softer than expected, reflecting general consumer confidence across the continent, a prolonged heatwave, and a demanding prior year lap arising from the "Squid Game" promotion. These issues impacted the whole KFC system, not just the Collins portfolio. Pleasingly, performance has strengthened significantly in both Germany and the Netherlands compared to the first eight weeks, with same-store and total sales both showing material improvement in trends. These improvements reflect more impactful promotional windows in both markets. Additionally, in the Netherlands, a halal-certified range of products was launched just a couple of weeks ago in several Collins restaurants, and early results have been extremely positive. Germany is a strategic market for both Yum! Brands and Collins. We believe our partnership can drive profitable growth and value creation. We acknowledge there is still more work to be done to deliver stronger, sustainable performance after Yum! Brands stepped back into its market leadership role, bringing its global experience, scale, and successful product platforms. We will continue to collaborate with Yum! Brands to build sales momentum and confidence in the German market. With respect to restaurant development, we will remain super disciplined with the investments we make, ensuring restaurants deliver the appropriate returns for shareholders. When we are confident sustainable same-store sales growth has resumed, we expect more restaurants will meet return hurdles, and growth in new store numbers will accelerate. Our focus on operational excellence in all markets to grow sales, profitability, and customer engagement remains undiminished, and we will be disciplined on costs and capital allocation. Our overall objective is to deliver outstanding experiences for our people and customers and strong shareholder returns. Thank you for your support, and I'll now hand the meeting back to the Chair. Thank you, Mark. Thank you, Xavier. Okay. I would like to now provide shareholders with an opportunity to ask a general question. As a reminder, questions relating to the formal business of the meeting will be addressed when we consider each item for business later in the meeting. As shown on the screen, shareholders joining online may ask a question by selecting the Q and A icon and entering their question in the text box. When you have finished, please click send. If you wish to ask a question verbally, please follow the instructions provided below the broadcast. For shareholders attending in person, please wait for a microphone before speaking so that everyone can clearly hear your name and question. I will now invite any general questions from shareholders in the room firstly, provided they do not relate to the formal business of today's meeting. Sure. Just wait for the mic, please. Hello, I am Richard Logan, shareholder. Just wondering what contingency plans you have in place for bird flu with chicken production— Yeah. —possibly affected. Thanks. Yeah, no, thanks, Richard. Good question, and one we are very aware of. Clearly, Yum! Brands, as our franchisor, also clearly across it, we are involved in all the risk meetings involved. The good news about Australia, because chickens are a protected industry in Australia, you are not allowed importation, so the biosecurity measures are the best in the world. There is lots of work going around in relation to obviously the farms themselves. Also should there be an issue in a local area, that they can activate supply movement around the whole country. So we are very confident the risk, although obviously the increasing number of avian flu is a factor out there, the impact on our supply chain, we believe, is extremely low. Any other questions from inside the room? We will now move to questions online, Tracey. Thank you. We have one question online under general questions. This is from Stephen Mayne. It is very unusual for a public company to lose two of its three female directors at the same AGM, particularly when neither is particularly long-serving. Seeing as Nicki Anderson is not at the meeting, could outgoing Audit Committee Chair Christine Holman please comment on why she believes this has occurred? Could the Chair then comment on how many new directors we are likely to be electing at next year's AGM and confirm that at least one of them will be female? Okay, I will first go with that, and Christine is welcome to provide a view on that. Yes, we have lost both our female chairs of the subcommittees. As you have seen, firstly, hello, Stephen. I should have acknowledged you first. My first question from you as Chair, maybe not the last, I am probably thinking over time. Your questions are always valued. Thank you. Yes. Well, as you have seen, we were very proactive with replacing Christine with Meredith, who is a very competent female based on, you see, on her history. Nicki has not seeking reelection for personal reasons. We are well advanced in recruitment for her replacement, which we intend to be a female as well. So we are quite aware of our responsibility for diversity, which we are proactively working on. The other directors, I believe Robert has already shared that next AGM, that he will not be re-standing, and at this stage, that is about it, Stephen. Again, I am welcome if Christine would like to come and comment on her departure. Yeah. I think you have summed it up really well. Yeah. Just one clarification, I think seven years is considered long-standing, is it? Yeah. Yeah, seven years, yeah, that's— Thanks, Stephen. I mean, Christine was always very open to us that she would only serve two terms. She said that when I met her five years ago, so her departure was not a surprise. There is no further questions on that item. Okay. Okay, before we move to the formal business of the meeting, I remind shareholders that voting remains open and that the poll will close at the end of question time. If you have not yet cast your votes, please do so now. As advised earlier, the notice of meeting dated 28th of July, 2026, together with the resolutions contained in the notice, is taken as read. The proxy results should now be displayed on the screen. As you can see from these proxy results, all resolutions currently before the meeting have received sufficient proxy support to be passed, subject to the outcome of the poll. The 2026 annual report comprises the financial report, directors report, sustainability and climate report, and the independent auditors report. The financial report has been approved by the directors and audited by Collins Foods Limited's independent auditor, PwC. In accordance with Section 317 of the Corporations Act 2001, I now lay before the meeting the financial report, directors report, sustainability climate report, and independent auditors report for the financial year ended May 26. With those reports, I will now invite questions for PwC or myself in relation to the conduct of the audit, the preparation and content of the auditor's report, the accounting policies adopted in the preparation of the financial statements, or the independence of PwC in relation to the audit. Are there any questions of me or the auditor in the room? No? Have we got some questions online, Tracey? We do. We have one question online. It is from Stephen Mayne. PwC has been the external auditor for Collins Foods since 2005. How many competitive tenders for the audit have we run during this 21-year run? When was the last competitive tender, and when is the next tender likely to occur? If there has been no tender, just say that rather than talking about five-year partner rotations, which we all know is the law. Thanks, Stephen. I will mention the five-year partner rotation, but that is not the only part, is that, yes, I have been on the board five years. While I have been on the board, we ran a robust process in 2025, where we interviewed, through the board, multiple possible alternatives to the audit firm. PwC was rehired, but obviously there was a partner change. Ben, this is his first year of the audit. He replaced Michael Crowe. So yes, we have the rotation, as required, but there was a robust tender in 2025. There are no further questions. Okay, thank you. I can do this without my glasses. As advised earlier, resolution two was withdrawn before the meeting, and accordingly is not being considered or voted on by shareholders today. We will now consider resolution three, being the election of Meredith Scott as a director of the company. As outlined in the notice of the meeting, Meredith Scott retires, and being eligible, offers herself for election for the board. Are there any questions from shareholders in relation to Meredith's appointment? None from the room. Any online? Yes, we have one question from Stephen Mayne. Could new director Meredith Scott and the Chair comment on the recruitment process that led to her appointment to the board? Which headhunting firm was involved? Did the full board interview any other candidates, and did Meredith know any of our directors or KMP before engaging with the recruitment process? Okay. Thanks for that. We did use a recruitment firm. It was Boyden, led by Allan Marks. All of the board met Meredith. We interviewed a large number of candidates. It was a very robust process through Boyden. There are no further questions, Chair. Thank you. I will now turn to resolution four, being the adoption of the remuneration report for the 2026 financial year. Are there any questions in the room regarding resolution four? None in the room. Any online? Yes, we have one question from Stephen Mayne. Which of the proxy advisors covered us this year, and did any recommend a vote against any of today's resolutions, including this remuneration report item? If so, what reasons did they give, and did this translate into any material protest votes? Okay, thanks again, Stephen. We consulted the proxy reports from Ownership Matters, ISS, CGI Glass Lewis, and ACSI. We had four proxy reports, and all four of them were unanimous fours, for all the resolutions. We did not have any recommendations against. There is no further questions on that item, Mr. Chair. Thank you. We will now consider resolution five, being the approval of the amended long-term incentive plan as described in the notice of the meeting. Are there any questions from shareholders regarding the resolution? There is none in the room. Any online? There is no questions on this item, Mr. Chair. Wow. I was on a 100% record there for— Get Stephen to up his game. I will now turn to resolution six, which seeks shareholder approval for the grant of performance rights to Xavier Simonet. Are there any questions from shareholders in relation to resolution six in the room? None in the room. Any questions online, Tracey? There's no questions on this item, Mr. Chair. Okay, thank you. Okay, well, that concludes the formal business of the meeting. As previously indicated, I'll shortly close the poll. If you have not yet cast your vote or if you wish to change your vote after hearing the questions raised and responses provided during the meeting, please do so now. For shareholders attending in person, members of the Computershare team will now collect the voting cards here in Brisbane. Okay, thank you. Once the poll is closed and the votes have been counted, the results of the meeting will be announced to the ASX and made available on the company's website. Are we okay? Okay. I now declare the poll closed. As advised earlier, the results of the poll will be released to the ASX as soon as practically possible following completion of the vote count. On behalf of the board, thank you for your attendance, your questions, and your continued support of Collins Foods. I now declare the meeting closed. Thank you.
Loading workspace