Investing.com-- Shares of Collins Foods Ltd (ASX: CKF ) surged over 20% on Tuesday to their highest level in nearly a year, after the fast-food operator posted resilient full-year earnings and flagged improving sales momentum into the new fiscal year.

For the year ended April 27, Collins Foods reported a 2.1% rise in revenue from continuing operations to a record A$1.52 billion ($970 million), supported by solid growth in its KFC Australia division.

Underlying EBITDA was stable at A$228.5 million, while underlying net profit after tax fell 14.8% to A$51.1 million due to increased depreciation and cost pressures in the first half.

Shares of the company surged as much as 26% to A$9.15, their highest level since early August 2024. The stock was trading 17.5% higher at A$8.57 as of 01:00 GMT.

CEO Xavier Simonet said same-store sales growth had improved in the second half in both Australia and the Netherlands, aided by easing input cost inflation and strong brand campaigns.

Early FY26 trading showed KFC Australia sales up 4.9%, with group NPAT expected to grow in the low to mid-teens percentage range, the company said.

The board declared a fully franked final dividend of 15.0 Australian cents per share, bringing the full-year payout to 26.0 cents.

Earlier this year, the company said it intends to exit the struggling Taco Bell restaurant business within a year and shift focus toward expanding its KFC presence in Germany.