Collins Foods Limited is one of Australia’s largest restaurant operators, owning 171 KFC restaurants, 26 Sizzler restaurants, and 6 Snag Stand stores. The company has a proven business model that we consider highly defensive, with average same-stores sales growth of 4.8% over the last 14 years. This offers positive medium-term earnings growth, with a 3-year EPS CAGR of +9%, led by a reinvestment program of restaurant refurbishments and new restaurant openings. Management and the board retain an acquisitive stance, flagging potential acquisitions in a new retail vertical with the possibility for a domestic roll-out. We view Collins Foods as fundamentally cheap, trading at a significant discount (-50%) to its international peers and ~30% discount to its closest local listed peer, Restaurant Brands (RBD.NZ). We initiate coverage on Collins Food Group (CKF) with a BUY rating, and 12-month price target of $5.22ps (current price $3.69): You can read our initiation research in full here: (VIEW LINK)