Australian restaurant operator Collins Foods has reached a binding conditional agreement to hand over 20 of its 27 Taco Bell locations in the country to an affiliate of Yum! Brands and Restaurant Brands Australia.

The deal carries a “nominal” purchase price, along with the value of stock and cash floats, with the buyers assuming lease liabilities for the 20 sites.

Under the agreement, Collins Foods will hand over 20 outlets, along with any staff who agree to join the new owner.

The company will also be compensated for any net operating losses and necessary CapEx incurred for the outlets for the period from April 2026 to completion.

The move follows reports last year that Collins Foods is planning to exit the Taco Bell restaurant business in Australia.

With this deal, Collins Foods now intends to focus on its KFC business and operations in key markets, specifically Germany.

In a statement, Collins Foods added that finalisation of the deal is conditional. The purchasing parties must first complete negotiations on the terms specified in the agreement.

The proposed transfer is also dependent on several standard pre-completion requirements, including landlord consents, store-based employment threshold, and Australian Competition and Consumer Commission (ACCC) clearance.

If all conditions are fulfilled, the companies expect completion to fall within a window from June to August 2026, with the exact timing influenced by the pace of regulatory approvals.

The seven Taco Bell sites not included in the transaction are scheduled to be shut down in the near term. Collins Foods said it is in discussions with several parties to transfer the leases for these locations to new tenants.

Collins Foods managing director and CEO Xavier Simonet said: “Collins Foods is pleased to announce the transition of 20 Taco Bell restaurants to the brand owner, Taco Bell, and its local partner, subject to completion of the proposed transaction.

“This will enable Collins Foods to focus on our core KFC business in Australia and Europe, including accelerating profitable development in Germany.

“We are especially pleased that our team members working in the 20 transitioning Taco Bell restaurants will be offered continuity of employment and job security.”

"Collins Foods to offload 20 Taco Bell outlets in Australia" was originally created and published by Verdict Food Service, a GlobalData owned brand.

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