I’m going to outline why the ASX share Collins Foods Ltd (ASX: CKF) is one of Australia’s top shares and has an appealing future for investors.

Collins Foods is a large KFC franchisee operator with sizeable outlet networks in both Australia and Europe.

In my view, there are not many ASX shares we can point to that are successfully growing in Europe, which is a large market with more growth potential than Australia due to its larger population.

I’ll outline three reasons this is such a compelling long-term idea.

Growing locally and internationally

The company regularly expands its KFC outlet count in Australia and Europe, enabling it to reach more customers and deliver greater scale benefits.

During FY26, it opened a net of seven stores in Australia (taking its count to 295 nationally), it grew by a net of one in the Netherlands and it opened one new restaurant in Germany.

The company is currently focusing on ensuring that new restaurants will be profitable during this economically challenging period for consumers. But it expects growth in the growth of new stores to accelerate.

In the four weeks before its AGM update, the company reported total KFC sales growth of 5% for Australia, 4.9% for the Netherlands and 58.8% for Germany. In my view, the company is making pleasing progress and this is helping revenue as well as its other financial figures.

Improving financials

I think one of the best signs of being one of Australia’s top shares is seeing profit margins increase as the company grows. Investors usually judge a business based on its net profit generation, and it’s the profit that pays for the dividend.

Everything that helps a company grow earnings sustainably is an excellent sign.

FY26 was a great example of the company’s ability to deliver rising profits.

During the 2026 financial year, revenue grew by 8.6% to $1.59 billion, underlying operating profit (EBIT) climbed by 10.1% to $130.7 million and underlying net profit after tax (NPAT) jumped 13% to $61.4 million.

As long as the company can continue delivering positive same-store sales growth, I’m optimistic about its ability to grow margins in the future.

The result helped the business fund a 7.7% increase of its annual dividend per share to 28 cents per share.

The valuation is appealing for one of Australia’s top shares

At the time of writing, the Collins Foods share price has fallen 23% in 2026 to date, making the business much cheaper for potential investors.

According to the projection on CMC Invest, the ASX share is now valued at 15x FY27’s estimated earnings and under 13x FY28’s estimated earnings. It could also pay a grossed-up dividend yield of 5.1%, including franking credits, for FY27.

Overall, I think this could be a great time to invest in Collins Foods shares for the long-term.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.3% to 8,696.5 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to drop

It looks set to be a tough session for Australian investors on Thursday following a disappointing night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 63 points or 0.7% lower this morning. In the United States, the Dow Jones fell 1.2%, the S&P 500 dropped 0.45%, and the Nasdaq was a fraction lower.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes A2 Milk Company Ltd (ASX: A2M), Flight Centre Travel Group Ltd (ASX: FLT), South32 Ltd (ASX: S32), and West African Resources Ltd (ASX: WAF). Flight Centre is rewarding its shareholders with a 30 cents per share fully franked dividend next month on 16 October.

Oil prices tumble

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a poor session after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 3.5% to US$102.07 a barrel and the Brent crude oil price is down 3% to US$105.62 a barrel. This follows reports that Saudi Arabia’s damaged pipeline will restart in the coming days.

Dyno Nobel on watch

Dyno Nobel Ltd (ASX: DNL) shares will be on watch today after the explosives company released an investor update. The company revealed that it is performing positively in FY 2026 and is on track to achieve its group guidance for a net profit after tax (before one-offs) of $325 million to $340 million. It also believes it is on track to deliver on its $600 million EBIT ambition in FY 2028. 

Gold price falls

It could be a subdued day for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price fell overnight. According to CNBC, the gold futures price is down 0.7% to US$4,302.2 an ounce. Traders were selling gold after the US Federal Reserve lifted interest rates.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
• Santos, Ramsay Health Care, and AMP shares reach new 52-week highs: Can they keep climbing?
• The ASX 200 is finally rising. Is the sell-off running out of steam?

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation provides a strong foundation for retirement. However pairing it with high yield ASX dividend stocks is a great way to diversify your income streams, generate additional passive income and potentially build greater financial security over the long term. 

By investing in established companies with a history of paying dividends, investors can potentially benefit from both regular income and long-term capital growth.

The average dividend yield for ASX 300 shares sits at approximately 3.5%. 

This acts as a solid benchmark for dividend investors and retirees to match or beat through ASX dividend stocks. 

Here are three options right now that can help provide passive income alongside superannuation. 

Centuria Industrial REIT (ASX: CIP)

Centuria Industrial REIT is a real estate investment trust that owns around four billion dollars of industrial properties. These include manufacturing facilities, distribution warehouses, and data centres.

As Australia’s largest pure-play industrial property investment vehicle, it has gained a reputation as a high yielding stock. 

It may appeal to income-focused investors because it provides exposure to Australia’s industrial property sector while generating regular rental income from its portfolio. 

It also offers quarterly distributions, providing a more consistent income flow than other stocks. 

The trust also benefits from a portfolio of industrial properties leased to tenants across Australia, with high occupancy and relatively long lease terms supporting the underlying rental income.

At the time of writing it offers a dividend yield of approximately 6%. 

Atlas Arteria Ltd (ASX: ALX)

Atlas Arteria is another option for income investors to consider.

The company provides exposure to a portfolio of long-term infrastructure assets, including major toll roads in France, Germany and the United States. 

The group’s toll-road concessions generate recurring revenue from motorists using these assets, providing a foundation for distributions to investors. 

It is expected to maintain its distribution at 40 cents per share, in line with current-year guidance, which equates to a yield of over 8%. 

BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX)

An alternative to individual ASX dividend stocks is an ASX ETF focused on generating high yields. 

One option is this Betashares fund.

It aims to generate attractive monthly income and reduce the volatility of portfolio returns by implementing an equity income investment strategy over a portfolio of the 20 largest blue-chip shares listed on the ASX. 

This monthly distribution is a great vehicle for passive income for retirees. 

It currently has a 12-month gross distribution yield of over 9%, making it one of the highest-yielding funds available right now. 

The post 3 ASX dividend stocks to provide passive income through retirement  appeared first on The Motley Fool Australia.

More reading

• How much superannuation do I need to earn $70,000 per year in passive income?
• 2 ASX blue-chip shares offering big dividend yields
• How much is needed in superannuation to target a $6,500 monthly passive income?
• 3 ASX shares with dividend yields of between 6% and 11%
• How much superannuation do I need to earn $80,000 per year in passive income?

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.