BRISBANE - [AAP] Restaurant operator Collins Foods (ASX: CKF) is closing its fledgling Snag Stand business as it launches Taco Bell and focuses on its lucrative KFC restaurants.

Collins Foods has posted a 17.5 per cent fall in half-year profit to $12.7 million due to $4.7 million in one-off costs, including the closure of Snag Stand and the acquisition of more KFC stores from Yum! Brands.

Underlying net profit--before those one-off costs--was up 3.7 per cent and group revenue had risen 14 per cent to $322.1 million in the half year to October 15, compared to the same time a year ago.

Revenue from its core business, KFC Australia restaurants, had increased 8.5 per cent to $270.8 million with like-for-like sales up 1.2 per cent.

The group's Sizzler restaurants suffered a 23 per cent fall in revenue to $24 million.

Chief executive Graham Maxwell said the company would close its Snag Stand business by the end of the year--with the decision to end the business coming after a strategic review started in June.

Mr Maxwell said the group remains focused on growing the core KFC Australian business and has been pleased by the positive response to its newly opened Taco Bell store in Brisbane.

"We are excited by the early response to our first Taco Bell store that was recently opened, and will look to roll out another two stores in a considered fashion to ensure consumer acceptance before undertaking a major rollout of this chain."

Shares in Collins Foods were down 6.3 per cent, or 40 cents, to $5.84 at 1212 AEDT.

COLLINS FOODS HALF-YEAR RESULTS:

* Net profit down 17.5 pct to $12.7m

* Revenue up 14 pct to $322.1m

* Fully franked interim dividend is unchanged at 8 cents a share

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