Collins FoodsCLLFF 82 WACC % is 2.99% as of Jun. 25, 2026, which is 38% below its 10-year median of 4.81. GuruFocus rates CLLFF with a GF Score™ of 82/100 and a GF Value™ of $8.37. The stock has 4 warning signs investors should review. Among 369 Restaurants companies, Collins Foods ranks worse than 52.03% on this metric.
As of today (2026-06-25), Collins Foods's weighted average cost of capital is 2.99%%. Collins Foods's ROIC % is -0.98% (calculated using TTM income statement data).
Collins Foods earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Collins Foods (OTCPK:CLLFF) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Collins Foods's weighted average cost of capital is 2.99%%. Collins Foods's ROIC % is -0.98% (calculated using TTM income statement data).
Collins Foods earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
Collins Foods WACC % Historical Data
* Premium members only.
The historical data trend for Collins Foods's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Restaurants subindustry, Collins Foods's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Collins Foods WACC % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Collins Foods's WACC % distribution charts can be found below:
* The bar in red indicates where Collins Foods's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Collins Foods's market capitalization (E) is $682.120 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Apr. 2025, Collins Foods's latest one-year semi-annual average Book Value of Debt (D) is $554.8653 Mil.
a) weight of equity = E / (E + D) = 682.120 / (682.120 + 554.8653) = 0.5514
b) weight of debt = D / (E + D) = 554.8653 / (682.120 + 554.8653) = 0.4486
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.99%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Collins Foods's beta is -0.1403.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.99% + -0.1403 * 6% = 4.1482%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Apr. 2025, Collins Foods's interest expense (positive number) was $28.122 Mil. Its total Book Value of Debt (D) is $554.8653 Mil.
Cost of Debt = 28.122 / 554.8653 = 5.0683%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 14.614 / 21.155 = 69.08%.
Collins Foods's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.5514
*
4.1482%
+
0.4486
*
5.0683%
*
(1 - 69.08%)
=
2.99%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Collins Foods (CLLFF) has a WACC % of 2.99% as of Jun. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Collins Foods and its competitors. This is 38% below median its historical median of 4.81. Over the past decade, Collins Foods' WACC % has ranged from 2.79 to 8.39. According to the industry distribution chart, Collins Foods ranks #192 out of 369 companies in the Restaurants industry, placing it in the top 52%.
Is Collins Foods' WACC % too high?
Collins Foods' current WACC % of 2.99% is 38% below median its 10-year median of 4.81. Over the past 10 years, this metric has ranged from a low of 2.79 to a high of 8.39. The Restaurants industry median WACC % is 5.64. Collins Foods' value of 2.99% is 47% below this industry median. Based on the distribution chart, Collins Foods ranks #192 out of 369 companies in the Restaurants industry, which is below the industry midpoint. Overall, Collins Foods has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Collins Foods' WACC % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Collins Foods ranks #192 out of 369 companies for WACC %. This places Collins Foods in the lower half of its industry. The industry median WACC % is 5.64. Collins Foods' value of 2.99% is 47% below this benchmark. Historically, Collins Foods' own WACC % has ranged from 2.79 to 8.39 over the past decade. While the company's 10-year median is 4.81 vs. the industry median of 5.64, Collins Foods has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Restaurants company?
The median WACC % among Restaurants companies is 5.64, based on 369 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Collins Foods's current WACC % of 2.99% is 47% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Collins Foods and its competitors. For the Restaurants industry, the median WACC % is 5.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Collins Foods's current WACC % is 2.99%, which is 38% below median its own 10-year median of 4.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Collins Foods stock overvalued right now?
Collins Foods (CLLFF) has a current WACC % of 2.99%. The stock's GF Value™ is $8.37, compared to a current price of $6.90 — trading 17.6% below its estimated fair value. The current WACC % is 2.99%, which is 38% below median its 10-year median of 4.81 and 47% below the Restaurants industry median of 5.64. Collins Foods' overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Collins Foods (CLLFF), the current WACC % is 2.99% as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Collins Foods (CLLFF) Overvalued in 2026?
Based on GuruFocus' analysis, Collins Foods stock appears to be undervalued.
The current stock price of $6.90 is trading 17.6% below its estimated GF Value™ of $8.37.
Key valuation signals for CLLFF:
WACC %: 2.99% (38% below median its 10-year median of 4.81)
GF Value™: $8.37 vs. price of $6.90 (17.6% below fair value)
Industry Position: 47% below the Restaurants median (#192 of 369)
No single metric tells the full story. See the CLLFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Collins Foods is an operator of quick service restaurants, or QSRs. It franchises restaurant brands from US-listed Yum Brands, including KFC in Australia, Germany, and the Netherlands. Revenue and earnings are largely generated in Australia, where Collins is the largest KFC franchisee. Earnings growth is underpinned by its store network expansion, both new restaurants and acquisitions of existing sites. Competitive pricing is key to maintaining share in the QSR market, and the company has generally increased at or below consumer price index growth.
82GF Score
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