** Morningstar analysts say Australian KFC operator Collins Foods' CKF.AX margin growth is constrained due to competition and delivery costs

** Co on Tuesday posted a fivefold jump in FY net profit attributable to A$44.2 million ($30.58 million)

** Morningstar said earnings met expectations, but EBITDA margins, which analysts expected would expand to 21%, have reset lower at ~19%

** It expects strong growth in lower-margin delivery sales to be a structural headwind in Australia

** Adds although benefits from rising sales and operating efficiencies may offset cost inflation and margin dilution, Morningstar no longer expects gross margins to recover meaningfully with competition constraining price hikes above inflation

** Notes "solid" Australian same-store sales growth so far in fiscal 2027; says weaker European sales likely reflect temporary factors such as geopolitics and unsuccessful limited-time offers

** Shares closed 2.5% lower after results were announced Tuesday, bringing YTD losses to over 21% YTD

($1 = 1.4453 Australian dollars)