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Quick Summary Boycott pressure remains a key overhang  on  Berjaya Food Bhd , despite recent operational improvements Losses are expected to persist for several years , according to  CIMB Securities Same-store sales improved , but competition and rising costs could weaken 2HFY2026 “Reduce” rating maintained  with a target price of  20 sen What CIMB Is Saying CIMB Securities warned that  ongoing local and nationwide boycotts  continue to cloud Berjaya Food’s outlook, even as the group posted  narrower quarterly losses . While  1HFY2026 results met expectations , the research house expects  a weaker 2HFY2026 , citing: Intensifying competition  in the F&B space Higher operating expenses , particularly from marketing and promotions needed to defend market share Key risk:  Any aggressive promotional push could  further strain margins . Financial Snapshot (2QFY2026) Net loss:   RM11.9m  (vs  RM14.6m  in 1...

 Big Tech in Focus Meta (META), Microsoft (MSFT), Qualcomm (QCOM), Ford (F), and Robinhood (HOOD)  are all set to report earnings after the market closes. Hershey (HSY)  and  Kraft Heinz (KHC)  will post their results before the opening bell. SoFi (SOFI) The fintech company announced a  $1.5 billion public stock offering . Shares dropped  7% premarket  after hitting a record high Tuesday, following better-than-expected earnings and raised guidance. Sarepta Therapeutics (SRPT) Shares  jumped 10% premarket  after the FDA allowed shipments of its gene-therapy drug  Elevidys  to resume. Starbucks (SBUX) Shares gained  4% premarket  despite missing earnings estimates. The coffee giant is  investing $500 million in staffing and ditching pickup-only stores  to combat slumping sales. Visa (V) The credit card company beat forecasts on strong consumer spending. Despite solid results, shares were down  nearly 2% p...

The union representing over  10,000 Starbucks baristas  announced strikes in  Los Angeles, Chicago, and Seattle starting Friday, citing unresolved issues around wages, staffing, and schedules. The five-day strike is the latest in a series of escalating labor actions across service industries. Key Points Strike Scale:  Workers United, the union representing Starbucks employees at  525 stores , plans to escalate walkouts, potentially involving  hundreds of stores  nationwide by Christmas Eve. Negotiation Deadlock: Talks began in April under a February framework, with  nine bargaining sessions  and agreements on  30+ topics  to date. The union rejected Starbucks' offer of no immediate wage hike and a 1.5% increase in future years, calling it insufficient. The union is demanding a  64% immediate wage increase  and  77% over a three-year contract , which Starbucks deems "unsustainable." Broader Labor Context Rising Labor A...

Key Takeaway: Berjaya Food Bhd reported a net loss of RM33.68 million for its first quarter ended Sept 30, 2024, as the anti-Israel boycott continues to impact its Starbucks operations in Malaysia. Berjaya Food Bhd (BJFOOD) announced its fourth straight quarter of losses , citing the prolonged impact of the Middle East conflict and associated boycotts affecting consumer sentiment. The company, which manages the Starbucks coffee chain in Malaysia, saw its quarterly revenue plummet over 50% to RM124.19 million from RM278.53 million a year ago, with no dividend declared for the period. The group remains cautiously optimistic about gradual recovery and is focusing on strengthening its core businesses, which include Kenny Rogers Roasters (KRR) and Paris Baguette in Malaysia and the Philippines. Berjaya Food’s shares dropped 6.8% to 41 sen on Thursday, leaving its market value at RM798.53 million and marking a 30% decline this year .

  Berjaya Food Bhd (KL) announced on Wednesday that it has signed a master franchise agreement to exclusively operate Paris Baguette stores in Brunei and Thailand . The company plans to open multiple stores across both markets by quarter three of 2025 . Paris Baguette, the flagship brand of South Korean food company SPC Group , specializes in French-inspired bakery products . Berjaya Food’s expansion reflects its strategy to tap into the growing café culture in these regions and broaden its international footprint amid pressures on its key Starbucks franchise in Malaysia . This move follows Berjaya Food’s launch of Paris Baguette in the Philippines , with its second store opening in September 2024. The company already operates eight Paris Baguette stores in Malaysia and two in the Philippines , and has plans to expand into Singapore as well. "We are excited to extend Paris Baguette’s reach into Brunei and Thailand," said Datuk Sydney Quays , CEO of Berjaya Food. The com...

Starbucks' operational improvements helped the coffee giant meet Wall Street expectations for quarterly profit, even as global sales declined due to persistent weakness in consumer spending in its key markets, the US and China. Key Highlights: Quarterly Profit: Profit of 93 cents per share met LSEG estimates. Operational Efficiency: Starbucks rolled out the Siren System plan, updating equipment to increase service pace, deployed across US-operated stores. The company aims to have the system in less than 10% of global stores by year-end. Operating Margin: Fell by 70 basis points in the third quarter, a sequentially smaller drop. New Store Openings: Opened 526 new stores in the quarter. Market Reaction: Starbucks' shares, down 22% this year, rose 5% in extended trading after executives reaffirmed annual forecasts. Consumer Strategies: In response to cost-conscious consumers, Starbucks introduced discounts and promotions, including a coffee or tea paired with a butter croissan...

SELL CALL with unchanged target price (TP) of RM1.55 Comments As anticipated, revenue of BFood’s Starbucks Malaysia operations is growing steadily. However, Starbucks’ EBIT margin has been depressed due to the weakening of the MYR against the USD. This is due to BFood purchasing certain raw materials from Starbucks Corp (USA) such as coffee beans, frappuccino mix and syrup which are denominated in USD. These materials account for between 40-50% of Starbucks Malaysia’s COGS. Therefore, given the recent renewed MYR weakness to ~RM4.20/US$, Starbucks Malaysia’s margins will remain depressed. This effect is illustrated over the previous six quarters (Figure 1). In FY17, BFood has closed one unprofitable KRR Indonesia restaurant and plans to continue to close loss-making outlets. Further closures of will reduce BFood’s effective tax rate as currently losses overseas cannot be offset back home in Malaysia, resulting in an inflated effective tax rate. Ready to Drink (RTD) S...