"Berjaya Food keeping mum on impact of Starbucks Coffee boycott", 8 December 2023

Berjaya Food Bhd is keeping mum on its expansion plans and the impact of an ongoing boycott of Starbucks Coffee is having on its operations and plans.

Since the start of the Israel-Hamas conflict in October, BFood's share price has fallen 17 per cent. Year-to-date it is down more than 40 per cent...

In a response to queries on the matter, a BFood spokesperson said the company would like to maintain confidentiality on the matter and focus on ongoing operations.

On Wednesday, RHB Research issued a research note advising investors to sell their shares in its franchise owner, Berjaya Food due to worse-than-expected impact from the ongoing boycott and much needed to regain lost market share post-boycott recovery...

The recommendation came after RHB Research said its ground checks of Starbucks outlets showed at least a 30 per cent fall in foot traffic...

In response to Business Times' queries on whether the ongoing boycott had affected its Starbucks sales as well as expansion plan for the coffee chain, Berjaya Food replied briefly: "We wish to maintain confidentiality regarding the matter at this time, focusing on our ongoing operations."

RHB research...said that they may have underestimated the impact and intensity of the ongoing boycott – the consensus may have expected a short-lived boycott and, as such, a limited sell-off...

Hong Leong Investment Bank (HLIB) analyst Syifaa' Mahsuri Ismail said Berjaya Food has other concerns too. This includes foreign exchange (forex) as 55 per cent of the beverage costs purchased from the principal Starbucks International is dominated in US dollars...

Maybank Investment Bank Bhd, on the other hand, said Berjaya Food's 1QFY24 results were below its expectations, due to higher-than-expected operating expenses and weaker product mix...