Sunday, October 12, 2014

BFood ... A Giant Franchise In The Making !!!

It has doubled in value over the past three months prior to 10 Oct 2014 but observers reckon that there is still more potential upside for the company that runs Kenny Rogers Roasters restaurants as well as Starbucks Malaysia and Jollibean outlets in Malaysia.

It is a giant franchise in the making.

It is projected to see its compound earnings annual growth rate of 49%.

It holds franchise rights to Kenny Rogers Roasters in Malaysia, Indonesia and Cambodia, starbucks in Malaysia and Brunei and owns Jollibean worldwide – is 51% owned by Berjaya Corp Bhd. The latter

owns franchise rights to Wendy’s, Papa John’s, KRR China and Krispy Kreme – businesses could be injected into BJFood once they turn profitable.

First in the pipeline could be Papa John’s pizza in two years from Oct 2014. BJFoodwill see another earnings boost from distributing Starbucks branded products in supermarkets.

Starbucks Malaysia will overtake contributions from KRR restaurants in BJFood’s total sales going forward, upon consolidation of its numbers following the completion of its rm71.8 million acquisition of the remaining 50% of Starbucks Malaysia of Sept 18 2014.

Assuming BJFOod owns 100% of Starbucks Malaysia in FY2014, the latter should account for 67% of BJFood’s total sales, pushing KRR Malaysia’s contributions from 65% to 21.6%.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.