If you are sniffling around the board to look out for some worthy food-based stocks, there is the ubiquitous Old Town Coffee and the healthy Kenny Rogers franchise under Berjaya Foods Berhad (BJ Foods). Then there is the Sushi King outlets under Texchem and A and W under KUB. As for foods for the home, there is the heftily priced Nestle,Dutch Lady and F & N.
The food stocks that have disappeared are the food and beverage division of CI Holdings which is sold to Asahi Foods of Japan. KFC and QSR has just been privatised.
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| Quick cash, quick food dispensing |
Then we have Wendy's, Papa Joe's pizza as well as Krispy Kreme Doughnuts which may be pumped into BJ Foods when the time is right.
Let us look at what BJ Foods just swallowed hook, line and sinker- Jolibean.
Bought with cash of RM18.77 million, Jollibean has 35 outlets, 14 Sushi Deli, 4 Kopi Alley and 2 Django outlets in Singapore. By March, BJ Foods will set up outlets in Berjaya Time Square, the Curve and at Sunway Pyramid.
Jollibean outlets will dispense food from a 200 to 250 square feet kiosk. Each will cost an investment of RM 200,000-300,000.
BJ Foods plans to open outlets in China, Indonesia and the Philippines. for China the target cities to start with are Shanghai and Guangdong.
The acquisition will not have any impact on revenue and profits in FY2013 but will do so in F1Q2014.
BJ Foods have forecasted that for the next 3 years it will chalk up a robust compound annual growth of 46% in FY2015.
In Singapore, Jollibean will open 5 new outlets and are currently closing down 3 unprofitable ones.
AmResearch is confident that BJ Foods will go far with its regional presnce in the fast food franchise business.
So, would you invest in this counter or even accumulate them when the prices are attractive?
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