2 Things Investors Should Know About Berjaya Food Berhad

Have you ever bought a pancake from Jollibean outlets or ate sushi from Sushi Deli?

If you have, then you would be a customer of Berjaya Food Bhd (KLSE: 5196.KL), a Malaysia-listed company which owns a chain of food & beverage outlets that are mainly located in Malaysia, Brunei, and Singapore.

Here are two things that may interest investors about the company, which is also a subsidiary of the Malaysian conglomerate Berjaya Corporation Bhd (KLSE: 3395.KL).

Three business divisions

Berjaya Food has three main business divisions, namely, Kenny Rogers Roasters, Starbucks, and Jollibean.

The first division is where Berjaya Food runs the Kenny Rogers Roasters dining franchise. The company has worldwide franchise rights. There are currently around 100 Kenny Rogers Roasters restaurants across Malaysia.

The Starbucks division is responsible for Starbucks retail outlets in Malaysia and Brunei. Starbucks of course, is the well-known chain of coffee houses from the US-based Starbucks company. Berjaya Food currently runs over 215 Starbucks outlets in Malaysia and four in Brunei.

The Jollibean division houses a few F&B brands, namely, Jollibean, Sushi Deli, and Kopi Alley. In Berjaya Food’s latest annual report, the company stated that it has 33 Jollibean outlets, 12 Sushi Deli outlets, and 2 Kopi Alley outlets in Singapore.

As a brief background, Jollibean’s famous products are its soy milk drinks and pancakes (commonly known as “mee chiang kueh”). Kopi Alley is a traditional coffeeshop concept while Sushi Deli, as its name suggests, serves an array of sushi and assorted sashimi sets.

Strong historical growth

Berjaya Food is a company with a track record of growth.berjaya-food-business-table
Source: Company annual report

As the table above shows, Berjaya Food’s revenue has jumped over six-fold from its fiscal year ended 30 April 2012 (FY2012) to FY2016. Meanwhile, its profit has doubled.

FY2015 had a really high profit, but that was due to a one-time remeasurement gain of around RM159 million due to the consolidation of a subsidiary in the second-quarter of the year.

The company’s dividend has also been stable since its listing in 2011. It has ranged from RM0.03 per share to RM0.0575 per share.

At its current price, Berjaya Food has a price-to-earnings ratio of nearly 30.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Starbucks. Motley Fool Singapore writer James Yeo doesn’t own shares in any companies mentioned.