The research house, which has a "hold" recommendation on the stock, said Berjaya Food's core net profit of RM10.4mil exceeded its and consensus estimates at 78.7% and 51% of full-year estimates respectively.
"This was due to the group’s effective cost management implemented to mitigate the impact of the pandemic and improved performance from Kenny Rogers Roasters (KRR) after the closure of non-performing stores in FY20," it said.
Revenue for the quarter meanwhile came in at RM180.7mil which was 23.9% and 24.2% of AmInvestment's and consensus estimates, which was comparable to that of the previous corresponding quarter, suggesting that revenue had returned to pre-Covid-19 levels.
AmInvestment expects Berjaya Food's 2QFY21 sales to only be marginally impacted by the reimplementation of the CMCO.
"2Q is usually BFood’s best performing quarter due to the holiday season. Also, economic activities are still continuing, which means stores remain open in contrast to the MCO period," it said.
"Moving forward, we believe BFood’s sales growth would be driven largely by the recovery in SSSG as the Covid-19 situation improves.
"We expect earnings to normalize at the end of the CMCO period and new store openings would also drive sales for the group. BFood plans to open an additional 12 Starbucks stores and 5 ssKRR stores in FY21F," it added.
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