Starbucks shares rise despite Malaysian operator's losses

Starbucks (SBUX) shares gained fractionally despite a Malaysian operator, Berjaya Food Bhd, reporting a net loss that more than tripled and revenues fell 36%. The operator attributed the decline to the ongoing Middle East conflict and took a "necessary impairment provision" on its balance sheet. Analysts have a Moderate Buy consensus rating on SBUX stock with an average price target of $100.68, implying 14.09% upside potential.

Starbucks (SBUX) shares experienced a slight gain today despite a significant setback for its Malaysian operator, Berjaya Food Bhd. The operator reported a record net loss, more than tripling from the previous year, and a 64% slump in revenue. The decline was attributed to the ongoing Middle East conflict and the company took a "necessary impairment provision" on its balance sheet [1].

The net loss for Berjaya Food widened to 292 million ringgit ($69 million) for the financial year ended June, from 91 million ringgit the previous year. Revenue slumped to 477 million ringgit, down 64% from the prior year. The number of Starbucks outlets in Malaysia has fallen to 320 currently from about 408 in June 2024 as some shops were closed amid declining revenue [1].

Despite the challenges faced by the Malaysian operator, analysts maintain a Moderate Buy consensus rating on SBUX stock with an average price target of $100.68, implying 14.09% upside potential. This rating is based on the opinions of 26 analysts, with 15 giving a buy rating and 1 a strong buy rating [2].

The company has focused on diversifying into local and overseas markets while consolidating stores domestically to strengthen core operations and establish a solid foundation for sustainable growth. Berjaya Food began its licensed partnership with Starbucks in December 1998 with an outlet in Kuala Lumpur and has since expanded its portfolio to include South Korean bakery-café chain Paris Baguette and Kenny Rogers Roasters [1].

References:
[1] https://www.forbes.com/sites/ardianwibisono/2025/08/28/starbucks-boycott-in-malaysia-pushes-tycoon-vincent-tans-berjaya-food-to-record-loss/
[2] https://www.marketbeat.com/stocks/NASDAQ/SBUX/forecast/