Food Junction

[dydx]

I find today's (7Sep11) announcement by Japan Foods Holding on the introduction of a new-concept Japanese food stall "Botejyu Yatai" in FJ's food court at Bugis Junction, with 3 more similar stalls planned and to be opend later this year in FJ's 3 other food courts at United Square, Junction 8, and Great World City, most interesting....
http://info.sgx.com/webcoranncatth.nsf/V...400077F5C/$file/PressRelease_Corporate_Update.pdf?openelement

This development is certainly good for FJ, as it will bring in a new source of regular revenue from a good-name F&B operator, and hopefully some good profits as well. It should also enhance the food and stall profile of the 4 FJ food courts. It also shows FJ's management is proactive in coming out with new and better business ideas, and takes on a flexible approach towards business development - including working with a local competitor and another F&B operator in this case.

I just wonder why JFH chose FJ and didn't go for BreadTalk's Food Republic food courts?

[dydx]

Have fellow forumers tried FJ's seemingly successful "MEDZS" Mediterranean-style higher-end food court located at Orchard Central's Basement 2? MEDZS' latest promotion targeted at the young, in conjunction with their brand-awareness advertisement on buses and certain SBS bus routes.....
http://www.foodjunction.com/

MEDZS' other current promotion offers....
http://www.foodjunction.com/promotions/

[dydx]

Today (14Sep11), FJ bought back another 120 lots and raised the buying price to $0.20 (from $0.192 in their last buy-back purchase on 22Aug11).....
http://info.sgx.com/webcorannc.nsf/Annou...endocument

Is the increased optimism as reflected in the higher buy-back price an indication of some better things to come for FJ?

[dydx]

FJ has incorporated another new subsidiary - Medzs (Singapore) Pte Ltd - possibly to expand its quite successful Mediterranean-themed food court business which now has only 1 outlet at B2 of Orchard Central .....
http://info.sgx.com/webcoranncatth.nsf/V...E003B7E67/$file/111003-Incorporation_of_subsidiary.pdf?openelement
Meanwhile, Medzs continues to run attractive promotions to promote the Medzs brand....
http://www.foodjunction.com/promotions/

On 5Oct11, FJ resumed buying back its own shares and bought another 40 lots at $0.19/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument
Todate, FJ has bought back a total 3,162 lots, or 2.5% of its total issued shares.

[Musicwhiz]

A profit warning just released by Food Junction today. Should shareholders be concerned?

http://info.sgx.com/webcoranncatth.nsf/V...50036E536/$file/111010-FJH-Early_Profit_Warning_announcement.pdf?openelement

(Not Vested)

[karlmarx]

the foodcourt business is tough, and it isn't helping that FJ's restaurants are barely profitable.

it was mentioned earlier that breadtalk is a better manager of foodcourt business. we can't be sure about that since BT doesn't breakdown their profits by division.

i think coffeeshop businesses are easier to turn a profit.

[Drizzt]

oh f***

[dydx]

I suppose it is reasonable to expect that any loss recorded in Q3 due to the cessation of Malones Café and Restaurant operation in Suzhou, China, will likely be more of an accounting loss, and less of a cash loss. We should look at it as more like an one-off event.

After all the share buy-back since 10Dec10, FJ is now left with only 126.47m outstanding issued shares. Based on the last done share price of $0.19, Mr Market is now attaching a market cap. of only $24.0m on FJ - this can't be right!

[donmihaihai]

It is an one-off event but it is not merely an accounting loss.

Fixed Assets related to the restaurant will be written off in accounting term. I.e losses without any cash outflow. But let not forget X amount of money invested in a restaurant that does not generated profit is real losses. Next termination of tenancy lease agreement mean forfeit of rental deposit plus plus plus depand on how they decided to part. Real money involved too.

Anyway what is the surprise? Anyone who read the earlier announcement will understand that something is coming.

"The cessation of Malones operation in Suzhou is expected to have an adverse material financial impact on the financials for the third quarter ending 30 September 2011 and financial year ending 31 December 2011"

[d.o.g.]

it was mentioned earlier that breadtalk is a better manager of foodcourt business. we can't be sure about that since BT doesn't breakdown their profits by division.

Breadtalk does provide segmental results for the bakery, restaurants and food courts business.