Berjaya Food Bhd.’s hundreds of Starbucks’ subsidiary outlets across Malaysia contributed to the company’s fifth straight quarterly loss after boycotts of U.S. fast food brands over America’s support of Israel’s offensive in Gaza began last year.
The company reported a net loss of 70.3 million ringgit for the six-month period that ended in December.
As of June 30 2024, the unit operated 408 Starbucks cafes in the country, according to the company’s annual report. Berjaya does not break out its Starbucks revenue.
Berjaya Food’s shares fell 2.9% to the lowest since Nov. 19 on Friday.
“While the Starbucks brand faces challenges, the group remains committed to growth and diversification by expanding its brand portfolio and leveraging opportunities locally and internationally,” Berjaya said in its earnings statement.” The company expects the strategic initiatives and plans for Starbucks “to enhance performance and drive positive results.”
Berjaya founder Vincent Tan in January said there was no reason to continue the Starbucks boycott after the Gaza ceasefire, Malaysiakini reported. Boycotting Starbucks does not affect Israel, he said.
Berjaya also operates the Kenny Rogers Roasters chain in Malaysia and the Paris Baguette brand in the Philippines.
The company “is well-positioned for further progress and stronger financial results,” it said.
Some customers have accused the coffee chain of not doing enough to pressure Israel to end its fighting in Gaza.
Starbucks chief executive officer Brian Niccol, during his first visit to the Middle East since becoming head of the company in September, said the boycotts were “not based on anything that’s accurate or true. We’ve never supported any militaries.”