PETALING JAYA: Empire Premium Food Bhd remains attractively valued against its growth prospects with a strong store expansion pipeline and healthy demand, according to CIMB Research.
It said the group’s revenue growth was supported by strong customer traffic and continued outlet expansion.
The research house noted that higher transaction volumes more than offset the slight decline in average customer spending in the first quarter of financial year 2027 (1Q27).
The owner-operator behind the Empire Sushi brand maintained healthy demand for its products, with its grab-and-go format as a key revenue contributor, the research house highlighted.
“Empire Sushi opened eight new stores in 1Q27 (six grab-and-go and two quick dine-in outlets), bringing its total store count to 151, comprising 133 grab-and-go and 18 quick dine-in outlets.”
CIMB Research said the group’s walk-in customers at grab-and-go and quick dine-in outlets continued to dominate the revenue mix in 1Q27, accounting for 90% of 1Q27 group revenue, while food delivery contributed the remaining 10%.
The grab-and-go outlets made up the 86.4% majority of sales, while quick dine-in outlets contributed the remaining 13.6%.
The research house pointed out that the grab-and-go outlets generated an average basket size of RM25.5 in 1Q27.
However the average basket size dipped 2.6% quarter-on-quarter to RM20.50, owing to seasonality as customers typically purchase more during festive periods, CIMB Research pointed out.
The research house also highlighted that ongoing mall renovation works are impacting operations, curtailing sales at two existing grab-and-go outlets. “The two locations typically generate a combined average of about RM500,000 in monthly revenue.”
Looking ahead, Empire Premium expects its store expansion to continue, as it targets six new stores in 2Q27.