See: Jumbo opens first Singapore mall-based restaurant outlet at ION Orchard
The opening of Jumbo in ION comes before its seasonally strong Jan-Mar quarter, which historically fetches about 27-29% of full-year sales for the group.
Currently, the Jumbo outlet occupies ober 5,400 sq ft in ION Orchard, with a seating capacity of 160, including four VIP rooms.
Including this new outlet, there would be a total of 17 Jumbo Seafood outlets across Asia, with six in Singapore.
In a Thursday report, analyst Colin Tan says, “Despite the store’s location at a prime shopping mall, we understand from management that Jumbo has secured the retail space at a favourable rental cost and it could see profit margins similar to other Singapore JUMBO Seafood outlets apart from the one at the National Service Resort & Country Club.”
Jumbo’s overall rental costs accounted for approximately 10% of its total operating costs in FY18, lower than the national average of 17.9% in 2016.
As at 11.30am, shares in Jumbo are trading at 39 cents or 3.6 times FY19 book with a dividend yield of 3.5%.
