Herfy’s Q2 net profit falls short of forecast: Saudi Fransi Capital

Herfy Food Services Co.’s second-quarter profit missed Saudi Fransi Capital’s forecast by 21 percent and a consensus estimate by 20 percent, the brokerage firm said in a report.

The investment arm of Banque Saudi Fransi (BSF) maintained a “buy” rating on the company’s stock and kept its target price unchanged at SAR 140.

Saudi Fransi Capital added that Herfy has strong growth potential due to the solid performance of new restaurants it opened over the last nine months.

On Monday, the Saudi fast food chain reported a Q2-2015 net profit of SAR 46.3 million, 12 percent lower when compared to the same period last year.