See how BreadTalk Group's margin declines are turning off investors

Low dividend yields also making it unattractive.

BreadTalk Group faces the risk of driving investors away if it does not address the declining margins in the next few quarters, especially given the fact that the stock promises to deliver low dividend yields.

"To be clear, BreadTalk has a capable management team that has grown the business considerably over the years. However, we feel that the group has to address margin declines sooner than later," said OCBC Investment Research.

"Unless that action is taken, investors are likely to see continued margin compression in the coming quarters from higher interest and operating expenses, and dividend yields are also expected to remain unattractive at ~1%," it added.