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Tag: Jollibee Foods

  • Jollibee Foods Corporation gears up to open 600 stores this year

    Jollibee Foods Corporation gears up to open 600 stores this year

    Home-grown fast food giant Jollibee Foods Corp. (JFC) is planning to expand its global presence by opening up to 600 new stores this year.

    In a Thursday disclosure to the Philippine Stock Exchange, JFC said it plans to open 550 to 600 owned and franchised stores in 2023.

    With this, the company expects its capital expenditures to range from P17 billion to P19 billion this year.

    This year, the quick-service restaurant chain’s expansion plan could be the biggest in its history, exceeding the record 542 stores openings in 2022.

    At the end of 2022, JFC operated 6,480 stores worldwide —3,285 in the Philippines and 3,195 internationally.

    The company booked a net income of P7.338 billion in 2022, up 33.4% from P5.502 billion in 2021 driven by P211.9 billion in revenues, which grew by 38% year-on-year.

    “Looking ahead, while we expect macroeconomic challenges to persist in 2023, we are confident that the JFC Group is resilient and well-positioned to drive near-term growth. We have clear priorities on profitability while we continue to invest strategically to deliver long-term growth and value for our shareholders,” said JFC CEO Ernesto Tanmantiong.

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  • Jollibee Foods taking acquisition path to China, US

    Jollibee Foods taking acquisition path to China, US

    Fast-food chain Jollibee Foods Corporation is seeking acquisitions to accelerate expansion plans in China and the US.

    Targets could include other fast-food chains as well as fast-casual restaurants like Smashburger, the US franchise of which Jollibee owns 40 per cent, says president Ernesto Tanmantiong.

    “We are looking at the world arena. Acquisition is part of our growth strategy.”

    Jollibee is on track to meet its goal of doubling profit in the five years through to 2019, and Tanmantiong says he now wants it to be one of the five biggest restaurant chains by market capitalisation globally. Its current market value is US$5.2 billion.

    Jollibee runs more than 3500 stores globally, with its best-selling item being Chickenjoy. Three-quarters of its outlets are in the Philippines.

    “We are optimistic with the future of the Philippine market,” says Tanmantiong. “Major pillars will still be the Philippines, China and US, though we don’t close our door to opportunities in other geographic areas.”

    Filipino diaspora focus

    Its expansion plans focus on overseas locations that have a concentration of Filipinos, like California, Florida, Guam and Hawaii. The chain opened its first Florida store in March, making it the 36th outlet in the US.

    Jollibee spent $100 million for its stake in Smashburger in 2015, which had 362 stores in the US at the end of June. The Philippines company has completed 12 deals valued at about $301 million since 2010, according to Bloomberg data, and has considered about 20 potential acquisitions during the past two years.

    While it is reportedly considering a bid for UK sandwich chain Pret A Manger, Tanmantiong says the company hasn’t made any bids in recent months. He became president/CEO in 2014. His older brother, Tony Tan Caktiong, founded the chain as an ice-cream parlor in Quezon City in 1975.

    Jollibee’s Chinese businesses include Hard Rock Cafe and it own outlets in Hong Kong, and on the mainland such brands as Dunkin’ Donuts, noodle chain Yonghe King and congee outlet Hong Zhuang Yuan.

    “China is now one of the highest growth areas in our business,” says Tanmantiong.

    The company also wants to take its Philippine chicken barbecue chain Mang Inasal and its Chinese restaurants global.

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  • Jollibee Foods takes over processing unit

    Jollibee Foods takes over processing unit

    Asia’s largest fast food player -Philippines-based Jollibee Foods, is seeking to take full control of China’s Happy Bee Foods Processing.

    The Manila company will buy an extra 30 per cent stake for US$10.4 million.

    Jollibee, which now has a 70 per cent stake in Happy Bee, acquired a 40 per cent share of US-based restaurant brand Smashburger for $99 million last October. It is continuing to scour the region for acquisition targets, with as it pursues its goal of becoming one of the world’s top 10 fast-food brands.

    Jollibee VP Valerie Amante has told the stock exchange its wholly-owned subsidiary Jollibee Worldwide (JWPL) entered into an agreement with Hua Xia Harvest Holdings to acquire its 30 per cent equity shareholding in Happy Bee, which is their joint venture entity.
    Hua Xia will be selling its 3,518,018 shares in Happy Bee at $2.96 a share. Jollibee will acquire the remaining 30 per cent of Happy Bee for about $10.4 million in the form of assets related to the production of food products intended for institutions outside of Jollibee brands in China.
    It is expected the deal, which does not include any cash outlay, will be closed this year.
    “The objectives of the acquisition – essentially an equity share and asset swap – are for Jollibee to concentrate on supporting the growth of its Yonghe King business, and on further improving its food quality and increasing assurance on food safety,” says Amante.

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