Tag: Jollibee Foods Corporation

Jollibee nets P2B in Q3 amid global push

HOMEGROWN food giant Jollibee Foods Corp. (JFC) expanded its attributable profit by a fourth from July to September, lifted by its global store expansion alongside the consolidation of American burger chain Smashburger into its portfolio.

In a disclosure to the stock exchange on Monday, JFC said net income attributable to equity holders of the parent climbed to P2.04 billion in the third quarter of 2018, 26% higher year-on-year. Its topline also registered a 22% increase to P39.75 billion, on the back of a 26% uptick in system-wide retail sales to P53.27 billion.

The listed firm attributed the system-wides sales increase to the consolidation of Smashburger into its portfolio. Without Smashburger, JFC’s system-wide sales for the third quarter went up by 16%, following a same store sales growth of 6% coupled with changes in foreign exchange rates.

Smashburger drove the North American business 218% higher. Without Smashburger, the North American business grew by 30.3%.

Meanwhile, its business in Europe, Middle East, and Asia ex-Philippines improved by 32%, while China went up by 5.2%.

The Philippines business, on the other hand, firmed up by 15%, after same-store sales growth reached seven percent. JFC’s local business accounts for 70% of system-wide sales.

This brought JFC’s attributable profit 19.2% higher to P6.09 billion in the first nine months of the year, after revenues logged a 21% increase to P114.84 billion. System-wide retail sales for the period also surged 24% to P153.18 billion.

Earnings per share on a year-to-date basis went up by 18.4% to P5.60.

“Sales grew strongly in most regions in the world including the Philippines. We are encouraged particularly by the strong performance of Jollibee and Highland Coffee in the Socialist Republic of Vietnam which have been growing by 35% driven by high same store sales and the opening of 73 new stores in the first nine months of the year with strong return on investments,” JFC Chief Financial Officer Ysmael V. Baysa said in a statement.

The JFC Group’s worldwide store network stood at 4,353 by end-September, after opening 302 stores during the period. Of this, 3,003 are located in the country across several brands such as Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, and Pho 24.

Overseas, the group also manages other brands like Dunkin’ Donuts, Yonghe King, Hong Zhuang Yuan, Highlands Coffee, Hard Rock Cafe, and Smashburger.

The nine-month period saw JFC’s entry into new markets, including Milan, Italy last April, Macau in June, and the United Kingdom in October. The company looks to open Jollibee stores in Malaysia and Guam in the following months.

Mr. Baysa said they expect the new stores to further improve earnings with the next one to two years, amid “episodes of high inflation rate and the acquisition of new businesses.”

Shares in JFC fell by 1.44% or P4 to close at P274 each on Monday. — Arra B. Francia

*this article was copied and originally published in BusinessWorld, last November 13, 2018 and can also be found at https://www.bworldonline.com/jollibee-nets-p2b-in-q3-amid-global-push/

Jollibee buys 47% stake in US-based Mexican restaurant

By Richmond Mercurio

MANILA, Philippines — Filipino fastfood giant Jollibee Foods Corp. (JFC) is acquiring $12.4 million worth of shares in a US-based restaurant chain that serves Mexican food.

JFC told the local bourse yesterday that its wholly-owned subsidiary Jollibee Foods Corp. (USA) has entered into a business venture with Tortas Frontera LLC owned by award-winning chef Rick Bayless to build a Mexican fast-casual restaurant business in the US.

JFC will invest $12.4 million for 47 percent of the fully-diluted membership interests in Tortas Frontera.

The remaining 53 percent membership interests in Tortas Frontera will be held by Bayless and other shareholders.

JFC said the transaction is still subject to the fulfillment of agreed closing conditions.

The fastfood giant said the partnership is in line with its strategy to continue building its business abroad and expanding its presence in North America.

The company said Mexican food is a rapidly-growing and very popular segment in the US restaurant industry with estimated sales of $45 billion in 2017.

“Together with chef Rick Bayless’ organization and brand Tortas Frontera, we will build a significant business in the large and fast-growing Mexican food category in the United States. This venture is very much in line with JFC’s mission: to serve great tasting food and spread the joy of eating to everyone,” JFC chairman Tony Tan Caktiong said.

Tortas Frontera, which is headquartered in Chicago, Illinois, currently has four restaurants in the US – three in Chicago O’Hare International Airport and one at The Arc in the University of Pennsylvania.

It is owned and founded by Bayless, an award-winning chef and is author of nine cookbooks.

“We at Jollibee Foods Corp. are very excited about this new partnership. We have great admiration for chef Rick Bayless for being a top chef, for being a successful restaurateur and for his philanthropic endeavors,” Tan Caktiong said.

JFC is Asia’s largest food service company with 4,279 stores worldwide as of end-June.

The company has a total of 436 stores in North America composed of 349 Smashburger, 37 Jollibee US, three Jollibee Canada, 32 Red Ribbon, and 15 Chowking.

In the Philippines, it has 2,957 restaurant outlets, including 1,094 Jollibee brand, 542 Chowking, 277 Greenwich, 434 Red Ribbon, 514 Mang Inasal, and 96 Burger King.

*This article was copied and originally published at The Philippine Star, last September 8, 2018 and can also be found at https://www.philstar.com/business/2018/09/08/1849534/jollibee-buys-47-stake-us-based-mexican-restaurant

Jollibee invests P668 million in US Mexican restaurant chain

By James A. Loyola

Jollibee Foods Corporation (JFC), Asia’s largest food service company, is investing about P668 million to venture into the $45-billion Mexican fast-casual restaurant business in the United States (US) in partnership with award-winning Chef Rick Bayless.

In a disclosure to the Philippine Stock Exchange, Jollibee said its wholly-owned subsidiary Jollibee Foods Corporation (USA) has entered into a business venture with Bayless’ Tortas Frontera LLC.

JFC will invest US$12.4 million in Tortas Frontera, which owns the Tortas Frontera business founded by Bayless, in consideration for 47 percent of the fully-diluted membership interests therein.

The remaining 53 percent membership interests in Tortas Frontera shall be held by Chef Rick Bayless and other shareholders. The transaction is subject to the fulfillment of agreed closing conditions.

Bayless is the founder of Tortas Frontera restaurants, which feature handcrafted tortas, fresh-made guacamoles, and hand-shaken margaritas. He is known for his award-winning Chicago restaurants, longrunning Public Television series and for winning the title of Bravo’s Top Chef Masters with his authentic Mexican cuisine.

“We at Jollibee Foods Corporation are very excited about this new partnership. We have great admiration for Chef Rick Bayless for being a top chef, for being a successful restaurateur and for his philanthropic endeavors,” said JFC Chairman Tony Tan Caktiong.

He added that, “together with his organization and brand Tortas Frontera, we will build a significant business in the large and fast-growing Mexican food category in the United States. This venture is very much in line with JFC’s mission: To serve great tasting food and spread the joy of eating to everyone!”

Mexican food is a rapidly-growing and very popular segment in the United States restaurant industry with estimated sales of US$40 billion to $45 billion in 2017.

Tortas Frontera, with headquarters in Chicago, Illinois, currently has 4 restaurants in the United States – three in Chicago O’Hare International Airport and one at The Arc in the University of Pennsylvania.

The Tortas Frontera restaurants use high-quality ingredients with recipes capturing the vibrant flavors of Mexico.

Earlier, Jollibee Foods Corporation (JFC) reported a 16.1 percent growth in attributable net income to P4.05 billion in the first half of 2018 from the P3.49 billion earned in the same period last year.

In a disclosure to the Philippine Stock Exchange, Jollibee said its net income for the period included foreign exchange gains of P69.1 million.

System wide sales, a measure of all sales to consumers both from company-owned and franchised stores grew by 23.2 percent to P99.91 billion from P81.08 billion while revenues rose 21.4 percent to P75.1 billion from P61.84 billion. Excluding the impact of the consolidation of Smashburger effective April 17, 2018, system wide sales grew by 18.7 percent for the first half of 2018.

System-wide sales grew by 26.8 percent in the second quarter compared to sales in the same period of 2017. Without Smashburger, system-wide sales grew by 18.1 percent for the second quarter of 2018.

*This article was copied and originally published at Manila Bulletin,  last Sept. 7, 2018 and can also be found at https://business.mb.com.ph/2018/09/07/jollibee-invests-p668-million-in-us-mexican-restaurant-chain/

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