Tag: Jollibee

JOLLIBEE CELEBRATES 25th LISTING ANNIVERSARY:

Jollibee Foods Corp. marked its 25th year as a listed company with a special bell ringing ceremony at the Philippine Stock Exchange on Wednesday. Shown in photo are (from left): PSE director Alejandro Yu; JFC independent director Monico Jacob; JFC director and former chief justice Artemio Panganiban; Tourism Secretary Bernadette Romulo-Puyat; JFC director Antonio Chua Poe Eng; Jollibee Group Foundation Inc. president Grace Tan Caktiong; JFC chairman Tony Tan Caktiong; PSE chairman Jose Pardo; DBP chairman and former senator Alberto Romulo; PSE COO Roel Refran; JFC director William Tan Untiong; JFC director Joseph Tanbuntiong and PSE director Emmanuel Bautista.

*This photo is published on The Philippine Star last July 20, 2018 and is available online at https://www.pressreader.com/philippines/the-philippine-star/20180720/282037622946185

Jollibee brings Vietnamese chain to Philippines

April 26, 2018 | 12:10 am

JOLLIBEE Foods Corp. (JFC) will be bringing is Vietnamese restaurant chain Pho 24 to the Philippines, the homegrown fastfood giant disclosed to the stock exchange on Wednesday.

The listed company said the expansion of the Vietnamese brand will be done through its wholly-owned unit, Fresh N’ Famous Foods, Inc. As the name suggests, Pho 24 serves Vietnamese noodle soup known as “pho,” as well as other traditional Vietnamese dishes.

Pho 24 forms part of the SuperFoods Group, JFC’s 60-40 joint venture with Viet Thai International Joint Stock Co. (VTI) through subsidiary, JSF Investments Pte. Ltd.

“(T)he SuperFoods Group aims to serve customers in Asia and key cities in the world with high quality and healthy Vietnamese food at affordable prices through the Pho 24 brands.

Aside from Pho 24, the SuperFoods Group also owns and operates the Highlands Coffee brand, as well as franchises Hard Rock Cafe in Vietnam, Macau, and Hong Kong.

JFC noted that it renovated all stores under the SuperFoods Group last year, as it shifted to a fast casual dining model instead of casual dining. The renovations allowed for faster ordering, product delivery, and cleaner store environments, according to the company.

At the end of 2017, the SuperFoods Group had a total of 281 stores under the Highlands Coffee, Pho 24, and other brands.

The move to expand the SuperFoods Group is in line with JFC’s commitment to take the company public in Vietnam by 2019.

JFC has also previously taken control of Denver-based burger chain Smashburger, which operates 352 stores in the United States, Costa Rica, Egypt, El Salvador, the United Kingdom, and Panama. This helped increase the company’s store network to over 4,000 worldwide.

In the Philippines, the company had a total of 2,895 as of the end of March under various brands such as Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, and Burger King.

In addition, the company has 943 stores overseas, under different brands such as Yonghe King, Hong Zhuang Yuan, Dunkin’ Donuts, Jollibee, Highlands Coffee, Hard Rock Cafe, and Pho 24.

The push toward more stores overseas is seen to help achieve JFC’s goal of seeing equal revenue contributions from local and international businesses by 2022.

JFC saw its net income attributable to the parent grow by 15% in 2017 to P7.089 billion, supported by a 15.6% uptick in revenues to P131.57 billion for the period.

This year, the company continues its aggressive store expansion as it rolls out P12 billion in capital spending.

Shares in JFC dipped P3.40 or 1.19% to close at P281.60 each at the stock exchange on Wednesday. — Arra B. Francia

*This article was published in Business World on April 26, 2018, and can also be found online at: http://bworldonline.com/jollibee-brings-vietnamese-chain-to-philippines/

JFC completes deal to gain control of Smashburger

JOLLIBEE Foods Corp. (JFC) has completed its acquisition of an additional stake in American burger chain Smashburger, effectively expanding the homegrown fastfood giant’s global footprint.

In a disclosure to the stock exchange on Tuesday, the listed company said it has completed all closing conditions and regulatory approvals for the acquisition of an additional 45% stake in SJBF LLC, the parent firm of the entities related to the Smashburger business.

The transaction was made through a purchase agreement between JFC’s wholly owned unit, Bee Good! Inc. (BGI) and Smashburger Master LLC. This brings JFC’s total stake in Smashburger to 85%, as it has previously acquired a 40% share in the latter in 2015.

“With the completion of the acquisition, JFC shall include Smashburger in its financial consolidation starting April 17, 2018,” the company said.

The acquisition is valued at $100 million, to be paid in cash at the close of the deal.

The Denver-based burger chain currently operates through 365 restaurants worldwide, and is present in 39 states in the United States and in 10 foreign markets. This brings JFC’s global store network to 4,162, as well as expand its presence to 21 countries, adding Costa Rica, Egypt, El Salvador, the United Kingdom, and Panama.

With the acquisition, JFC said Smashburger will increase the sales contribution of the United States to worldwide systemwide sales to 15% from the present 5%. The acquired firm will also raise the contribution of foreign businesses to worldwide systemwide sales to 30% from 20% currently.

In the Philippines, JFC had a total of 2,884 outlets as of the end of February, maintaining its position as the largest food service network in the country. Of these stores, 1,071 carry the Jollibee brand; 529 are Chowking; 495 are Mang Inasal; 425 are Red Ribbon; 271 are Greenwich; and 93 are Burger King.

JFC has more brands operating in China, Hong Kong, Singapore, and the Middle East, among others.

The Tony Tan Caktiong-led firm booked a 15% growth in its net income attributable to the parent in 2017 to P7.089 billion. Revenues meanwhile also gained 15.6% to P131.57 billion, boosted by the double-digit increase in system wide retail sales for during the year.

JFC is accelerating its spending this year, allotting P12 billion for capital expenditures to fast track its global expansion. The company earlier said that it looks to see equal contribution from local and international sales by 2022.

Shares in JFC lost 1.03% or P3 to settle at P288.60 by closing bell at the Philippine Stock Exchange on Tuesday. — Arra B. Francia

*This article was copied from and was originally published by Business World in the newspaper on April 18, 2018. It is also available online at: http://bworldonline.com/jfc-completes-deal-to-gain-control-of-smashburger/

Jollibee opens first store in Europe

posted April 01, 2018 at 06:05 pm by Manila Standard Lifestyle

Our very own bee mascot, Jollibee says “ciao Italia!” as it welcomes customers to the local fast food chain’s first European branch in Milan, Italy.

Located in Piazza Diaz 7, Milan, the Jollibee branch is just a stone’s throw from Duomo, Milan Cathedral.

In the early hours of its opening day, customers—families, young people, members of the Filipino community, and even locals—were already seen lining up in front of the Jollibee store.

Among those who patiently waited for Jollibee’s doors to open was Tommy Flores Jr. who said the experience was all worth it. “Naghintay kami ng four hours sa labas pero sulit,” he shared on his Facebook post. Meanwhile the Aquilon, Flores, and Mendoza families unanimously exclaimed, “Kahit mahaba ang pila, sobrang sulit ‘yung pagpunta namin! It tastes just like the Chickenjoy sa Pinas!”

The queue of eager and ecstatic customers outside of the outlet was so long that it poured out of the restaurant.

“Getting a foothold in Milan is a fundamental step for Jollibee, as well as a launch pad for the expansion of the brand to the rest of Europe,” said Jollibee Foods Corporation chief executive officer Ernesto Tanmantiong.

The opening of the Jollibee branch in Milan followed the signing of a joint venture between Jollibee Foods Corporation and Singapore Blackbird Holdings to export the fast food chain to Europe.

Tanmantiong shared, “This newest venture sets off our journey that will lead to opening more stores around the continent—an ambitious goal, which we will achieve by consistently offering a unique dining experience with our delicious food and warm service.”

The chief executive said JFC aims to bring Filipinos “a taste of home” and at the same time share with Italians both the fast food chain’s food offerings and the joyful experience of being together.

At its first European store, Jollibee’s menu offers its bestsellers such as Chickenjoy and Yumburger, along with special items like Chicken Tenders and Chicken Burgers that cater to both Filipino and Italian tastes.

 

*This article was copied from and was originally published by Manila Standard in the newspaper on April 2, 2018. It is also available online at: http://thestandard.com.ph/lifestyle/food/262064/jollibee-opens-first-store-in-europe.html

Filipinos love love—and joy; don’t doubt it

A total reach of 71.7 million on Facebook, and counting, proves it

By: / / 05:02 AM February 14, 2018

Not only are Filipinos the world’s biggest social media users—a global study showed we spend more time on social media than any other nationality in the world (an average of four hours and 17 minutes a day)—they must also be the most romantic netizens in the world.

Proof: The fast-food chain Jollibee videos have gone viral again.

Released online two weeks ago, the three Kwentong Jollibee videos–“Signs,” “Status” and “Homecoming”– have had a total reach of 71.7 million on Facebook, with 34.5 million views on both Facebook and YouTube.

In the first 24 hours since the videos were posted, “Signs” drew 4.1 million views, 130,000 shares on Facebook alone, and “Homecoming” and “Status” getting 2.9 million and 2 million views, respectively.

Millennial audience

The numbers are remarkable, but should be expected, given how many Pinoys are diehard romantics. Based on analytic data on online reactions to last year’s videos, females 20 years old and above were the ones who responded most favorably.

“These female millennials were the ones who liked and, more importantly, shared the videos on their own social media accounts,” said Francis Flores, Jollibee global brand and chief marketing officer, and Jollibee Philippines marketing head. “Many of them shared their own experiences as well.”

Enrico Cuenca, Ashley Ortega and Lance Duggan reprise their roles in “Homecoming.”

He already knew that there had to be a new story this segment could share again.

Late last year, advertising firm McCann Worldgroup, headed by chair and CEO Raul M. Castro, again began sifting through dozens of possible Valentine storylines. From 50, they cut it down to five, which were presented to the client.

“We stayed true to what the brand was all about—spreading joy,” said Mitzie Nacianceno, McCann associate marketing partner.

“Based on my experience, I already know if a story will connect with our target audience. At the same time, it also had to be universal to appeal to the other segments,” Flores said.

Millions of views and likes are well and good, but for Flores, “the ultimate measure of success are the shares.”

“There are companies that buy ‘likes,’ but what they cannot do is buy ‘shares,’ he pointed out.

To date, the videos have been shared close to 550,000 times with almost 530,000 comments.

The cast of “Signs”: Bryce Dyler, Alexa Miro and Kyle Christian Anda

In “Signs,” a college coed believes that the universe will identify who she’s meant to be with. She misinterprets many of the supposed signs, until she realizes what she was looking for had been there all along.

Meanwhile, the protagonist in “Status” realizes, after far too many heartbreaks, that her one true love is her family.

“Homecoming” is an “interquel” to one of the Kwentong Jollibee videos from last year. Not to be confused with a prequel or a sequel, an interquel shows what happens in the middle of the story.

“Signs,” by far, is the most popular of the three new videos with 16.4 million views, although “Status” is being shared as well as commented on.

“In the process of crafting it, we felt it should be different from other Kwentong Jollibee videos because the others have a narrative, like a rom-com, while ‘Status’ is a very internal, introspective story,” McCann executive creative director Sid Samodio said.

“We were very fortunate to find a very talented woman (theater actress Elora Españo) to play the role because it would not have felt as genuine with a lesser actress,” Samodio added.

The team, from left: McCann Worldgroup’s executive creative director Sid Samodio, associate managing partner Mitzie Nacianceno, chairperson and CEO Raul Castro, senior art director and writer Flem Añonuevo, account manager Tonee Lacson and creative director Xzenia Cruz —PHOTOSBY ALEC CORPUZ

“For our target audience of female millennials, ‘Status’ was very relevant,” Flores said. “They’re at that stage where they’re not new in the dating game, they’ve learned a few lessons. They realize the value of self-love and family love.”

Core values

As Jollibee celebrates its 40th anniversary this year, it continues to strengthen its core Filipino values.

“We’ve always wanted Jollibee to be a brand that promotes positive family values. We’re really strong on family and I don’t expect our competitors to talk much about family love,” Flores said.

“They might come up with an ad about family, but people think it’s Jollibee or might say, ‘It feels like a Jollibee ad,’ and that’s a strength for us. When you talk about family or family values, top of mind is Jollibee,” he added.

Cast of #KwentongJollibee’s “Status”: Christian Sambilay, Elora Españo and Kristine Tabas

McCann’s Castro acknowledged the “overwhelming fame” that was a result of the first Valentine’s campaign last year.

“You can get derailed if you do things just for fame. For our client Jollibee, we went back to what we felt was right and, in this particular case, find the most heartwarming, kilig love stories that we can feature—inspired by the stories of the fans of Jollibee,” Castro said.

With 2018 being a landmark anniversary for the brand, Flores said Jollibee has mapped out a yearlong celebration that kicked off with the return of celebrity endorsers Aga Muhlach, wife Charlene Gonzales and their teenage twins Atasha and Andres.

Francis Flores, Jollibee global brand and chief marketing officer and Jollibee Philippines marketing head

It has also released a new song, “Apat na Dekada,” performed by Sarah Geronimo and Jollibee’s first-ever celebrity endorser, Gary Valenciano.

There are no plans of letting go of the Kwentong Jollibee videos come V-Day next year.

“One commenter wrote, ‘I know it’s February because there are new Kwentong Jollibee videos.’ We want to own that tradition. The challenge now is to come up with something better than what we’ve been doing,” Flores said.

 

*This article is copied from and was originally published by the Philippine Daily Inquirer in the newspaper on February  14, 2018 and is available online at: http://lifestyle.inquirer.net/286502/filipinos-love-love-joy-dont-doubt/

‘Kwentong Jollibee’ campaign sets bar for digital marketing

By The Manila Times on February 11, 2018

 

Fast food giant Jollibee Foods Corp. (JFC) once again took social media by storm with its latest batch of Kwentong Jollibee Valentine short videos.

During the recent launch of the new videos titled, “Signs,” “Homecoming” and “Status,” Arline Adeva, JFC brand communications head, told The Manila Times that while the primary goal of the Kwentong Jollibee campaign is “to strengthen brand love and affinity” among their millennials target market, it has also boosted sales in a big way.

Last year, the first batch of heart-tugging “Kwentong Jollibee” videos consisting of “Vow,” “Crush” and “Date” combined to generate over 40 million views on Facebook and YouTube.

In terms of sales, those views also translated to a huge jump in revenues during the week the campaign was launched.

Adeva said total growth more than tripled during that period with two Jollibee signature food products, the Chickenjoy and Yumburgers getting the lion’s share of demand. “Sales growth for Chickenjoy doubled while sales for our yum burgers also quadrupled,” Adeva noted.

More than the sales, which are again expected to follow last year’s trend, JFC is very pleased with the Kwentong Jollibee campaign as the three new videos have already replicated the social media impact generated by last year’s batch.

Adeva added that since the uploading of the new Kwentong Jollibee videos last February 2, the campaign has earned a combined total reach of 57 million on Facebook as of Thursday, February 9.

The 23 million views on both Facebook and YouTube are also on pace to duplicate and even exceed last year’s 40 million plus views as Valentine’s week approaches.

INFOGRAPHIC BY JOLLIBEE FOODS CORPORATION

The impressive numbers have prompted JFC global brand chief marketing officer Francis Flores to declare Kwentong Jollibee as “setting the benchmark or gold standard for digital marketing.”

But more than the reach and the views, JFC sees engagement as the key to the campaign’s success. So far, the three Kwentong Jollibee videos have a total engagement of 2.3 million on Facebook and YouTube including 540,000 total shares and 458,000 comments.

“For every Kwentong Jollibee we produce, we look at engagement as an indication of how powerful the storytelling was and how relatable our materials are to our publics. This is not just about the views, but how many shared our material, how many have commented or reacted to it and how it helped the brand dominate online conversations and own the season,” Adeva noted.

As for sales, Adeva said JFC considers it “a bonus” that the global impact of Kwentong Jollibee has people also lining up to dine not only at Jollibee’s 1,000 plus stores all over the Philippines but also in the almost 200 Jollibee stores outside the country.

“But we’re very happy just the same that these stories gave our customers more reasons to go to Jollibee and buy more of our products,” Adeva concluded.

 

*This story is copied from and originally published by The Manila Times in the newspaper on February 11, 2018 and is available online at http://www.manilatimes.net/kwentong-jollibee-campaign-sets-bar-digital-marketing/379510/

Jollibee opens 27th store in Davao

By Ace June Rell S. Perez, SunStar Davao,

Monday, January 22, 2018
THEY say Jollibee is an indicator of progress.
There’s this notion that when there is a branch of Jollibee in a place, it can be considered as a city. This may not be necessarily true but no one can argue that Jollibee, indeed, is an indicator of progress as it genuinely brings happiness to a place through its good food and “happy place” set-up.
This year, Dabawenyos living near Puan, Davao City have more reasons to be happy as Jollibee – Puan branch opened last January 19.
The newest store is the 27th branch of Jollibee in Davao City and 130th in Mindanao. It is open 24 hours and has a Drive Thru store.
Just like any store opening, it started with a blessing a day earlier, a ribbon-cutting ceremony on the day and a Chicken Joy toast.
The store team was also introduced to the customers.
The first-day customers were also entertained with a Jollitown Dance by the Jollibee store management team.
LanghapSarap meals were also offered to those who graced the event.
*This article was originally published by and is copied from SunStar Davao and is available online at : http://www.sunstar.com.ph/davao/lifestyle/2018/01/22/jollibee-opens-27th-store-davao-585033

Jollibee Foods eyeing more acquisitions in US and China

Published October 13, 2017, 10:01 PM, Manila Bulletin | By Ian Sayson and Sterling Wong (Bloomberg)

Jollibee Foods Corp., the fast-food chain that controls more than half of the Philippines’ $4-billion market with its signature fried chicken, is looking for acquisitions to accelerate ambitious expansion plans in the US and China.

The targets could be other fast-food chains as well as fast-casual restaurants like Smashburger, the US franchise in which Jollibee owns 40 percent, President Ernesto Tanmantiong said in an interview.

jollibee food

“We are looking at the world arena,” he said. “The acquisition of new businesses is part of our growth strategy and, over the last few years, we have been entertaining opportunities.”

Pasig City-based Jollibee is on track to meet its goal of doubling profit in the five years through 2019, and Tanmantiong now wants it to be one of the five biggest restaurant chains by market capitalization globally.

Jollibee, which had about 14 billion pesos ($272 million) in cash and equivalents as of June 30, operates more than 3,500 stores globally, according to its second-quarter earnings statement. Its best-selling item is called Chickenjoy.

Three-quarters of those outlets are in the Philippines, where the company is capitalizing on an economy that’s grown by at least 6 percent for nine straight quarters. The World Bank projects that streak to continue through 2019 as consumer spending increases and the population grows at a faster rate than the global average.

“We are optimistic with the future of the Philippine market,” said Tanmantiong, 59. “Major pillars will still be the Philippines, China and US, although we don’t close our door to opportunities in other geographic areas.”

Jollibee generated 21 percent of its 113.9 billion pesos in revenue overseas last year, according to data compiled by Bloomberg.

The company’s shares have risen 26 percent so far this year, outperforming the benchmark Philippine Stock Exchange Index. Its current market capitalization is about $5.15 billion.

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

In 2015, Jollibee spent $100 million for its stake in Smashburger, which had 362 stores in the US as of June 30. The Philippines company has completed 12 deals valued at about $301 million since 2010, according to data compiled by Bloomberg.

The company has considered about 20 potential acquisitions during the last two years. Local and international media have reported that Jollibee is considering a bid for Pret A Manger Ltd. that values the UK-based sandwich maker at more than $1 billion.

When asked about those reports during the Oct. 11 interview, Tanmantiong would only say the company hasn’t made any bids in recent months.

“We are prioritizing the markets with bigger Filipino communities,” said Tanmantiong, who became president and chief executive officer in 2014. His older brother, Tony Tan Caktiong, founded the chain as an ice cream parlor in Quezon City in 1975.

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

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

The company wants half of its sales to come from overseas, with China and the US being key markets, Tanmantiong said. Yet those plans may be complicated by territorial disputes with China over islands in the South China Sea.

In Europe, the chain is targeting Filipino communities in the UK, Italy and Spain. Jollibee will open its first stores in Milan and London next year, with plans to push into Japan and Australia by 2020.

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

“Our assumption is: the growth we’ve had in the last six years, we can double,” Tanmantiong said. “The opportunities are out there.”

 

This article is copied from Manila Bulletin as published in the newspaper on October 13, 2017, page B-3, and is available online at https://business.mb.com.ph/2017/10/13/jollibee-foods-eyeing-more-acquisitions-in-us-and-china/

Jollibee opens 20th Branch in Cagayan de Oro

posted on Sunday, October 01, 2017 by Sunstar Cagayan de Oro

FILIPINO fastfood giant Jollibee has reached yet another milestone, opening its 20th branch in Cagayan de Oro City Thursday, September 28. Located beside Sea Oil Gas Station along San Pedro Street in Kauswagan Highway, Jollibee Kauswagan Diversion is a drive-thru store that will be especially helpful for motorists taking the Coastal Diversion Road to Opol town, Misamis Oriental.

The store is also expected to bring the usual joy and happiness to families living near and around the villages of Kauswagan, Bonbon, and Bayabas.

The newly-opened Jollibee store is also significant as the store is the 126th Jollibee fast service restaurant in Mindanao.

The store blessing and inauguration last Thursday was graced by Jollibee executives and Cagayan de Oro politicians including 1st District Representative Rolando ‘Klarex’ Uy, Cagayan de Oro City Administrator Dionnie Gersana and Barangay Chairman of Kauswagan Pedro Balete.

Jollibee is the largest and fast food chain in the Philippines. Its trademark, aside from its Filipino-oriented menu, is promoting a dining experience focused on the family and the importance of family values. Jollibee has also consistently been recognized as the number one fast food chain in the Philippines. (Baby Love Umpa)

This article is copied from the article published by Sunstar Cagayan de Oro and can be found online at: http://www.sunstar.com.ph/cagayan-de-oro/lifestyle/2017/10/01/jollibee-opens-20th-branch-cagayan-de-oro-567034

Fried chicken to wraps: Jollibee eyes deals to grow

By: BusinessWorld, September 26, 2017

MANILA/SINGAPORE — Filipino billionaire Tony Tan Caktiong, who has built Jollibee Foods Corp. into a near-4,000 store purveyor of sweet-style spaghetti, burgers and fried chicken, is looking to buy existing brands in mature markets to help fuel future growth.

Dominant at home, where Jollibee has 1,000 eponymous stores welcoming diners with its smiling bee logo, Mr. Tan now wants to reshape the $5-billion group as a global fastfood company, bankers and fund managers say.

Primary targets include the United States and China, where it already has joint ventures, including Dunkin’ Donuts.

Mr. Tan, 64, said at a company event in July that half of Jollibee’s total sales would come from overseas stores in the next five years. Currently, foreign stores including joint ventures account for 30% of sales.

This week, people familiar with the matter said Jollibee was considering bidding for Pret A Manger, a UK-based chain selling organic coffee and wholesome sandwiches to office workers. It is still working out a valuation and has not yet decided to bid, the people said.

“Jollibee has to keep chasing growth. They own pretty much every large chain in their home market,” said a regional banker who has dealt with the company. “They are definitely not shy when it comes to looking at mature markets.”

Ysmael Baysa, Jollibee’s chief finance officer, told Reuters this week that buying new businesses “has always been part of our growth strategy.”

Mr. Tan started out with two ice cream parlors in the 1970s, and expanded Jollibee rapidly into a fast food chain dubbed “the McDonald’s of the Philippines.” Forbes ranks him as the country’s eighth-wealthiest man.

“They see where they could utilise the knowledge and synergies they have,” said Robert Ramos at Unionbank, who helps manage $795 million in funds and holds Jollibee stock. “They are increasing the revenue stream beyond the businesses they have now… They are choosing businesses in line with their core competence.”

As discretionary incomes have grown in Asia, the region has become the second-largest fast food market globally after North America.

Jollibee has created new domestic brands and has tie-ups with foreign chains. It bought a stake in Highlands Coffee, which outsells Starbucks in Vietnam, and opened its own outlets in Saudi Arabia and the United States.

‘PREMIUM CREDIT’
Jollibee’s interest in Pret A Manger — which owner Bridgepoint is said to be preparing for a US listing this year — comes just two years after Mr. Tan paid around $100 million for a 40% stake in US-based chain Smashburger, his biggest overseas deal to date.

“If Jollibee wanted to do a $1-billion acquisition, it will have access to capital. It’s very liquid whether overseas or onshore. Jollibee is a premium credit,” said a person close to the company, who was not authorised to speak to the media and asked not to be named.

“Jollibee is very clear where they would like to grow: the Philippines, China and the US.”

In China, the company operates about 400 stores of various brands, including joint ventures.

While Jollibee’s original menu is a hit at home and among the diaspora of millions of Filipinos working overseas, it’s a challenge to broaden its appeal to international diners — hence the drive to acquire global brands.

Jollibee’s revenue has more than tripled over the past decade to P113.9 billion ($2.2 billion), its net income has jumped to P6.16 billion, powered by strong consumer spending in one of the world’s fastest-growing economies, and its shares trade at around P242 each, up from P51.50 a decade ago.

Other Philippine companies, too, have used their plentiful cash and access to bank credit to make overseas deals, such as Universal Robina Corp.’s acquisition of Snackbrands Australia for $462 million last year, and Alliance Global Group’s earlier $291 million buy of Bodegas Fundador from Beam Suntory. — Reuters

 

*This article is a re-post from the published article of BusinessWorld (Sept. 26, S1/2) and is available online at http://bworldonline.com/fried-chicken-wraps-jollibee-eyes-deals-grow/

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