Jollibee Foods Corp. buys stake in Tortas Frontera
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Philippine fast-food operator Jollibee has bought a 47 per cent stake in US-based Mexican food chain Tortas Frontera.
The US$12.4 million acquisition was announced in a disclosure to the Philippine Stock Exchange. Chairman Tony Tan Caktiong said would help the firm tap the “fast-growing” Mexican food category in the US. Mexican venues occupy about 9 per cent of the US restaurants market.
The move falls in line with Jollibee’s plans to become one of the top five fast-food chains in the world, and is its second major acquisition in the US following taking a majority shareholding in Smashburger. It has also purchased big brands in China.
Jollibee operates 4279 stores globally, with more than 1400 of those Jollibee-branded outlets.
Questions & Answers
Q.What is the primary motivation behind Jollibee's investment in Tortas Frontera?
What is the primary motivation behind Jollibee's investment in Tortas Frontera?
Jollibee aims to capitalise on the rapidly expanding Mexican food sector in the US, as well as furthering its strategic goal of becoming one of the top five global fast-food chains.
Q.What percentage of the US restaurant market is currently occupied by Mexican food venues?
What percentage of the US restaurant market is currently occupied by Mexican food venues?
Mexican food venues currently account for approximately nine percent of the total US restaurant market. This indicates the category's significant presence and potential for growth.
Q.Has Jollibee made other significant acquisitions in the US market recently?
Has Jollibee made other significant acquisitions in the US market recently?
Yes, this is Jollibee's second major acquisition in the US. Prior to Tortas Frontera, the company purchased a majority shareholding in Smashburger, another US-based brand.
Q.What is the total number of Jollibee-branded stores globally?
What is the total number of Jollibee-branded stores globally?
Out of its total of 4279 stores worldwide, more than 1400 are specifically Jollibee-branded outlets. The remaining stores operate under other brands owned by the corporation.
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