Record growth boosts Jollibee Foods’ income 24pc
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Philippine-headquartered quick-service restaurant chain Jollibee Foods income jumped 24.6 per cent to 6.14 billion pesos (US$123.26 million) last year, thanks to aggressive store openings.
Jollibee says it opened 340 outlets across nine brands – its biggest expansion in a single year – of which 243 stores were in the Philippines. Including JVs, such as Smashburger in the US and Highlands Coffee in Vietnam, Jollibee opened 468 stores last year.
This pushed system-wide retail sales, derived from franchised and company-owned stores, by 14.1 per cent to 149.14 billion pesos.
Jollibee Foods Philippines CEO Ernesto Tanmantiong says the company is spending 14 billion pesos this year, up from 10.4 billion pesos last year, to open more outlets and expand its commissaries.
Jollibee says its business in China – about half of its overseas interests – has returned to growth, with sales expanding by 6 per cent in the fourth quarter.
Poor sales in China earlier prompted the company to reorganise there. It unloaded its San Pin Wang noodle chain and took over a food-processing company.
Questions & Answers
Q.What was the main reason for Jollibee Foods' income increase last year?
What was the main reason for Jollibee Foods' income increase last year?
Jollibee Foods' income jumped significantly due to its aggressive store opening strategy. The company launched 340 outlets across nine brands, marking its largest expansion within a single year, with 243 of these located in the Philippines.
Q.How many new stores did Jollibee Foods open in total last year, including its joint ventures?
How many new stores did Jollibee Foods open in total last year, including its joint ventures?
Including joint ventures like Smashburger and Highlands Coffee, Jollibee Foods opened a total of 468 new stores last year. This expansion contributed to a 14.1 per cent increase in system-wide retail sales for the company.
Q.What is Jollibee Foods' planned capital expenditure for this year, and what is it for?
What is Jollibee Foods' planned capital expenditure for this year, and what is it for?
Jollibee Foods plans to spend 14 billion pesos this year, an increase from 10.4 billion pesos last year. This investment is earmarked for opening more outlets and expanding its existing commissary facilities.
Q.How has Jollibee Foods' business in China performed recently?
How has Jollibee Foods' business in China performed recently?
Jollibee's business in China, which represents about half of its overseas interests, has returned to growth. Sales in the region expanded by 6 per cent in the fourth quarter, following earlier reorganisation efforts including selling its noodle chain.
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