Jollibee expects to exceed targets

MANILA, Philippines — Jollibee Foods Corp. (JFC) is optimistic  it will  exceed its guidance for the year given the better-than-expected performance in the second quarter.

Richard Shin, JFC chief finance officer, said the company is on track to surpass  its guidance with its operating income seen growing at 20 to 25 percent.

He attributed this to consumers’ preference for “great value and great tasting QSR segment” on the back of rising inflation.

In a roundtable discussion with the media Tuesday, Shin said systemwide sales are projected to rise  by 18 percent to 20 percent with same store sales growth ranging from seven percent to 10 percent.

JFC also aims  to grow its store network by at least five percent this year versus 2022 with a gross store opening target of 550 to 600 stores across the globe. Jollibee has allocated P17 billion to P19 billion for capital expenditures to support its store network expansion.

Shin said last year’s laggards, such as Smash Burger, performed better this year.

JFC posted a net attributable income of P7.5 billion last year,  up from P5.9 billion in 2021. Full year consolidated operating income grew by 58.4 percent to P9.9 billion in 2022.

JFC chief executive officer  Ernesto Tanmantiong reported that system-wide sales of the Philippine business rose  by 14.5 percent in the second quarter  while international business grew by 20.9 percent.

“Overall,  system-wide sales for the second quarter increased  by 16.9 percent, with nine percent growth in same store sales, 6.2 percent from new stores and 1.7 percent from currency translation.

JFC opened 270 stores during the first half, 230 of which are in the international markets. As a result of JFC’s continued strong topline growth and prudent management of expenses, JFC generated an operating profit of P4 billion during the quarter. This represents an increase of 31 percent compared to the operating profit for the second quarter of 2022 and 11.1 percent higher than  the first quarter.

In terms of geographical expansion, Shin said the company would continue to focus on expanding in the US and in Southeast Asia particularly Vietnam.

There is also room to grow in China, he said.

“China is too big to ignore,” he said.

The Jollibee Group has 6,617 stores worldwide with 3,287 stores in the Philippines and 3,330 stores internationally.

Its brands include Jollibee, Highlands Coffee, Coffee Bean & Tea Leaf, Chowking, Mang Inasal, Red Ribbon, etc.