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Business Times
4 days ago
- Business
- Business Times
Jollibee posts record sales as China business recovers
[MANILA] Top Philippine restaurant operator Jollibee Foods said sales jumped to a record high in the second quarter as its China business recovered and looks set for a turnaround. System-wide sales, which measures all sales from company-owned and franchised outlets, jumped 19.6 per cent to 114.5 billion pesos (S$2.6 billion) in the quarter ended June from a year ago, Jollibee said in a statement released on Thursday. The group, which has more than 10,000 stores and cafes across 33 countries, said net income rose 5.6 per cent to 3.2 billion pesos in April-to-June quarter, the highest since the last quarter of 2021. Jollibee shares climbed as much as 1.9 per cent on Thursday. Despite softness in the US market, the company said sales at its international business grew 32.6 per cent, driven by its acquisition of South Korea's Compose Coffee. Philippine sales rose 11.3 per cent, fuelled by its flagship Jollibee brand and chicken barbecue chain Mang INasal. Jollibee, known for its sweet spaghetti and fried chicken dishes, said same-store sales in China grew 3.9 per cent in the quarter from a year earlier after several quarters of decline due to weak consumer spending in the world's second-largest economy. 'China is showing signs of recovery, marking a potential turnaround in performance,' Jollibee Group chief financial and risk officer Richard Shin said in the statement. 'Our strategic shift towards franchising, combined with disciplined capital allocation, is enhancing asset efficiency and ROIC,' Shin said, referring to return on invested capital. 'Today 69 per cent of our stores operate under a franchised model, reflecting our ongoing transition to a more capital-light structure.' BLOOMBERG
GMA Network
4 days ago
- Business
- GMA Network
Jollibee Group Q2 net income up 5.6% to P3.21 billion
Food service company Jollibee Foods Corp. on Thursday reported a 5.6% increase in its attributable net income for the second quarter of the year, on the back of the double-digit increase in its systemwide sales during the period. The Jollibee Group said its attributable net income climbed 5.6% to P3.211 billion from P3.041 billion last year, while its net income grew 7.2% to P3.416 billion from P3.187 billion. Systemwide sales (SWS) gained 19.6% to P114.542 billion, with international SWS up 32.6% on the back of the 68.8% growth in the coffee and tea segment, largely driven by Compose Coffee. Revenues for the quarter were up 15.5% to P77.626 billion, while operating income rose 19.1% to P6.037 billion. 'Our strong operating results this quarter reflect not only the positive impact of our strategic acquisition but also the underlying resilience of our business,' Jollibee Group chief financial and risk officer Richard Shin said in an emailed statement. 'Disciplined execution of both our cost optimization initiatives and portfolio innovation efforts helped stimulate growth and profitability. The expansion in operating margin and earnings underscores the effectiveness of our strategy,' he added. The first-half attributable net income fell 0.7% to P5.617 billion from P5.658 billion, while net income increased by 0.4% to P5.914 billion from P5.891 billion. Jollibee Group ended June with 10,119 stores, up 45.5% from the previous year—3,424 in the Philippines and 6,695 international stores, including 547 in China, 357 in North America, and 400 in Europe, the Middle East, and Africa (EMEA). The group's brands include Jollibee, Chowking, Greenwich, Red Ribbon, Yong He King, Hong Zhuang Yuan, Mang Inasal, Burger King, Highlands Coffee, Smashburger, Tim Ho Wan, Tortazo, The Coffee Bean & Tea Leaf, Panda Express, Yoshinoya, Milksha, and Common Man Coffee Roasters. Shares in the company were last trading at P222.00 apiece, up P5.00 or 2.33% from Wednesday's finish of P215.00. —VBL, GMA Integrated News
Yahoo
25-03-2025
- Business
- Yahoo
Jollibee Foods Corp (JBFCF) Q4 2024 Earnings Call Highlights: Strong Sales Growth Amidst Margin ...
Same Store Sales Growth: 5.7% in Q4 2024. System-Wide Sales Growth: 15.9% in Q4 2024. Revenue Growth: 7.6% in Q4 2024 compared to Q4 2023. Gross Profit Margin: 19.9% in Q4 2024, down from 21% in Q4 2023. Operating Profit Margin: 6.7% in Q4 2024. Net Income Growth: 17.7% for the full year 2024. EBITDA Margin: 13.8% for the full year 2024. Free Cash Flow Margin: 8.3% for the full year 2024. Store Network: 69% of nearly 9,800 restaurants and cafes are franchised. North America Average Daily Sales (ADS): $13,400 per store. CBTL Revenue Growth: 14% for the full year 2024. System-Wide Sales Guidance for 2025: 8-10% growth. Same Store Sales Growth Guidance for 2025: 4-6% growth. Operating Income Growth Guidance for 2025: 10-15% growth. Warning! GuruFocus has detected 5 Warning Signs with STU:9S2. Release Date: March 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Jollibee Foods Corp (JBFCF) reported a same-store sales growth of 5.7% and a system-wide sales growth of 15.9% for the fourth quarter, indicating strong market performance. The company is on track with its long-term objective to triple net income after tax attributable to the parent company by 2028, with a growth rate of 17.7% in 2024. Jollibee Foods Corp (JBFCF) is aggressively expanding its Jollibee brand internationally, particularly in the US, which is one of its best-performing markets. The Coffee and Tea segment, led by CBTL, showed significant growth, with a 14% year-on-year increase in 2024, and is expected to continue its upward trajectory. The company is pivoting towards a franchisor model, with 69% of its nearly 9,800 restaurants and cafes now franchised, aiming for an asset-light business model. Jollibee Foods Corp (JBFCF) faced challenges with Smash Burger, reporting negative EBITA in the third and fourth quarters, leading to management changes and restructuring. The company experienced a dip in operating profit margin due to increased labor costs, particularly from a wage hike in Metro Manila and California. There were concerns about the quality of profits, with a slight loss at the operating profit level and a dip in EBITA for the fourth quarter. The company's performance in China remains a challenge, with competition from dominant players like KFC and local brands, affecting its market strategy. The fourth quarter results were impacted by two one-off items, including a 0.6 billion peso loss from the extraction of Timall One from Titan, affecting overall financial performance. Q: What is Jollibee's strategy in China, and how are they addressing current challenges? A: Richard Shin, CFO, explained that Jollibee does not operate its main brands like Jollibee or coffee and tea in China due to strong competition. Instead, they focus on Chinese cuisine in the value segment with their lead brand, Yongha King. They are testing new pricing models to increase transaction counts and plan to expand in tier 3 and 4 cities using a franchise model. Shin emphasized that they are not funding China operations externally and are optimistic about future growth as consumer confidence improves. Q: Can you explain the recent management changes at CBTL and the strategic direction moving forward? A: Richard Shin, CFO, noted that John Indebrich resigned as CEO of CBTL Global, and Peppard Minana has been appointed as the permanent CEO. The focus is on growing the US market and expanding the franchise model outside of Malaysia and Singapore. They have restructured to reduce GNA costs and improve efficiency. Tara Hinkle, with a strong background in network development and franchise management, has joined the team to drive growth. Q: What are the plans for CapEx, and how does it align with the franchising model? A: Richard Shin, CFO, stated that while CapEx is slightly higher, it is focused on technology investments, such as loyalty programs and CRM systems, rather than just store buildouts. They are also expanding commissary capacity. The franchising model will reduce the need for store-related CapEx, allowing for more strategic investments in technology and infrastructure. Q: What is the current status and future potential of Smash Burger? A: Richard Shin, CFO, acknowledged challenges with Smash Burger but emphasized the brand's potential in the $100 billion US burger market. They have made management changes, with Jim Sullivan now leading the turnaround efforts. The focus is on improving transaction counts and menu innovation. They are implementing a high-low pricing strategy to attract customers and drive repeat visits. Q: How is Jollibee addressing the impact of California wage hikes on margins? A: Richard Shin, CFO, explained that they are diluting the impact by expanding outside California and taking strategic price increases. They aim to manage costs while driving top-line growth, with a focus on maintaining high average daily sales (ADS) to offset increased labor costs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
