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Jollibee [JFC 258.00 ?0.8%] [link] posted an FY24 net income of P10.79 billion, up 20.1% from its FY23 net income of P8.98 billion, driven by a 13% increase in system-wide sales to P390 billion. PH-based systemwide sales were up 10.1%, while international systemwide sales were up 17.6%. The PH-based stores lead in terms of same-store sales growth, posting a 7.5% improvement, with international stores collectively rising just 2.8% (dragged down by the -11.2% performance of JFC’s stores in China). JFC said it’s looking to open 700-800 stores in FY25 “across all brands and regions”. It’s targeting an 8-12% systemwide sales growth and a 4-6% same-store sales growth.
MB BOTTOM-LINE: JFC’s post-COVID focus on jurisdictional diversification is a gift that I attribute directly to former President Duterte’s catastrophic mishandling of the pandemic response and the economic fallout that flowed from one of the world’s worst lockdowns. Those were also conditions that forced JFC to reconsider its product delivery to embrace dine-out options like drive-through, and to strategize potential acquisitions based on menu fit and suitability for delivery. The hard pivot to coffee caught many casual observers by surprise, but global fast-food trends have been heading in this direction for a while now. I don’t agree with all of their coffee moves (I don’t like CBTL), but I like what they’re cooking up in Vietnam with Highlands Coffee and the Compose Coffee acquisition has been great from the start. Kape tayo!
