JOLLIBEE FOODS Corp. (JFC) is allocating P20-23 billion for its capital expenditure (capex) budget for 2024 as it plans to open 700 to 750 new stores, the listed fast food giant announced on Tuesday.
“Funding for the 2024 capex will come from JFC’s internally generated funds, issuance of preferred shares, and bank loans,” the company said in a regulatory filing.
The budget covers expenses for “new stores and renovations, construction of a new commissary in Cebu, maintenance of existing commissaries, main office improvements, and investments in technology,” it added.
The company opened 658 stores and expanded its store network by 6.3% annually to 6,885 by the end of 2023, JFC also said.
For 2023, the company saw 16% increase in its attributable net income to P8.77 billion due to stronger revenues.
The higher net income came as the company’s revenue grew by 15.2% to a record high of P244.11 billion last year, JFC Chief Executive Officer Ernesto Tanmantiong said.
“Overall system-wide sales for 2023 grew by 16.3% to P345.3 billion, driven by a 10.6% growth in same store sales and 5.4% from new stores,” he said.
“Our full year 2023 results reflect the strength of our execution and resiliency of our brands,” he added.
He said the company’s Philippine business saw a 17.6% growth in system-wide sales, while its international business rose by 14.4%.
The company’s transaction volume increased by 8.2%, while the average check surged by 5.2%. Operating profit rose by 45% to P14.4 billion.
“Notably, our Jollibee brand, which has over 1,600 stores globally and accounts for 49% of JFC’s system-wide sales, grew by 18.5% in 2023,” Mr. Tanmantiong said.
JFC projected that its system-wide sales growth could range from 10% to 14% this year, while same-store sales growth could reach 5% to 7%, and the store network could expand by 7% to 8%. Operating profit is forecasted to grow by 10% to 15%.
To achieve the company’s targets, Mr. Tanmantiong said that JFC will focus on the global expansion of its Jollibee brand as well as the growth of its coffee and tea business.
Some of JFC’s coffee and tea brands include The Coffee Bean & Tea Leaf (CBTL), Highlands Coffee, and Common Man Coffee Roasters.
JFC will also concentrate on expanding into multiple lower-tier cities across China and maintaining strong growth and market leadership in the Philippines, Mr. Tanmantiong said.
“We will ramp up franchising to support our global expansion. We will also accelerate our digital transformation and bring capabilities on-par with global quick service restaurant leaders to increase operational efficiency and further improve customer experience and revenue management,” he added.
Of JFC’s 3,546 international stores, 567 are in China, 389 in North America, 337 in Europe, the Middle East, and Africa, 779 under Highlands Coffee mainly in Vietnam, 1,164 under CBTL, and 310 under Milksha.
The company has 3,339 stores in the Philippines.
JFC’s largest brands by store outlets worldwide are Jollibee at 1,660, CBTL at 1,164, Highlands Coffee at 779, Chowking at 613, and Mang Inasal at 573.
On Tuesday, JFC shares improved by 0.77% or P2 to P262 apiece. — Revin Mikhael D. Ochave