Jollibee to further expand footprint with P12B capital outlay
Fastfood giant Jollibee Foods Corp. is allotting P12 billion for the continued expansion its store network this year aimed at accelerating its growth and profitability.
The programmed budget is 36.5 percent higher than the P8.8 billion spent by Jollibee in 2017.
Jollibee opened a record high 465 new stores last year (328 in the Philippines and 137 overseas), bringing the group’s total store network to 3,797 worldwide. Systemwide sales, a measure of all sales to consumers both from company-owned and franchised stores, increased by 15.2 percent, driven by new store openings and strong same store sales.
Sales of the Philippine business rose 13.2 percent while those abroad grew 23.4 percent.
“The gradual price adjustments help to continuously drive volume growth of consumer visits per store despite rising inflation rate in the country. We expect to eventually recover our profit margins in 2018. Meanwhile, all regions in JFC’s foreign markets: China, US, Southeast Asia and the Middle East were profitable in 2017 with profit of total foreign business rising 2.4 times compared to 2016,” said Jollibee CFO Ysmael V. Baysa.
The homegrown fastfood firm grew its net income by 15 percent last year to P7.1 billion.