Homegrown fastfood giant Jollibee Foods Corp. reported a 14.7% year on year decline in its first quarter profit to P1.5 billion, largely due to losses from Smashburger.
Smashburger was consolidated in the financial results of JFC in April 2018 when JFC assumed 85% of the US hamburger chain.
System wide sales, a measure of all sales to consumers both from company-owned and franchised stores, expanded by 18.1% to P54.3 billion. This was driven by the firm’s global store network expansion, which accounted for 16.3%.
Same store sales growth, which pertains to restaurants that were already open for at least 15 months, contributed only 1.9% due to weak consumer spending as a result of high inflation.
System wide sales of the China business declined by 6.2% due to the negative impact of foreign currency changes, decline in store count and slower growth of delivery business.