JOLLIBEE FOODS CORP. has given up its restaurant interests in Taiwan and Shanghai as part of the rationalization of its regional operations.

The company also said it needed to focus on ?building bigger brands? in China.

In a disclosure to the Philippine Stock Exchange yesterday, JFC said it had signed a deal to take out Lao Dong and Chun Shui Tang from its overseas business portfolio effective immediately. These businesses account for less than 1 percent of the worldwide sales of JFC.

The company, which owns 70 percent of Lao Dong Pte. Ltd. (Singapore), agreed with its partners to dissolve the joint venture that owns and operates eight Lao Dong stores in Taiwan.

JFC?the exclusive franchisee in China of Chun Shui Tang (CST) Tea House, a brand that originated in Taiwan, also terminated this franchising agreement after shutting down its two CST stores in Shanghai earlier.

It, however, maintains Yonghe King and Hong Zhuang Yuan businesses in China. These brands have 197 stores as of end-October and now account for 9 percent of the company?s worldwide sales.

JFC?s offshore business grew by 53 percent in the third quarter of 2009 compared to the same quarter in 2008. Excluding the effect of the acquisition of Hong Zhuang Yuan in 2008, JFC?s sales in China in the third quarter of 2009 were higher by 36 percent compared to year-ago level.

The local fast food chain expects to end the year with 35 stores in mainland China. It plans to open more stores and acquire new restaurant businesses in the years ahead, the company said in the statement.

?Maybe these two restaurants are not performing as well as expected,? said Joseph Roxas, president of local stock brokerage Eagle Equities Inc.