Jollibee sells stake in US restaurant business
After recently reducing its interest in China, homegrown fast-food giant Jollibee Foods Corp. (JFC) is selling out of a niche restaurant business in America, citing a strategy to focus on larger businesses in this market.
Through wholly owned subsidiary Jollibee Worldwide Pte. Ltd. (JPWL), JFC is divesting its 80.55-percent stake in Chow Fun Holdings LLC (Chow Fun)—developer and owner of Jinja Bar and Bistro, the company told the Philippine Stock Exchange.
“JFC’s divestment of its share holding in Chow Fun is part of its intention to concentrate its resources in building its larger businesses,” the disclosure said.
Jinja Bar has six restaurants in the US: three in New Mexico, two in Albuquerque and one in Santa Fe. JFC initially acquired a 12-percent stake in Chow Fund in 2008 and raised its stake to 80.55 percent in 2011.
Under the divestment deal, Chow Fun will pay JPWL $1.6 million to redeem JPWL’s 2,900 membership units.
JFC’s biggest business in North America, to date, is Denver-based premium hamburger chain Smashburger which has 378 stores, mostly in the US. JFC has a 40-percent stake in Smashburger plus an option to acquire full control through 2026.
Smashburger, JFC’s ticket to the mainstream American hamburger market, serves 100-percent certified Angus beef burgers that are smashed on the grill to sear in the juices, creating what has been described as “upscale quality burger served at a great value.”
It also operates Philippine brands in the US: 34 Jollibee stores, 33 Red Ribbon stores and 16 Chowking stores.
Globally, JFC has a total of 3,236 stores, of which 2,565 are in the Philippines. The number does not include JFC’s interest in Smashburger and its 50 percent in joint ventures for the following stores: Highland Coffee (Vietnam and Philippines), Pho24 (Vietnam, Indonesia, Cambodia, Korea and Australia) and 12 Hotpot (China).
Earlier in the week, JFC also announced the sale of one of its businesses in China, citing a decision to focus on Yonghe King business, its largest business in this territory.
