Jollibee group sets record store expansion in 2023
Jollibee Foods Corp. (JFC), the global fast food conglomerate of billionaire Tony Tan Caktiong, is preparing its biggest store expansion push in 2023 after last year’s record openings helped fuel earnings past the prepandemic level.
JFC said in a stock exchange filing on Thursday it was opening 550 to 600 new branches this year to sustain growth.
It launched 542 stores in 2022— the company’s highest ever in its 45-year history.
This comes as the operator of some of the country’s biggest restaurant names such as Jollibee, Mang Insasal and Chowking as well as Coffee Bean & Teal Leaf and Smashburger deepens its global and domestic presence.
On Thursday, JFC announced that net income last year jumped 26.4 percent to P7.56 billion. This was 19.4 percent above its prepandemic net income of P6.33 billion.
JFC, which ended 2022 with 6,480 stores, increased profitability amid a boom in restaurant sales after harsh pandemic restrictions were lifted and despite cost pressures and global supply chain disruptions that led to product shortages.
“Looking ahead, while we expect macroeconomic challenges to persist in 2023, we are confident that the JFC Group is resilient and well-positioned to drive near-term growth,” company CEO Ernest Tanmantiong said in a statement on Thursday.
“We have clear priorities on profitability while we continue to invest strategically to deliver long-term growth and value for our shareholders,” he added.
In 2022, systemwide sales surged 40.2 percent to P296.82 billion while revenues expanded by 38 percent to P211.9 billion. Same store sale last year also grew 27 percent.
“Dine-in sales improved significantly driven by increased mobility due to easing of restrictions in markets where we operate,” the company said.
“Off-premise channels, particularly delivery showed continued resilience and we expect sustained robust growth as we improve further our digital touchpoints,” it added.
Jollibee’s operating income last year grew 58.4 percent to P9.9 billion. Margins also improved to 4.7 percent from 4.1 percent.
“Despite industry-wide headwinds, margins for the fourth quarter remained resilient due to pricing actions and cost management initiatives,” said JFC chief financial officer Richard Shin.
The company is expecting to sustain growth in 2023 with an added boost coming from the gradual reopening of China, where it maintains a significant presence.
It said on Thursday full-year systemwide sales this year would grow 15-20 percent while same store sales growth was projected to increase by 7-10 percent.
JFC said operating income in 2023 would also expand by 20-25 percent.
For the full-year, it was allocating a capital spending budget of P17 billion -P19 billion, the company said.