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Fast food billionaire Tony Tan Caktiong’s Jollibee Foods Corp. (JFC) remains bullish on growth prospects as it enters the second half of 2023.
Richard Shin, the company’s chief financial officer, said they were on track to meet their target revenue growth of 15 percent to 20 percent this year. Existing branches will also boost sales, with same-store sales growth for the year projected at 7 percent to 10 percent.
“Revenue growth will be driven by the continued success of the [Philippine] business and the accelerating growth of our international business, supported by continued investments in JFC’s organization and technology,” Shin said during the company’s annual stockholders’ meeting on Friday.
Jollibee is a global fast food conglomerate that owns local restaurants Mang Inasal, Red Ribbon and Chowking and overseas names such as The Coffee Bean and Tea Leaf and Smashburger.
The company earlier said it planned to add 550 to 600 new outlets this year. It ended 2022 with 6,542 stores worldwide.
During the meeting, Shin said second quarter 2023 growth would likely come in slower than previous quarters “due to the higher base.”
“We are confident that JFC Group is resilient and well-positioned to drive near-term growth despite 2023’s macroeconomic challenges. We have clear priorities on profitability, while continuing to invest strategically for long-term growth and value for shareholders,” Shin said.
Ernesto Tanmantiong, Jollibee president and CEO, said they were focused on international expansion in the United States and China.
“Our focus remains on expanding globally in the strategic categories of chicken and burgers, Chinese cuisine, and coffee and tea, by investing in our lead brands Jollibee, Smashburger, Tim Ho Wan, and The Coffee Bean and Tea Leaf,” he said.
Jollibee was open to new acquisitions but growing their core brands remained a key priority, said Tan Caktiong, the chair of Jollibee.
“We have very strong brands with great potential to grow globally,” he said during the meeting.
“We will be very selective about acquisition opportunities and consider only those that will add value to JFC,” Tan Caktiong added.
Jollibee maintained its postpandemic sales momentum during the first quarter.
Net income from January to March fell 10.6 percent to P2.1 billion, mainly due to the absence of asset sale gains from last year. Revenues grew 28.5 percent to P55.1 billion while systemwide sales surged over 31 percent to P78.6 billion.