MANILA—Homegrown fast food giant Jollibee Foods Corp. (JFC) earmarks Php14 billion in capital expenditures (capex)for 2017 after its profit surged by 24.6 percent to Php6.14 billion last year on higher sales of its restaurant chains.
“(The capex is) mainly for new store expansion and renovation (Php7.6 billion) and commissary investments (Php5.6 billion). We look forward to continued strong profitable growth in the years ahead in the Philippines and abroad,” said JFC Chief Executive Officer Ernesto Tanmantiong.
JFC told the local bourse its system wide retail sales, a measure of al sales to consumers, grew by 14.1 percent to Php149.14 billion last year from Php130.73 billion the previous year.
Net income attributable to equity holders of the parent company increased by whopping 63.7 percent in the fourth quarter to Php1.75 billion from Php1.07 billion during the same period in 2015.
For the quarter, system wide sales of the Philippine business grew by 14 percent; while the foreign business grew by 14.5 percent with China growing by 6 percent, United States by 19.4 percent and Southeast Asia and the Middle East by 33 percent.
This was the highest foreign business’ highest quarterly sales growth in 2016, driven by the recovery in China, particularly the Yonghe King brand.
The Jollibee Group, the largest Asian food service company, opened 340 stores, the highest number of store opening in a single year in JFC’s history.
“This was made possible by improving the return on investments on our stores and by increasing our organization capability to build and open more stores, in better locations and with better quality than ever before –on a worldwide basis. We also renovated 200 existing stores in the Philippines and 150 stores abroad,” added Tanmantiong.
JFC operates the largest food service network in the Philippines. As of Dec. 31, 2016, it was operating 2,643 restaurant outlets in the country carrying Jollibee brand, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King.
Abroad, it was operating 611 stores: Yonghe King, Hong Zhuang Yuan, Dunkin’ Donuts, Jollibee, Red Ribbon and Chowking.
The JFC Group ended the year 2016 with 3,254 stores worldwide.
JFC also has a 50-percent interest in joint ventures for the following stores: Highlands Coffee 170, Pho 24; a 48-percent interest in joint venture 12 Hotpot and a 40-percent interest in Smashburger that has 384 outlets, mostly in the United States.
These joint ventures have a total of 612 stores worldwide, which are not included in JFC’s consolidated store count.