Jollibee sets P20-B capital build-up

MANILA, Philippines – Homegrown fast food giant Jollibee Foods Corp. (JFC) plans to increase capital by as much as P20 billion over the next three years through the sale of preference shares, as it expects to return to a prepandemic pace of global store expansion by 2022.

At the company’s shareholders ‘meeting on June 26, JFC President Ernest Tanmantiong also said that in three years’ time, the group would probably be able to achieve its long-standing goal of having a 50-50 percent split between Philippine and offshore businesses in terms of contributions to the total revenue. About 40 percent of the company currently comes from overseas activities.

In 2021, Tanmantiong said at least 450 new stores would be opened across JFC’s various restaurant brands here and abroad, as a record capital expenditure of P12.2 billion was earmarked out of internally generated funds and financial investments.

“By 2022, when the world returns to normal, we expect to open at least 500 stores – similar to how we felt before the pandemic, and probably even higher than 500 in the following years,” Tanmantiong said.


As China and the United States recovered more quickly from the pandemic than elsewhere, he said international business was likely to drive JFC’s sales and profit growth. As the Philippine recovery is also underway as the lockdown restrictions are lifted, he said JFC could accelerate the new store expansion in the coming months.

In the midst of the pandemic that began to hit JFC hard in 2020, prompting the group to streamline operations and close unprofitable stores, JFC still opened a total of 338 new stores – 81 in the Philippines and 257 abroad. This marked the first time in its history that overseas store openings exceeded the local rollout of stores.

JFC, one of Asia’s most valuable restaurant chains, operates 17 brands in 33 countries. At the end of May, it operated 5,815 stores worldwide, of which 3,209 were in the Philippines and 2,606 abroad. It had 402 stores in China, 347 in North America and 531 through SuperFoods mainly in Vietnam.

The group’s largest brands in stores worldwide are Jollibee with 1,492 stores, Coffee Bean & Tea Leaf with 1,052, Chowking with 616, Mang Inasal with 585 and Highlands Coffee with 468.

JFC Chairman Tony Tan Caktiong said the group expected nearly 90 percent of its employees to be vaccinated, which increased the prospects for recovery.


At its meeting on June 26, shareholders approved amendments to JFC’s Articles of Association to reclassify 20 million common stock out of its approved holding to 20 million cumulative, non-voting, non-participating and non-convertible, perpetual preferred shares that will be offered for as much as P1,000 per. Shares.

The initial tranche will consist of up to 12 million preferred shares, potentially generating up to P12 billion. In new capital.

JFC will seek off-shelf registration for the 20 million preferred shares to have room to offer them as needed for a period of three years, subject to registration and listing requirements.

JFC CFO Ysmael Baysa told shareholders that the proceeds would be used to strengthen the company’s balance sheet and eliminate currency exposure by withdrawing perpetual bonds in dollars and reducing other debt obligations.

JFC’s credit rating will be even higher as we have an even stronger responsibility to pay all our financial obligations and this will be indicated by better financial conditions, which also means that if we were to borrow in the future, our interest rate would be lower. , because our credit rating will be stronger, ”said Baysa.

Baysa assured shareholders that the issuance of preference shares would not affect JFC’s annual cash dividend policy of paying out 33 percent of the attributable net income.


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