With 6,885 stores at the end of 2023, the company plans to open another 700 to 750 outlets this year and boost its network in multiple lower-tier cities in China as it ramps up franchising to expand globally.
Backed by the company’s growth strategy “we will be able to achieve our goal to triple our value in five years,” Tanmantiong said in a statement on Tuesday, referring to the company’s net income.
Jollibee reported a profit of 8.77 billion pesos (US$158 million) for the past year, below analysts’ consensus estimate of 8.96 billion pesos, but 16% higher from a year ago.
Aggressive expansion plans in China of the food chain known for its crispy fried chicken and sweet spaghetti comes as the Philippines’ assertive stance in the South China Sea has made some businesses cautious.
Tycoon Teresita Sy-Coson, whose family owns the country’s biggest lender and shopping malls, late last year urged the government to steer clear of the US-China competition as the Philippines’ pushback against Beijing’s sweeping maritime claims has started to stir unease in the corporate world.
Jollibee, in its press statement, made no mention of Philippine tensions with China nor the sea conflict, and instead highlighted its plans to expand in the world’s second-biggest economy. Jollibee has 567 stores in China across a handful of fast-food brands.
To support growth this year, the fast food giant is allotting 20 billion to 23 billion pesos in capital spending. The company projects operating profit to grow between 10% and 15% in 2024, after rising by 45% to a new record in the past year.
The company announced plans on Monday to raise as much as 8 billion pesos from the sale of preferred shares to refinance financial obligations including its callable preferred shares due in October and to fund general business purposes.
Jollibee has “generated significant cash flow” which puts it in a strong position to implement its growth strategy for this year, CFO Richard Shin said in Tuesday’s statement.
Shares of Jollibee climbed as much as 1.5% in Manila morning trading.