Jollibee plans Wall St debut of int’l business
Fast-food giant Jollibee Foods Corp. (JFC) is making its boldest move yet in three decades, with a planned spinoff and United States listing of its international operations.
The company—which has long been aspiring to be among the world’s five biggest restaurant chains—on Tuesday disclosed its decision to split its business into two entities, as Jollibee gears up to further beef up its presence overseas.
Foreign and local advisors have been tapped to study the prospect of pursuing this shift, with a target to complete this in “late 2027.”
Under its plan, the proposed Jollibee Foods Corp. International would house all its operations in markets abroad.
“Built on a capital-light model with significant whitespace for expansion, it is positioned to operate in markets that support companies pursuing international scale, innovation and long-term global growth,” the group said.
Its domestic business, meanwhile, would remain listed on the Philippine Stock Exchange.
Once finalized, the group said current JFC shareholders would receive shares in the international arm corresponding to their existing interest in the company.
The shareholders may also opt to hold or dispose of them, based on their investment preferences.
Investors cheered Jollibee’s plan, which will unlock the value of the homegrown company’s globalization initiatives. Its share price surged by 14.5 percent to close on Tuesday at P210, giving it a market capitalization of P205.52 billion.
However, the stock is still 21.6 lower than its 52-week high of P268 per share at the Philippine Stock Exchange, currently one of the worst performing bourses in the world.
A homegrown firm extremely known for its fried chicken “Chickenjoy,” Jollibee has a portfolio of 19 brands with more than 10,000 stores and cafés across 33 countries. Outside the Philippines, its largest markets are China, United States and Vietnam.
Aside from flagship Jollibee, it owns brands like Chowking, Greenwich, Red Ribbon, Mang Inasal, Tim Ho Wan, among others.
Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said this paves the way for “higher growth potential” as Jollibee taps into bigger markets.
Separating its international business would also give more room for the group to “refresh and grow” its established local brands, said Colet.
“Jollibee is certainly starting the year with a bang with its most ambitious restructuring and capital markets exercise since it listed on the PSE in 1993,” he said.
“It’s a novel way for a Philippine blue chip to list its foreign operations while ensuring that eligible shareholders at the time of the spinoff are able to capture the complete economics of the move,” Colet added.
