Jollibee Foods Corp. (JFC), the country’s largest fast-food chain, will be allocating a larger capital expenditure in 2014 as it targets to grow the number of new stores it intends to open next year.
Ysmael Baysa, chief financial officer of JFC, said in an interview with reporters that the listed firm may also have to increase its capital expenditure next year, since it plans to boost its store openings by 10 percent.
From a P5.5-billion capital spending this year, the food group may spend approximately P6 billion in 2014 for store expansion and store innovations.
“Normally, we could grow our store opening at least 10 percent. It is just continuing [trend last year]. It is a deliberate growth model we’ve been pursuing,” Baysa said after the EJAP-ING investment forum held on Wednesday in Makati City.
For this year alone, JFC plans to build 200 stores of which 100 will be built inside the country and the other half overseas. Fifty of the stores that will open overseas will be in China, while the other 50 will be built in countries where JFC has a presence.
“Two-hundred is a realistic target although we hope we’d be able to exceed that. Usually, opening is stronger in the second half,” Baysa said.
According to him, the group’s 2013 capex of P5.5 billion is actually enough to accommodate 300 new stores. For the full-year 2013, JFC is seeing a 12-percent growth in its earnings per share from the introduction of new products and election spending.
“We should grow our earnings per share to at least 12 percent [in 2013],” Baysa earlier said, adding that the yearly growth target of JFC has always been pegged at that level.
The company is also looking to end this year with 500 stores in China.