The Philippines’ largest fast food chain operator, Jollibee Foods Corp. (JFC), sees its revenues and net income hitting double-digit growth rates yearly in the next five years, on the back of strong domestic and international demand.
Despite posting single-digit growth rate in the first nine months of the year, the company is confident it will gain much more starting in the fourth quarter, as the it has been aggressively putting up stores in various countries across the globe.
“We expect fourth quarter results to be good,” JFC chairman Tony Tan Caktiong told The Manila Times on the sidelines of the Asia Pacific Entrepreneurship Awards (APEA) on Friday. “I think we should be on track. Growth will be driven by local and international operations.”
Tan Caktiong, who was awarded top entrepreneur of the year by the APEA, said his company is sticking to its double-digit growth target, and is confident that it would hit the goal despite recording only single-digit growth in the first nine months of the year.
In the first nine months of 2015, Jollibee’s net income climbed 6.7 percent to P3.9 billion, from P3.7 billion a year ago.
In the third quarter alone, profits inched up 5.4 percent to P1.26 billion, from P1.19 billion last year.
Besides expanding its stores and acquiring new businesses abroad, the company needs its revenues and net income to grow double-digit for it to reach its goal of becoming one of the world’s top five quick-service restaurants (QSR) in seven years’ time.
The iconic homegrown Jollibee is now the10th largest QSR in the world, in terms of market capitalization, according to Bloom berg data cited by the company.
JFC has been exploring new markets worldwide by putting up flagship Jollibee stores where there is a concentration of overseas Filipinos.
Next year, the company plans to put up a Jollibee store in the United Kingdom and Italy, and soon in Australia, Canada, Japan, Malaysia, and Oman.
A total of P10.4 billion budget will be allotted for next year, which is higher than the firm’s P9.1-billion capital expenditure for 2015.
Out of the 2016 budget, P7.5 billion will be used for new store investments and existing
store renovations, while the rest will mostly be for commissary expansion, the firm announced earlier.
As of end-September, JFC was operating 3,023 stores, of which 2,393 are in the Philippines and 630 are abroad.
JFC also has 50-percent interest in several joint ventures overseas, namely: Highlands Coffee in the Philippines and Vietnam (87 stores); Pho 24 in Vietnam, Indonesia, Cambodia, Korea and Australia (38 stores); and 12 Sabu in China (21 stores).
Besides Jollibee, other JFC brands are Chowking, Greenwich, Red Ribbon, Mang Inasal, and Burger King.