Jollibee Foods Corporation Continues 2023 Growth Momentum Into Q12024

The Jollibee Group, one of the largest and fastest-growing food service companies in the world, continues to achieve sustainable sales and profit growth in Q12024 after delivering strong results in 2023.

In his message during the Company’s Annual Stockholders’ Meeting, Jollibee Group President and CEO Ernesto Tanmantiong shared that the Company started the year with impressive performance. It exceeded its profit outlook for the first quarter of 2024, driven by robust revenue growth of 11.3% that translated to 13.7% and 26.9% growth in operating income and net income attributable to equity holders of the Parent Company, respectively. SWS also grew by 10.4% to Php86.8 billion in Q1 2024, with both the Philippine and international markets delivering growth in double-digits.

“Our results reflect the strength of our operations and resiliency of our brands. All these achievements would not have been possible without the people who share our vision of becoming one of the top 5 restaurant companies in the world and our mission of bringing the joy of eating to everyone,” shared Tanmantiong.

Record-breaking 2023

The Company’s impressive Q1 2024 came on the back of a stellar FY 2023, where it achieved 15.2% year-on-year (YoY) revenue growth, reaching an all-time high total revenue of Php244.1 billion. It also set a new record operating profit of Php14.4 billion–a 45.0% increase compared to full year 2022. Meanwhile, net income attributable to equity holders of the Parent Company grew by 16.0% to Php8.8 billion last year.

Tanmantiong shared that the Company’s full-year system-wide sales (SWS) for 2023 grew by 16.3% to Php345.3 billion. This was driven by a 10.6% growth in same-store sales (SSS) and 5.4% from new stores. The Philippine business, which accounts for 61% of Jollibee Group’s consolidated SWS delivered 17.6% growth while the international business grew by 14.4%. In addition, Jollibee Group opened 658 stores during the year, and its store network grew by 6.3% to 6,885 stores at year-end.

Growth Strategy

As part of its vision to become among the top five restaurant companies in the world, Tanmantiong outlined the company’s bold strategic roadmap for the next five years.

“In five years, we aim to triple Jollibee Group’s value in terms of net income attributable to equity holders of the Parent Company. With our portfolio of strong, valuable brands, the support of our global team, and our consistent efforts to drive long-term growth, we are confident in our ability to deliver on this goal,” Tanmantiong shared.

The Jollibee Group will continue to execute its growth strategy, which includes scaling the business in four key areas: (1) expanding Jollibee brand internationally; (2) growing its coffee and tea business; (3) exponentially growing in China; and (4) sustaining robust growth and market leadership in the Philippines.

Flagship brand Jollibee, which has over 1,600 stores globally and accounts for 49% of Jollibee Group’s SWS, has significantly grown by 18.5% in 2023. Recently, Jollibee has also been recognized as the second fastest-growing restaurant brand in the world, according to the latest annual brand ranking report by Brand Finance. Surging by an impressive 51% to USD 2.3 billion in brand value, Jollibee ascended from rank 20 to rank 17 in this year’s Global Restaurant Rankings.

The brand further solidified its position by achieving fifth place in the strongest restaurant brand category, elevating its rating from AA- to AAA. Furthermore, Jollibee is the only Philippine brand listed in the 2024 Top 25 Most Valuable Restaurant Brands and Top 10 Strongest Restaurant Brands.

In terms of global expansion, the Company is planning to ramp up franchising in key markets. It also aims to accelerate its digital transformation and bring capabilities on-par with global Quick Service Restaurant (QSR) leaders to increase operational efficiency and further enhance customer experience and revenue management.

Strategic Investments for Growth

Early this year, the Jollibee Group announced its investment in Botrista, Inc. which will provide commercial and strategic synergies with its coffee and tea brands. Last April, the Company also disclosed that it will have a 90% participating interest in Titan Fund II as Limited Partners with a capital commitment of $90 million. Titan Fund II will focus on strategic investments in food and beverage concepts with the objective to further grow Asia Pacific food service brands and/or bring strong global food service brands to Asia Pacific.

“The Jollibee Group will capitalize on these important opportunities to grow our business with strategic partners and investments and continue to create both near and long-term value for our stakeholders,” Tanmantiong said.

Sustainability Commitments

In 2023, Jollibee Group launched its Global Sustainability Agenda, aptly named Joy for Tomorrow. With pillars in Food, People, and Planet, Joy for Tomorrow provides a framework for growth that integrates sustainable practices into its business operations.

In the area of Food, the Jollibee Group remains steadfast in upholding the highest standards of food safety and quality. Reflecting its commitment to serving food that people trust, the Company was recognized with the prestigious 7-star rating–the highest rating given to participating organizations–for its exceptional Food Safety and Quality (FSQ) practices at the 9th International Best Practice Competition in 2023.

In the People pillar, the Jollibee Group garnered several accolades including TIME Magazine’s Best Companies in 2023 and the Gallup Exceptional Workplace Award, which underscores the Company’s dedication to fostering employee engagement and nurturing a strong workplace culture. In addition, Jollibee Group Foundation’s Farmer Entrepreneurship Program (FEP) continues to uplift farming communities in the Philippines, enabling 1,037 smallholder farmers to directly supply their produce to some JFC brands.

In line with its commitment to treating the Planet more responsibly, the Jollibee Group's four main manufacturing facilities have recently completed the installation of 16,800 solar panels, capable of producing up to 9.1 megawatts of clean energy. Additionally, in 2023, over 51% of waste from all manufacturing sites in the Philippines was disposed of through sustainable means, with the Mang Inasal Commissary achieving zero-waste-to-landfill status. More than 5,500 mangroves have also been planted through the efforts of employee volunteers in collaboration with various local government units and partners.

Jollibee Foods Corporation (JFC, also known as Jollibee Group) is one of the fastest-growing restaurant companies in the world. Its mission is to serve great-tasting food and bring the joy of eating to everyone through its 18 brands with over 6,800 stores across 33 countries.

The Jollibee Group has eight wholly owned brands (Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Yonghe King, Hong Zhuang Yuan, Smashburger); four franchised brands (Burger King, Panda Express, and Yoshinoya in the Philippines, and Tim Ho Wan in certain territories in China); 80% ownership of The Coffee Bean and Tea Leaf; 60% ownership in the SuperFoods Group that owns Highlands Coffee; and 51% ownership of Milksha, a popular Taiwanese bubble tea brand. JFC also has a business venture with award-winning Chef Rick Bayless for Tortazo, a Mexican fast-casual restaurant business in the United States.

The Jollibee Group, through its subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) owns 92% participating interest in Titan Dining LP, a private equity fund that owns the Tim Ho Wan brand. The Jollibee Group has a joint venture with the THW Group to open and operate THW restaurants in Mainland China. The Company also established a joint venture company that will own and operate Tiong Bahru Bakery and Common Man Coffee Roasters in the Philippines. Recently, the Jollibee Group signed agreements to own 10% ownership in Botrista, a leader in the beverage technology space. The Company also owns a 90% participating interest in Titan Dining Partners II Ltd to further grow Asia Pacific food service brands and/or bring strong global food service brands to Asia Pacific.

The Jollibee Group has launched its global sustainability agenda dubbed Joy for Tomorrow, which aims to strengthen the Company’s commitment to sustainable business practices. The agenda centers on the key pillars of Food, People, and Planet, and consists of 10 focus areas namely: food safety, food quality, nutrition & transparency, employee welfare, farmers livelihood, community support, good governance, packaging & recycling, waste reduction, and energy & water efficiency. Each focus area sets goals and initiatives that contribute and align with the United Nations Sustainable Development Goals (UN SDGs).

The Jollibee Group was named the Philippines' Most Admired Company by the Asian Wall Street Journal for ten years. It was also honored as one of Asia's Fab 50 Companies and among the World's Best Employers and World’s Top Female-Friendly Companies by Forbes. The Company is also a three-time recipient of Gallup’s Exceptional Workplace Award and was recently cited in TIME’s List of the World’s Best Companies.