Jollibee Foods Corporation Recorded Sales of PHP 345.3 B in 2023, Plans to Open 700 to 750 Stores in 2024

One of the largest Asian food service companies, Jollibee Foods Corporation (JFC), revealed that its net income attributable to equity holders of the parent company (NIAT) for the fourth quarter of 2023 was Php1.9 billion, up from Php319.6 million in the fourth quarter of 2022. Notwithstanding a one-time gain of Php4.9 billion from land conveyance and disposals in 2022, NIAT increased by 16.0% to Php8.8 billion for the year. For the quarter, basic earnings per share (EPS) increased by 782.3% to Php1.641, and for the full year, it increased by 16.5% to Php7.455.

In a PSE Disclosure, JFC CEO, Ernesto Tanmantiong gave the following statement on JFC’s 2023 performance: 

“Our full year 2023 results reflect the strength of our execution and resiliency of our brands. We achieved an all-time high revenue of Php244.1 billion, a 15.2% increase year-over-year which translated to a new record operating profit of Php14.4 billion, up by 45.0% compared to full year 2022. Year on year, we improved gross profit and operating profit margins each by 120 basis points (bps), reinforced by our cost efficiency initiatives and our ability to control non-inventory-related costs.

We closed the year with a new system-wide sales (SWS) record, surpassing the Php300-billion mark. Overall system-wide sales for 2023 grew by 16.3% to Php345.3 billion, driven by a 10.6% growth in same store sales (SSS) and 5.4% from new stores. The Philippine business, which accounts for 61.0% of JFC’s consolidated SWS delivered a 17.6% growth in SWS while the international business grew by 14.4%. Notably, our Jollibee brand, which has over 1,600 stores globally and accounts for 49.0% of JFC’s system-wide sales grew by 18.5% in 2023.

JFC opened 658 stores during the year and grew store network by 6.3% to 6,885 stores at year-end, both above our guidance for 2023 of 550-600 new stores and 5.0% increase in store network.

I am pleased with our results for 2023 which showcased our continued ability to deliver sustainable sales and profit growth.

Looking ahead to 2024 and beyond, we will continue to focus on our priorities. We will scale the business with our four big focus areas: (1) Expand our Jollibee brand internationally; (2) Grow our coffee and tea business; (3) Exponentially grow in China in multiple lower tier cities; and (4) Sustain our strong growth and market leadership in the Philippines. We will ramp up franchising to support our global expansion. We will also accelerate our digital transformation and bring capabilities on-par with global Quick Service Restaurant leaders to increase operational efficiency and further improve customer experience and revenue management. While we work on driving JFC’s long-term growth, we will remain committed to governance, ethics, sustainability, and responsible business practices. Our strategies combined with a portfolio of strong and valuable brands and the support of our talented global team give me the confidence that we will be able to achieve our goal to triple our value (in terms of net income attributable to equity holders of the Parent Company) in five years."

​Fourth Quarter and Full Year 2023 Financial Highlights

Comparing the same periods last year, system-wide sales (SWS), a measure of all sales to consumers from company-owned and franchised locations, increased by 9.6% for the quarter and 16.3% for the full year. For the quarter and the entire year, revenues increased by 8.4% and 15.2%, respectively.
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The Philippine business's SWS increased by 17.6% over the course of the year, propelled by a 13.9% increase in SSS and a 3.8% contribution from new outlets. While the average check climbed by 5.2%, the transaction count, or volume, improved by 8.2%.

Operating profit increased by 33.2% to Php2.5 billion during the quarter, which led to an improvement in operating profit margin of 70 basis points. While operating expenses climbed by 70 basis points during the quarter due to heavier advertising and promotions, the gross profit margin increased to 19.7% from 18.3% in the corresponding quarter last year. Operating profit rose by 45.0% to Php14.4 billion for the year, with margins rising by 120 basis points annually due to greater gross profit margins.
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During the quarter, the parent company's net income attributable to equity holders (NIAT) was Php1.9 billion, as opposed to Php319.6 million in the fourth quarter of 2022. Notwithstanding a one-time gain of Php4.9 billion from land conveyance and disposals in 2022, NIAT increased by 16.0% to Php8.8 billion for the year. For the quarter, basic earnings per share (EPS) increased by 782.3% to Php1.641, and for the full year, it increased by 16.5% to Php7.455.

JFC CFO, Richard Shin commented, “2023 was another remarkable year, our strong execution drove sales and operating profit growth at the higher end of our guidance. We generated significant cash flow putting us in an excellent position to execute our growth strategy for 2024. While we continue to open new stores this year, we remain focused on managing elements within our control, including driving top line through omni channels, effective cost management and operational efficiency. This gives us the confidence that we will continue to deliver revenue and profit growth, as well as margin and operating cash flow expansion in 2024.”

At the end of December 2023, the network of JFC stores had grown 6.3% more than it had the previous year. JFC has 6,885 locations worldwide: 3,339 in the Philippines and 3,546 abroad, with 567 in China, 389 in North America, 337 in EMEA, 779 with Highlands Coffee, primarily in Vietnam, 1,164 with CBTL, and 310 with Milksha. According to retail locations globally, Jollibee has 1,660 stores, CBTL has 1,164, Highlands Coffee has 779, Chowking has 613, and Mang Inasal has 573.​

Full Year 2024 Guidance

JFC anticipates full-year system-wide sales growth to be in the range of 10%–14% based on its aim for 2024, with same-store sales growth of 5%–7% and store network growth of 7%–8%. The growth in operating profit is expected to be between 10% and 15%.

With 700–750 owned and franchised locations (gross) planned by JFC by 2024, the company anticipates capital expenditures (CAPEX) to be between Php20.0 and Php23.0 billion.

The JFC Board of Directors approved on March 8, 2024, the following:

• The declaration of a regular cash dividend of Php8.20525 per share for Series A preferred shares, for a total payout of Php24.6 million. The regular cash dividend will be given to JFC stockholders of record as of March 25, 2024 (ex-dividend date of March 22, 2024). Payment date is on April 15, 2024.
• The declaration of a regular cash dividend of Php10.60125 per share for Series B preferred shares, for a total payout of Php95.4 million. The regular cash dividend will be given to JFC stockholders of record as of March 25, 2024 (ex-dividend date of March 22, 2024). Payment date is on April 15, 2024.

​Recently, Jollibee has been recognized as the second fastest-growing restaurant brand in the world, according to the latest annual brand ranking report by Brand Finance, the world’s leading independent brand valuation agency. 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. In addition, Jollibee is the only Philippine brand listed in the 2024 Top 25 Most Valuable Restaurant Brands and Top 10 Strongest Restaurant Brands