the Outsider - PSE Points to Ponder

  Jollibee Foods Corp. is still growing fast, still opening stores at a record pace, and still telling a compelling story about Filipino corporate ambition. But as its 2025 Annual Report makes plain, the Philippine business remains the group’s financial anchor, while the global portfolio is asking more of shareholders than it has yet conclusively given back. Jollibee Foods Corp. had, on paper, a very good 2025. Revenues rose 13.0% to ₱305.1 billion , systemwide sales climbed 16.6% to ₱455.1 billion , and operating income increased 19.3% to ₱20.15 billion . The group opened 1,126 stores , the highest annual total in its history, and management quite understandably presented the year as proof that both the Philippine and international businesses retain momentum. But equity investors are not paid in momentum; they are paid in returns. And here the 2025 numbers are much less flattering. Net income after tax rose only 1.9% to ₱11.01 billion , while net income attributable to parent ...

We’ve been blogging for free. If you enjoy our content, consider supporting us! Disclaimer:  This is for informational purposes and is  not  investment advice. Figures are taken from company disclosures and exchange data; valuation ratios include the author’s calculations based on cited inputs. There are times when corporate ambition deserves applause. And there are times when ambition becomes expensive. Jollibee Foods Corp. now looks uncomfortably close to the second category. To be fair, JFC’s 2025 numbers were not weak on the surface. Revenues rose 13.0% to ₱305.1 billion , systemwide sales climbed 16.6% to ₱455.1 billion , operating income increased 19.3% to ₱20.15 billion , and EBITDA grew 13.8% to ₱41.83 billion . But the most important line for shareholders was far less impressive: net income rose only 1.9% to ₱11.0 billion , while net income attributable to parent increased 5.4% to ₱10.87 billion . That gap between operating progress and bottom-line reward should ...

Jollibee peaked at 328.40 sometime in January of 2019. Before that, JFC acquired 100% of Smashburger an American fast-casual hamburger restaurant chain a for a total of around US$210 Million (around 11 Billion Pesos). JFC was then hunting for acquisitions in its bid to become a top 5 restaurant companies in the world. It appears that JFC felt that its growth in Philippine market where it is the dominant player has started to stall and it has to sustain its growth by acquisition. Smashburger was a loss maker. It was not profitable when JFC acquired the American hamburger chain. The losses of Smashburger were immediately felt in the results of JFC. The consolidation of the losses of Smashburger to the financial statements of JFC marked the start of the decline of JFC from its peak. The market was sending a message that JFC had it wrong. The message was like – acquiring a loss maker is not the way to grow. Then in September 2019, JFC acquired another loss maker Coffee Bean ...