Jollibee's Q2 2025 Sales Soar by 19.6% Due to Increase in Number of Stores
In an encouraging development, Jollibee Foods Corporation (JFC), the global fast-food powerhouse, is delivering robust growth despite a softening in the broader US market.
The company's international division, Jollibee international, is making a significant contribution to this performance due to its successful expansion. The strategic acquisition by JFC has also bolstered its operational results this quarter.
China, a key market for JFC, is showing early signs of recovery, indicating a potential turnaround in performance. This optimistic outlook is further reinforced by the company's confidence in its direction and capabilities, as it reaffirms its full-year guidance.
The Coffee and Tea segment, one of the fastest-growing segments within JFC, is witnessing expansion across key geographies. This growth is driving incremental revenue and margin enhancement, with Compose Coffee, a leading brand in the segment, set to surpass 3,000 stores and is expected to deliver a 36% Return on Invested Capital (ROIC) in 2025.
JFC is strategically deploying capital expenditures, focusing on supporting growth in the U.S., Philippines, Jollibee international, and its coffee and tea brands. This disciplined approach to capital allocation is enhancing asset efficiency and ROIC, with 69% of stores now operating under a franchised model.
To improve its financial performance, Smashburger, another brand under JFC, has a defined path supported by operational improvements, product innovations, and the conversion of company-owned stores to franchised stores.
The expansion in operating margin and earnings underscores the effectiveness of JFC's strategy. The company's disciplined execution of cost optimization initiatives and portfolio innovation efforts have stimulated growth and profitability, positioning JFC well for future success.
Ernesto Tanmantiong, the CEO of Jollibee Foods Corporation, expressed optimism about the company's prospects, emphasising the strategic shift towards franchising and disciplined capital allocation as key drivers of asset efficiency and ROIC.
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