Philippine fast-food giant Jollibee Foods Corporation has announced plans to spin off its international business and list it on a U.S. stock exchange by the end of 2027, accelerating its global expansion strategy. Following the news, the group's stock price recorded its largest single-day gain in over five years.
From Los Angeles to Ho Chi Minh City, Jollibee is increasingly challenging global fast-food giants like McDonald's and Yum Brands. The group stated on Tuesday that it has hired a team of international and local advisors to handle matters related to the spin-off and U.S. listing. In a filing with the Philippine Stock Exchange, Jollibee indicated that the spun-off "Jollibee International Food Company" will encompass all of the group's operations outside the Philippines, while its domestic business will remain listed on the Philippine Stock Exchange.
After a one-hour trading halt, Jollibee's stock price surged by as much as 11.56% during Tuesday's session, marking its biggest gain since October 2020.
Jollibee stated that splitting the business into two publicly listed companies aims to provide clearer strategic positioning for each entity while enhancing the transparency of their respective equity value stories.
Rachelle Biacora, an analyst at COL Financial Group in the Philippines, noted in a research report that the spin-off would allow investors to value the two business segments independently. The domestic Philippine business offers stable revenue and strong cash flow, whereas the international business, while having greater growth potential, also carries higher volatility. However, she added that the market capitalization of the domestic business might decline post-spin-off, potentially affecting its weighting in certain stock indices.
Jollibee indicated that at the time of the listing, the number of shares shareholders receive in the international business will correspond to their holdings in the group at that time.
The food giant owns multiple brands, including its iconic Jollibee chain, renowned for its sweet-style spaghetti and crispy fried chicken.
Data compiled by Bloomberg shows that, in a push to enhance its international profile, Jollibee has completed 27 cross-border deals since 2000, with a total value of approximately $1.1 billion. These acquisitions include the U.S. brands Smashburger and The Coffee Bean & Tea Leaf, which have faced profitability challenges, as well as the recent purchase of the South Korean coffee brand Compose Coffee.
As of September this year, Jollibee Group's total global store count reached 10,304, with 6,859 of those located overseas across more than 30 countries and regions, including China, Canada, and Vietnam. From January to September this year, the group's total revenue reached 224.2 billion Philippine pesos (approximately $38 billion), with international operations contributing about 43% of that revenue.
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