MANILA, Philippines – Fastfood giant Jollibee Foods Corporation will earmark P10.4 billion ($220.10 million) in capital expenditures for 2016, primarily to roll out more stores here and abroad, the company told the stock exchange on November 9.
Out of the programmed spending, at least P7.5 billion ($158.73 million) will be set aside for new store investments and existing store renovations. The rest will be alloted mostly for commissary expansion.
Jollibee CEO Ernesto Tanmantiong said that for next year, the group aims to accelerate its store network expansion by opening more stores than in 2015.
The group looks forward to open a total of at least 300 stores in 2015 on a worldwide basis, “a milestone in JFC’s history,” Tanmantiong said.
“To achieve this strong business growth in 2016 and in the years ahead, we will continue to build our organization capability, particularly in store network expansion, supply chain, and information technology,” Tanmantiong added.
Tanmantiong added that the group also plans to enter new countries such as the United Kingdom, Canada, Italy, Malaysia, and Oman.
The group also eyes to to open more stores in countries where it already has a presence like Singapore, Vietnam, and the US, he added.
In October, Jollibee through its wholly owned subsidiary Bee Good! Incorporated, completed the acquisition of 40% stake in US-based burger chain Smashburger for $99.47 million. (READ: Jollibee completes 40% acquisition in US-based Smashburger chain)
Jollibee also reported Monday that its third quarter net income attributable to equity holders of the parent company grew by 7.3% to P1.26 billion ($26.33 million) versus P1.17 billion ($24.76 million) recorded in the same period a year ago.
Third quarter system-wide sales increased by 13.7% to P32.32 billion ($683.94 million) from P28.41 billion ($601.20 million) in 2014, driven by a 6.1% increase in store network and about 7.6% in store sales growth on a worldwide basis.
Sales in the Philippines grew by 13.6% during the quarter versus a year ago, while total sales of foreign businesses grew by 14.2%.
Revenues from China increased by 9.7%; in the US by 19.1%; and Southeast Asia and the Middle East by 25.2%.
Tanmantiong said sales growth accelerated to 13.7% in the third quarter compared with 8.9% in the first half of the year.
For the first 9 months of 2015, net income attributable to equity holders of the parent company increased by 6.9% to P3.8 billion ($80.40 million) from P3.6 billion ($76.16 million) in 2014.
Systemwide sales rose 10.5%to P94.47 billion ($2 billion) from P85.47 billion ($1.81 billion) a year ago. – Rappler.com