Jollibee posts record sales as China business recovers

[MANILA] Top Philippine restaurant operator Jollibee Foods said sales jumped to a record high in the second quarter as its China business recovered and looks set for a turnaround.

System-wide sales, which measures all sales from company-owned and franchised outlets, jumped 19.6 per cent to 114.5 billion pesos (S$2.6 billion) in the quarter ended June from a year ago, Jollibee said in a statement released on Thursday.

The group, which has more than 10,000 stores and cafes across 33 countries, said net income rose 5.6 per cent to 3.2 billion pesos in April-to-June quarter, the highest since the last quarter of 2021. Jollibee shares climbed as much as 1.9 per cent on Thursday.

Despite softness in the US market, the company said sales at its international business grew 32.6 per cent, driven by its acquisition of South Korea’s Compose Coffee. Philippine sales rose 11.3 per cent, fuelled by its flagship Jollibee brand and chicken barbecue chain Mang INasal.

Jollibee, known for its sweet spaghetti and fried chicken dishes, said same-store sales in China grew 3.9 per cent in the quarter from a year earlier after several quarters of decline due to weak consumer spending in the world’s second-largest economy.

“China is showing signs of recovery, marking a potential turnaround in performance,” Jollibee Group chief financial and risk officer Richard Shin said in the statement.

“Our strategic shift towards franchising, combined with disciplined capital allocation, is enhancing asset efficiency and ROIC,” Shin said, referring to return on invested capital. “Today 69 per cent of our stores operate under a franchised model, reflecting our ongoing transition to a more capital-light structure.” BLOOMBERG