Jollibee earmarks U$347m in capex after going back to profitability

The company, which has 17 brands in 34 countries, plans to add 500 new stores this year.

After finding its way back to profitability in 2021, Jollibee Foods Corporation has earmarked 17.8 billion pesos (US$347 million) for capital spending, the bulk of which will be used for new stores.

"We look forward to continuing strong recovery of the business in 2022 particularly if the restrictions in the Philippines are fully lifted, coupled with increased consumer spending during this election year," JFC chief executive officer Ernesto Tanmantiong said in a disclosure to the local stock exchange.

Jollibee posted a net income of 3.2 billion pesos in the three months to December 2021, up 59.6% year-on-year and exceeding by 3.7% the level in the fourth quarter of 2019. However, full-year profit and system-wide sales remain behind pre-pandemic levels.

Nine billion pesos was allotted to open new stores this year, up 50% from what it spent in 2021. Tanmantiong said Jollibee is prepared to make such investments “if the economies fully re-open and sales growth remains strong.”

"We see very strong expansion in different parts of our business, particularly those in North America, China, Southeast Asia and Europe while we expect the Philippines to sustain its healthy profitable growth," the executive added.

The Philippine fast food giant, which has 17 brands in 34 countries, aims to add 500 new stores this year after opening 398 in 2021.