Jollibee Foods Corp., the biggest fast-food chain, said it remains open to acquisitions after finalizing the $350-million purchase of US-based cafe chain Coffee Bean & Tea Leaf.
Jollibee chairman Tony Tan Caktiong said in a recent interview the acquisitions would depend on the timing as well as valuations, and how it would fit with the overall business plan.
“Acquisition sometimes is not about whether you like it or not, but depends on timing and availability. We are still open minded on acquisitions,” said Tan Caktiong.
“Is valuation correct? Will this concept fit? All of these will be considered,” he added.
Tan Caktiong said the company remained open in acquiring brands in China because of huge opportunities in that country.
Before acquiring CBTL, Jollibee in the recent years acquired several global brands in bid to among the world’s five largest food operators.
Among its recent acquisitions were Colorado-based Smashburger and Tortas Frontera, Mexican fast-casual chain based in Chicago.
It has also acquired exclusive rights to develop Dunkin’ Donuts in several territories in China and the Asia Pacific master franchise holder of Michelin star Tim Ho Wan.
Tan Caktiong has said Jollibee is considering bringing in strategic investors to help turn around CBTL.
He said a few long term pension funds had expressed interest in teaming up with Jollibee in CBTL.
“We are still evaluating what we will do,” Tan Caktiong said. “Do we get a strategic partner or not? We will know around the closing.”
Meanwhile, Tan Caktiong expects Jollibee to register better financial second-half results than in the first half of the year.
“Same store stares are improving. If you compare it to last year in terms of net income. So this second half (is) slightly better than first half of the year. But if you compare it to last year, it is not as strong,” he said.
Jollibee saw its net income in the second quarter of the year decline by 50.2 percent to P1.12 billion from P2.25 billion year-on-year, due to extraordinary manufacturing expenses, lower sales of Red Ribbon and losses from Smashburger in the United States.
System wide sales, a measure of sales to consumers both from company-owned and franchised stores rose 10.2 percent to P59.42 billion.
Same store sales growth in the Philippines improved 4.2 percent in the second quarter from 1.4 percent in the first quarter, excluding the Red Ribbon business.
Net income in the first six months of 2019 dropped 34.4 percent to P2.65 billion from P4.05 billion on year, while revenues rose 13.8 percent to P113.7 billion.