The news is true! JFC is getting big and it’s making its first appearance in Europe region, including Rome and Madrid. In fact, the debut is part of its global expansion program that is happening throughout this year. The program intends for JFC to open 50 stores across the European region in a span of 5 years and including the cities in the United Kingdom. Although you might think that JFC is continuously going down because of what’s happening on the trading floor, there are actually much better plans when it comes to expansion. Knowing this, JFC might still be one of the best stocks for long-term investing.
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Aside from Europe, JFC’s market in Asia is getting big as well. In China, the firm plans to open 1,000 stores within 5 to 7 years. The company is also considering acquiring more brands that will suit the taste of the local market. Meanwhile, in Vietnam, JFC is still thinking about getting the business in the stock market since there is no urgency to sell equity. The business is doing good and there is a strong performance in the country, which is why selling equity to raise capital is not that necessary. It seems like the acquisition of Highlands Coffee and Pho24 is a success for the company considering that the Vietnamese market is one of its key assets.
Knowing the plans of JFC to expand, the percentage of its foreign business globally is expected to increase from 20% to 30%. Apart from Jollibee stores and others of its known brands, 100 new Highlands Coffee outlets will be opened annually in the next five years. The company also thinks to bring in Pho24, a Vietnamese noodle store, outside the Vietnamese market. As soon as the 20 to 30% becomes a success, the firm will eventually attain the 50-50% split of revenue between the Philippine and foreign market. JFC sees the foreign market growing faster than the Philippines market. This might be one of the reasons why the 50-50% split is achievable within the next years.
About P17.2 billion fund is set aside for JFC’s capital expenditure for this year. This will be used to finance the launching and opening of the planned 500 stores across the world and 90 stores to be renovated. The company also disclosed that after opening branches in Milan and London, the next market will be Rome and Madrid before the year ends. JFC will also bring Tim Ho Wan in Shanghai and its first Panda Express franchise here in the Philippines. And in terms of turning around Smashburger, the company said that it could take a year or two before a new acquisition can be stabilized and turned around.