Jollibee Food Corporation (JFC), the popular food giant, is planning to open 5 more stores in the United States area in the next five years following the launching of its first branch in Guam. The first store located in Guam was opened last April and it showed a significant increase in customer’s demand. Now that JFC is targeting a larger international market, do you think this could help the firm bounce back? Will this expansion plan attract more investors to buy its stocks? Will there be a continuous increase in consumer demands to help the firm improve its earnings?
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The firm said that Guam will make a great market for them as it is becoming a good business center and a place where diversity and taste are a big thing. The company looks forward to the positive things that may happen over the next years as they plan to build more stores in a span of 5 years to address the growing demand of the consumers there. As a matter of fact, the first store of JFC in Guam can accommodate 205 people, located across Micronesia Mall in Dededo. The location is said to be one of the most populous villages in the island. And apart from serving a large consumer population, JFC is looking forward to contributing to the current economy of the island through employment. The staff of the firm’s branch is purely locals and permanent residents of Guam.
The first branch in Guam serves as the 38th store of JFC operating in the territories of the United States which includes those that are in Hawaii, California, Florida, Texas, and New York. The company is currently targeting to have 150 stores in American states for the next years and 100 branches in Canada. 50 stores are expected to be built in Europe and 25 branches will be situated in the United Kingdom. The international branches of Jollibee are basically operated to purse Filipinos who are working overseas. Alongside with it, the company successfully attracted and continuously enticing local customers specifically in the areas of Hong Kong, Singapore, Vietnam, Brunei, and Manhattan. Overall, the company will open 500 more stores this year and will spread out equally in the markets here in the Philippines and abroad.
As of the end of the first quarter, JFC has a store count of 4,543 branches of different brands such as Jollibee, Greenwich, Chowking, Mang Inasal, Red Ribbon, Pho24, and Burger King. This year, the company is set to spend P17.2 billion capital expenditure in order to make this aggressive expansion happen. The company will also renovate its old stores. During the first quarter of the year, the net income attributable to the parent of JFC went down by 14.7% to P1.54 billion despite the revenue growth of 14.1% to P40.35 billion. The consolidation of the latest acquisition of Smashburger seemed to drag down the firm.