Sales Up, Net Income Down for This Fast Food Company
If the factors that caused the fall in net income are disregarded, the company’s earnings would have gone up by 34.6%. Here’s what we know about it.
Although the Jollibee Foods Corporation (JFC) experienced a 16.9% jump in sales for the second quarter of 2023, the company has disclosed that its net income fell by 16.6%. Furthermore, the low net income for the quarter has been attributed to the “absence of one-time gains from land conveyance and sale of land properties from 2022,” according to a report.
And yes, net income would have gone up by 34.6% otherwise.
According to Jollibee Chief Financial Officer Richard Shin, the company will continue to work and improve these numbers. The company plans to do so by making operations more efficient, as well as growing its international business at a faster rate.
Jollibee’s Increase in Sales
According to the data disclosed by the fast food giant, sales from Philippine stores went up by 14.5%. Its China businesses, on the other hand, grew by a whopping 76.9%. This is considered its highest year-on-year incremental sales, which is believed to be driven by consumption recovery.
As for international stores, Jollibee’s sales went up by 20.9%. Last and certainly not least, its coffee and tea business—which includes Coffee Bean and Tea Leaf—also experienced growth at 11%.
Accelerating Jollibee’s Global Expansion
As previously mentioned, Jollibee has plans for a rapidly growing business, especially its international one. As a matter of fact, it has been reported that the company is planning to invest up to PHP 19 billion in order to open around 600 stores this year alone.
Once it is achieved, it will be a huge achievement for a local company making an effort to expand globally. This will mean Jollibee will have over 7,000 locations in the Philippines and all over the world. This will greatly benefit the economy, as opening hundreds of stores will likewise generate multiple employment opportunities for people in need of jobs.