Jollibee rides record sales to deliver massive Q3 profit
Jollibee [JFC 233.00 1.9%] [link] delivered a Q3 profit of P2.3 billion, up 70% from its Q3/21 profit of P1.3 billion, driven by P77.7 billion in Q3 system-wide sales (a JFC record). 9M profit was at P7.2 billion, up 168% y/y from P2.7 billion, JFC said that its strong Q3 and 9M performances are due to a variety of factors working together, but the largest being the easing of movement restrictions in the Philippines.
This allowed PH-based JFC stores to experience a 48.5% same-store sales growth in Q3 y/y, which pulled JFC’s total worldwide same-store sales growth up to 30.9%.
Other factors that contributed to the success were the price increases that JFC imposed in Q4/21, continued global expansion, new acquisitions (like Milksha), and beneficial forex conversions for income earned overseas.
JFC said that it increased its total worldwide store count by 6% to 6,351 in the first 9M of 2022.
The only concerning statistic came out of China, where JFC same-store sales were down 4.6% y/y due to the reimposition of movement restrictions meant to slow the spread of COVID-19.
MB BOTTOM-LINE
The bee has been busy.
Remember the days when JFC would need to extract the Coffee Bean & Tea Leaf (CBTL) acquisition from its financials? Not anymore.
CBTL, along with Highlands and Milksha, account for 30% of JFC’s store network and 15% of its total system-wide sales.
CBTL was even a stabilizing force through the punishing and confusing lockdowns that we went through that kept earnings from PH-based locations suppressed.
Now, the patience that JFC has been pleading for is paying off.
The thing I’m most curious about, though, is how JFC’s business has changed since COVID.
Did the industry flip to 20% dine-in and 80% dine-out as McDonalds’ and JFC had predicted back in 2020, or are we getting back to something that looks more like the glory days of stuffing as many people as possible into each location?
There was so much talk a couple years ago about how the quick-service industry would need to change to survive the “new normal” (cloud kitchens, 3rd party delivery apps, dine-out dominance), but are these recovery numbers coming from the old way of doing business, the new way, or a blend of the two?
I’d love to see some segmented analysis.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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