HOME-GROWN fast-food chain Jollibee Foods Corp. (JFC) said the company’s strong growth supports the planned spin-off and proposed listing of its international business on a US stock exchange late next year.
The planned split of the domestic and international operations would simplify the group's structure, improve transparency, and unlock value for the company’s investors, JFC Global Chief Financial Officer Richard Shin told a media roundtable on Wednesday.
The transaction “aims to unlock value through structural clarity, allowing investors to assess each business on a stand-alone basis with improved transparency,” Shin added.
He cited “many reasons to believe that international is ready to be a standalone and the potential is there to continue because of the growth rate.”
Reports note that JFC’s shares have risen nearly 16 percent year to date, for a market capitalization of about $3.9 billion.
In addition, Shin said the international business under Jollibee Foods Corporation International (JFCI) accounted for 6,800 of Jollibee's 10,300 stores by the end of last year's third quarter.
In the past 15 quarters, he said the company’s store network had logged a compound annual growth of 26.7 percent, exceeding the group's overall expansion of 15.1 percent.
Announced Jan. 6, the planned split, JFC said, would sharpen the strategic focus for each company and enable each business to pursue its strategic ambitions.
Under the plan, JFCI would cover all operations and businesses outside the Philippines, while JFC would cover all domestic operations and retain its Philippine Stock Exchange (PSE) listing.
Shin said they were looking at late 2027 for the spinoff because of the scale and complexity of carving out the international unit while ensuring shareholder protection and business continuity.
He clarified that the group has no plans to delist, privatize or relocate its Philippine operations, describing the domestic business as a “vibrant, robust” growth platform with significant expansion potential.
“The Philippines business remains a very attractive investment,” Shin said, adding that for JFC, its home market is far from saturation.
He added that the group chose the US as the intended listing venue because of its deep investor base and experience in valuing global consumer and restaurant companies.
Furthermore, the largest food and beverage companies by market capitalization are listed in the US and US capital markets offer greater liquidity, broader analyst coverage, and stronger valuation discovery for high-growth consumer businesses.
However, Shin said that a US listing did not guarantee higher valuations, stressing that execution and performance would remain critical to the business.
The planned split, he continued, is expected to support more disciplined capital allocation by each business, clearer performance metrics and improved transparency for investors.
While preparations for the spinoff move forward, Shin said management would remain focused on business execution across all brands and markets this year.
Shin also assured that the company would preserve the economic interests of existing shareholders upon implementation of the planned split.
He said shareholders are expected to receive shares in the new international company on a proportional basis, subject to regulatory, legal and tax requirements, and would hold interests in two separately listed entities.
The planned move is not expected to disrupt store operations, customers or franchisees, with all brands continuing to operate under existing agreements and no immediate employee or management structure changes seen.
The late-2027 execution target reflects the need for careful planning and risk management, but Shin assured that any material developments would be disclosed through appropriate regulatory channels.
JFC shares on Wednesday rose by P1.40, or 0.68 percent, to close at P208.40 each.