{"id":322503,"date":"2023-03-30T02:21:22","date_gmt":"2023-03-29T18:21:22","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322503"},"modified":"2023-03-30T02:21:24","modified_gmt":"2023-03-29T18:21:24","slug":"stock-in-focus-jollibee-foods-corp-jfc-30-mar-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-jollibee-foods-corp-jfc-30-mar-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Jollibee Foods Corp. (JFC) – 30 Mar 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>JFC<\/td><\/tr>
Company Name<\/strong><\/td>Jollibee Foods Corp. <\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>30 Mar 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 282.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

With JFC ramping up on international expansion, and with China poised for
recovery after emerging from its zero-Covid policy, we are upgrading our rating on JFC to BUY with a fair value Target Price of P282.00 per share<\/strong>.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Analysis and Opinion<\/h2>\n\n\n\n

Jollibee Foods Corporation (JFC)’s earnings are down in the 4th quarter (4Q) of 2022 by -99% year-in-year (y\/y) to P30.78 million as it records one-off expenses for the period. <\/p>\n\n\n\n

The decline in bottom line is attributed to the provisions to lessen non-priority brands coupled with higher expenses. Non-priority brands include the shutdown of Pho24\u2019s operations in the country. This amounted to expenses worth almost P500 million. Also incurred in 4Q 2022 involve increased advertising and promotion spending. Higher expenses on A&P were due to JFC catching up on spending that was put on a halt for 1H 2022 as the country was going through COVID restrictions.<\/p>\n\n\n\n

For 2022, JFC opened 482 new stores overseas, a 17.77% y\/y increase, and 65 new stores in the Philippines. This brings the total store count to 3,195 and 3,285 for overseas and domestic respectively. It is expected that overseas stores would overtake the number of stores JFC operates in the Philippines before the end of 2023.<\/p>\n\n\n\n

JFC is expected to ramp up on expansion, with target store growth at 5%. 550-600 new stores are expected, the majority of which would be situated in overseas markets. This would bring JFC much closer to its goal of 50-50 international-domestic revenue market share.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Check how many brokers recommend this stock<\/h2>\n\n\n\n
\n
All Stock Rankings<\/a><\/blockquote>