{"id":323573,"date":"2023-06-08T00:25:38","date_gmt":"2023-06-07T16:25:38","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=323573"},"modified":"2023-06-08T00:25:40","modified_gmt":"2023-06-07T16:25:40","slug":"stock-in-focus-jollibee-foods-corp-jfc-8-june-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-jollibee-foods-corp-jfc-8-june-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Jollibee Foods Corp. (JFC) – 8 June 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>8 June 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 288.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

As JFC registers strong same-store sales growth (SSSG), continuous global expansion, and China\u2019s recovery, we are maintaining our BUY recommendation on JFC with a fair value Target Price of P288.00 per share<\/strong>.<\/p>\n\n\n\n

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

Jollibee Foods Corporation (JFC) Bottomline is up +332% year-on-year (y\/y) excluding the one-off gains recorded in the previous year to P2.06 billion. Factoring these one-off gains, Net Income (NI) would have declined by -10.65% y\/y. The increase in bottomline is attributed to strong growth in topline performance. Revenues grew +28.5% y\/y to P55.09 billion, with gross profit margin improving 280bps on better costs management.<\/p>\n\n\n\n

Same store sales which only include food sales under operation for at least 15 months were much stronger locally, growing +31.6% y\/y, while the international business grew by +8.8% y\/y. Cumulatively, this brings a total growth of +22.4%. System wide sales grew +31.1% y\/y to P78.64 billion.<\/p>\n\n\n\n

Strong double digit growth follows a poorer 1Q 2022 which saw restrictions under the
Omicron variant surge during that period. At the end of the quarter, JFC operates a total of 3,281 stores in the PH and 3,261 overseas. China looks to be posed for a recovery as signs of improvement are observed for the months of Feb and Mar, following the easing of restrictions beginning in Jan. <\/p>\n\n\n\n

The company would be discontinuing its PHO24 business in the country, turning the focus into top brands such as Jollibee. Provisions were already recognized in the previous quarter but should see a gain in share of holdings for the next quarter.<\/p>\n\n\n\n

Customers are much more comfortable dining out despite news of rising cases. Dine-in sales continue its growth, exceeding pre-pandemic levels, representing 44% of total sales, up 10pps y\/y. JFC would be ramping up on its China expansion, eyeing 150 new stores for the year and focusing on Chinese cuisine for the market. ROIC is much faster in the Chinese market as volume accumulates much quicker. Globally, store opening outlook is at 550-600 for this year, with capex at P17 billion to P19 billion.<\/p>\n\n\n\n

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