{"id":325830,"date":"2023-11-23T14:05:15","date_gmt":"2023-11-23T06:05:15","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325830"},"modified":"2023-11-23T14:05:17","modified_gmt":"2023-11-23T06:05:17","slug":"stock-in-focus-jollibee-foods-corp-jfc-23-nov-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-jollibee-foods-corp-jfc-23-nov-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Jollibee Foods Corp. (JFC) – 23 Nov 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>23 Nov 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 292.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

As JFC registers strong SSGs domestically and continuous global expansion, we are maintaining our BUY recommendation on JFC with a fair value of P292.00 and a potential upside of +28.63%. The stock trades at a premium compared to the industry average, however we believe that JFC still has a lot of room for international expansion, while maintaining growth under existing stores.<\/p>\n\n\n\n

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

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

Jollibee Foods Corporation (JFC) Net Income rose by +13.64% year-on-year (y\/y) to P2.43 billion in 3Q 2023 and declined by -5.75% y\/y to P6.82 billion due to one-time land gains recorded in the previous year. Earnings came in line at 77% of our 2023E forecast.<\/p>\n\n\n\n

System wide sales grew by +11.84% y\/y to P86.96 billion. In terms of revenue, this grew by +10.97% y\/y to P61.53 billion. Same store sales grew by +8.8% y\/y for the quarter, as average check grew by +3.7% y\/y and transaction counts rose by +4.9% y\/y. SSG was strongest locally, growing +13% y\/y in 3Q 2023, and +17.5% Y\/Y in 9M 2023. <\/p>\n\n\n\n

JFC currently has 6,720 stores opened, an increase of +5.8% y\/y as of 9M 2023. 67% of stores are franchised locally, while internationally, 47% of these are franchised. Most of the store expansions came from the opening of CBTL stores, YHK stores in China, and stores under the SuperFoods group.<\/p>\n\n\n\n

Revenues from international stores represent 38.57% of total revenues YTD, a decrease of 81bps y\/y. This puts the company further away from its target contribution goal of reaching a 50\/50 revenue split. 4Q 2023 is expected to maintain robust growth amid additional holiday spendings and wage hikes. Management maintains their guidance for 2023.<\/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>