{"id":327058,"date":"2024-03-07T01:40:20","date_gmt":"2024-03-06T17:40:20","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327058"},"modified":"2024-03-07T01:40:22","modified_gmt":"2024-03-06T17:40:22","slug":"stock-in-focus-jollibee-foods-corp-jfc-7-march-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-jollibee-foods-corp-jfc-7-march-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Jollibee Foods Corp. (JFC) – 7 March 2024 by AP Securities"},"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>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>7 March 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 321.24<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Despite the headwinds explained below, we nevertheless expect continued macroeconomic improvement in majority of JFC\u2019s geo-exposures. All in all, our expectations of double-digit revenue growth for 2023-2025 will likely trickle down to the company\u2019s bottomline, thereby pushing our projected EPS growth upward to a CAGR of 17.8% during this same time period. <\/p>\n\n\n\n

As we couple this with the fact that the company\u2019s current PEG of 0.89x is considerably lower than the 1.10x of median comps, JFC\u2019s undervaluation relative to its growth prospects is all the more highlighted. We therefore reiterate our BUY rating for JFC with a target price of P321.24.<\/p>\n\n\n\n

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

2nd fastest-growing restaurant in the world<\/h3>\n\n\n\n

JFC was recently hailed as the second-fastest growing restaurant brand in the world by Brand Finance, with its brand value up 51% to $2.3-Billion. This is a result of their continued global expansion as they aim to reach a 50-50 PH-International revenue split by 2028. The company is looking at several key markets, namely; US, Europe, Middle East, Asia, and Australia as areas for their aggressive growth plans. Alongside this, management also aims to maintain market leadership in the Philippines.<\/p>\n\n\n\n

Further growth for some segments<\/h3>\n\n\n\n

We projected majority of the growth for JFC to come from the Philippines, CBTL, Milksha, and Superfoods. We believe growth from the Philippines and Vietnam would come from increased consumer spending on the back of high GDP growth rates alongside lowering inflation. On the other hand, we see growth from CBTL and Milksha as they are currently in their high growth phase.<\/p>\n\n\n\n

Two countries may drag growth<\/h3>\n\n\n\n

On the other side of the spectrum however, we project that China and North America may weigh down on JFC\u2019s growth. Unstable economic conditions alongside anemic GDP performance weigh down on the former, while potentially slower growth conditions (less than 2% GDP based on Statista forecasts) for 2024-2025 cloud our outlook on the latter. As such, we see mild revenue progression in the next 2 years for both segments at respective CAGRs of 5% and 1%.<\/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>