{"id":331981,"date":"2025-03-26T01:43:51","date_gmt":"2025-03-25T17:43:51","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331981"},"modified":"2025-03-26T01:43:55","modified_gmt":"2025-03-25T17:43:55","slug":"stock-in-focus-jollibee-foods-corp-jfc-26-march-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-jollibee-foods-corp-jfc-26-march-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Jollibee Foods Corp. (JFC) – 26 March 2025 by RCBC 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>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>26 March 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 331.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We upgraded our target price (TP) by 5% to Php331.00 as we continue to bank on JFC\u2019s ability to improve operational efficiency, expand the group\u2019s footprint aggressively, as well as its commitment to turnaround the China business and Smashburger. We believe that the continuous expansion of its Coffee & Tea business will contribute further to earnings, with CBTL performing well in 2024. <\/p>\n\n\n\n

Moreover, although JFC\u2019s share price is outperforming the PSEi by around 100bps year-to-date, we believe earnings growth momentum in 2024 will be sustained to 2025 due to the election boost and improving macro-environment, reinforcing our positive view on the stock. We, therefore, reiterate our BUY rating, keeping JFC as our top pick in the consumer sector.<\/p>\n\n\n\n

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

Earnings recap<\/strong><\/p>\n\n\n\n

Jollibee Foods Corp. (JFC) reported a 2024 attributable net income of Php10.3 billion, up 17.7% year-on-year (y\/y), in line with consensus and our estimates. System-wide sales (SWS) grew by 13% y\/y to Php390 billion backed by a 10.1% growth of the PH business while the international business showed a 17.6% jump. Compose coffee contributed 7.9% to the total International SWS growth. Meanwhile, same-store-sales growth (SSSG) was at 5.7% on a volume growth of 5.1% and 0.5% increase in average check. Operating profit expanded by 17.2% to Php16.9 billion with margins improving by 40bps driven by higher gross margins.<\/p>\n\n\n\n

2025 guidance<\/strong><\/p>\n\n\n\n

Jollibee\u2019s growth of its store network is expected to hit 700-800 new stores this year (PH: 200-250 stores; International: 450-500 stores), with CAPEX around the Php18 billion-Php21 billion. Management expects SWS sales growth to be around 8%-12%, backed by a 4%-6% in SSSG, driven by larger contributions from the International business, while keeping the PH segment a champion, with top brands Jollibee, Mang Inasal, and Chowking leading the way.<\/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>