Jollibee Foods' US Listing Strategy for International Business Impact Analysis

Based on the data and analysis I have collected, I will comprehensively analyze the strategic impact of Jollibee Foods listing its international business in the US below.

• Market Capitalization
  : US$3.47 billion [0]
• Current Stock Price
  : $3.10 (down 31.11% for full year 2025) [0]
• Valuation Metrics
  :
  • P/E Ratio: 27.35x [0]
  • P/B Ratio:152.29x [0]
  • EV/OCF:12.23x [0]

• Profitability
  :
  • ROE:13.40% [0]
  • Net Profit Margin:2.52% [0]
  • Operating Margin:6.55% [0]
• Q1 2025 Results
  : Revenue increased by14.6% to70.2 billion Philippine pesos (US$1.2 billion), system-wide sales grew by18.9% [1]
• Financial Health
  :
  • Current Ratio:0.96 (slightly below 1) [0]
  • Accounting Attitude: Conservative [0]
  • Debt Risk: High Risk [0]

Jollibee has a diversified brand portfolio:

• Fully-owned Brands
  : Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Yonghe King, Hong Zhuang Yuan, Smashburger, Tim Ho Wan
• Franchised Brands
  : Burger King, Panda Express, Yoshinoya, etc.
• Partially-owned
  : The Coffee Bean and Tea Leaf (80%), Compose Coffee (70%), Highlands Coffee (60%), etc. [1]

:

• Conglomerate discount refers to the market value of a diversified conglomerate being lower than the sum of the individual valuations of its business segments [2]
• Investors often apply a valuation discount to conglomerates with complex operations and low transparency

:

• Current Situation
  : As a Philippine local enterprise, Jollibee faces dual pressures of emerging market discount and conglomerate discount
• Expected After Spin-off
  : Listing the international business independently allows investors to evaluate its value more clearly, thereby reducing the discount

:

• Higher liquidity
• More mature investor base
• Valuation premium for growth-oriented businesses

:

• Spun off from Yum! Brands and listed in 2016
• Gained independent valuation and higher P/E ratio and market capitalization recognition after spin-off [3]
• As an independent entity, Yum China can focus more on its China market development strategy

:

• The growth potential of international business (especially North American market) is higher than that of the Philippine local market
• After independent listing, US restaurant chain valuation multiples (usually higher than emerging market enterprises) can be applied
• Expected valuation multiple may rise from the current 27x P/E to the range of30-35x

:

• Accelerate international market expansion
• Acquire new brands and enter new markets
• Digital transformation and technology investment
• Repay high-cost debt (current debt risk rating is high) [0]

:

• US capital market has larger scale and stronger financing capacity
• Can raise funds in USD to reduce exchange rate risk
• Attract international institutional investors and optimize shareholder structure

:

• Stricter financial reporting standards (SEC requirements)
• Higher information disclosure transparency
• Strengthened corporate governance structure

:

• Reduce information asymmetry and enhance investor confidence
• Attract more long-term institutional investors
• Lower equity financing costs

:

1. Consolidate Domestic Market
   : Establish a strong brand and market leadership position in the Philippines
2. Selective Expansion
   : Enter overseas markets through acquisitions and organic growth
3. Diversify Brand Portfolio
   : Build a multi-brand matrix covering different segments
4. Capital Operations
   : Unlock value through spin-off listing to finance expansion

:

• Brand Localization
  : Jollibee adopts localization strategies in different markets
• Combine Acquisitions and Organic Growth
  : Quickly enter markets by acquiring local brands
• Supply Chain Capability
  : Internationalization requires strong global supply chain support

:

• Valuation Arbitrage
  : Leverage valuation differences across markets
• Diversified Financing Channels
  : Reduce reliance on a single market
• Currency Risk Hedging
  : Balance exchange rate risk through multi-currency financing

:

• Choose the right listing timing (when market sentiment is favorable)
• Ensure the business has independent profitability
• Build an international standard financial reporting system

:

• Owns9 fully-owned brands and multiple partially-owned brands [1]
• Covers multiple segments such as fast food, coffee, tea, etc.
• Acquire mature brands to gain local operation experience

:

• Avoid Single Brand Dependency
  : Build a brand portfolio to diversify risks
• Acquire Mature Brands
  : Faster market entry than creating new brands
• Maintain Brand Independence
  : Allow each brand to retain its uniqueness

:

• Jollibee’s current debt risk rating is “High Risk” [0]
• International expansion requires large capital investment
• Need to balance growth and financial stability

:

• Cultural and consumer behavior differences across markets
• Training of localized operation teams
• Global coordination of supply chains

:

• Phased investment to control capital expenditure rhythm
• Reduce financial leverage through listing financing
• Build localized operation teams

• Stock Price
  : May rise due to news stimulus
• Volatility
  : Uncertainty during the spin-off process may lead to stock price fluctuations
• Focus Points
  : Detailed terms of the spin-off plan, timeline, equity structure

• Valuation Upgrade
  : After independent valuation of international business, the overall market capitalization is expected to increase by20-30%
• Accelerated Growth
  : Obtain more funds to speed up international expansion
• Shareholder Returns
  : Reward shareholders through dividends, share repurchases, etc.

:

• Strong management execution (14.6% revenue growth in Q12025) [1]
• High growth potential of international business (strong performance in North American market) [1]
• Multi-brand strategy reduces single market risk

:

• Current stock price is near the 52-week low [0]
• High debt risk [0]
• Execution Risk: Challenges may arise during the spin-off process

Listing Jollibee Foods’ international business in the US is a

with multiple positive implications:

1. Value Unlocking
   : Eliminate conglomerate discount through spin-off and enhance overall valuation
2. Financing Capacity
   : Gain access to larger-scale financing channels to support international expansion
3. Governance Upgrade
   : Improve corporate governance and transparency through US listing standards
4. Strategic Flexibility
   : Create conditions for further capital operations (such as acquisitions, brand divestitures) in the future

:

• Balance Capital Operations and Business Development
  : Not only focus on business operations but also make good use of capital markets
• Global Vision
  : Domestic market has limited ceiling; must go international
• Brand Strategy
  : Multi-brand portfolio is an effective way to diversify risks and cover more markets
• Timing把握
  : Promote capital operations when the business foundation is solid and market environment is favorable

If this initiative is successfully executed, it will not only create significant value for Jollibee shareholders but also provide a reference path for the internationalization of other emerging market consumer brands.

---

[0] Jinling API Data - Jollibee Foods Corporation (JBFCF) Financial Data, Stock Price Data, Company Overview
[1] Yahoo Finance - “Jollibee Group Reports Strong Q12025, Fueled by Global Growth” (https://finance.yahoo.com/news/jollibee-group-reports-strong-q1-063500713.html)
[2] Investopedia - “Understanding Conglomerate Discounts: Causes and Effects” (https://www.investopedia.com/terms/c/conglomeratediscount.asp)
[3] WSJ - “Jollibee Foods Plans to Spin Off International Business with U.S. Listing by 2027” (https://www.wsj.com/business/retail/jollibee-foods-plans-to-spinoff-international-business-with-u-s-listing-by-2027-9634df17)