- Jollibee Foods Corp will spin off its international business into JFC International and target a U.S. listing by late 2027, subject to market and regulatory approvals.
- The Philippine business will remain listed in Manila, and existing shareholders are expected to receive proportional shares in the new international entity.
- Overseas operations span 10,000+ stores in 33 countries across brands including Smashburger, Tim Ho Wan, and Coffee Bean & Tea Leaf, contributing about 43% of revenue in the first nine months of 2025.
- JFC shares jumped about 14.5% on the announcement as investors welcomed a clearer split between the steadier domestic unit and mixed-performing international assets.
Read More
Jollibee’s proposed spin-off and U.S. IPO of its international operations marks a reshaping of its corporate architecture. By separating the higher-growth, more volatile overseas business from its more stable domestic operations, the company seeks to unlock valuation gaps and sharpen its strategic focus. Analysts noted that existing shareholders will receive shares in the new entity per their current holdings, subject to tax and regulatory constraints; this implies minimal dilution, but potential complexity in ownership and reporting lines.
Financially, the international business has become material: it generated about 43% of group revenues in the first nine months of 2025. JFC’s total store count stands at over 10,300, with approximately 6,800 located overseas). However, profitability has varied sharply among brands and geographies: Smashburger, for example, recorded large losses, while brands like Tim Ho Wan and operations in China have posted steep declines in same-store sales. Thus, isolating these operations may allow investors to better assess margins, management performance, and capital allocation.
Strategically, this move aligns with Jollibee’s ambition to be among the top global foodservice players. It reflects investor pressure to clarify its growth levers, especially in markets where it competes with McDonald’s, KFC, and Yum Brands. By adopting a capital-light model for the international arm, JFC signals caution: balancing growth and risk. Still, risks remain from operational execution, brand fatigue, margin pressure due to commodity costs, and geopolitical or regulatory concerns in international jurisdictions.
Open questions include: how JFC will structure the international entity (e.g., debt allocation, governance), what tax implications shareholders will face, whether the international arm will maintain unified branding or allow greater local autonomy, and how scale and operational complexity will be managed given mixed performance across brands and geographies.
Supporting Notes
- JFC plans to spin off its international business and list it on a U.S. exchange by late 2027, pending market conditions, due diligence, and regulatory approvals.
- The Philippine operations will remain listed on the local bourse, keeping the domestic business under the existing JFC structure.
- Post-announcement, JFC shares rose 14.5%, its biggest single-day increase in over five years, underscoring strong investor reaction.
- Existing shareholders will receive shares in the new international company proportional to their current holdings, subject to legal, tax, and regulatory constraints.
- International operations comprise over 10,000 stores across 33 countries, including brands such as Smashburger, Tim Ho Wan, and Coffee Bean & Tea Leaf; these overseas operations contributed roughly 43% of revenue in first nine months of 2025.
- Some international brands have underperformed; examples: Smashburger incurred a ₱374 million EBITDA loss in Q1 2025; Tim Ho Wan’s China operations saw same-store sales drop by ~23–26%.