- Jollibee Foods Corp plans to spin off its international business into Jollibee Foods Corp International and target a U.S. exchange listing by late 2027.
- The remaining Philippine business would stay in the current PSE-listed company, positioned for steadier earnings and local expansion.
- Existing shareholders would receive JFCI shares pro rata, creating two separately tradable stocks.
- The move aims to unlock valuation by separating a higher-growth, higher-risk global portfolio from the more stable domestic unit.
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The announced spin‐off reflects a strategic bifurcation between Jollibee’s stable, mature domestic operations and its fast‐growing, but riskier, international portfolio. From an investment banking standpoint, this move aims to unlock valuation by enabling the market to more precisely price two business profiles rather than a blended one. The domestic business is likely to be viewed favorably for its cash generation, brand dominance, and lower risk profile; the international arm has upside tied to global expansion but will face heightened competitive, regulatory, currency, and execution risks.
Execution risks are nontrivial. Completing a U.S. listing involves regulatory clearances both overseas (Philippines PSE approval, potential capital gains tax implications), U.S. securities regulations, due diligence, and possibly restructuring of assets or liabilities. Additionally, market conditions will play a large role—late 2027 may or may not align with favorable equity markets, interest rate environments, or geopolitical stability. As such, the current disclosures are preliminary and subject to change.
The scale of the international footprint gives substance to the growth story. As of September 2025, Jollibee had ~10,304 stores globally, with 6,859 located outside the Philippines. Its revenue in the first nine months of 2025 was roughly ₱224.2 billion (about US$3.79 billion), of which approximately 43% came from international operations. These metrics suggest that the international arm could represent a business larger in revenue or growth potential than the domestic one in time, though profitability margins and capital expenditure requirements may diverge significantly.
From a valuation perspective, separating the businesses may help reduce conglomerate discount. U.S. investors tend to apply higher multiples to growth‐oriented, global consumer brands than to domestic‐only ones in emerging markets. But that also raises expectations for revenue growth, margins, transparency, and governance in the international business. The domestic entity might trade at lower multiples but offer dividend potential and income stability.
Strategic implications for competitors, franchisors, and suppliers include increased pressure to scale internationally or specialize regionally. JFC might attract new capital targeted explicitly at global expansion or domestic resilience. Moreover, the spin‐off could serve as a precedent for other Philippine or Southeast Asian firms with international dispersion to consider U.S. listings or dual‐listed structures.
Open questions remain: What will be the legal structure (ADR, direct listing, dual listing)? What asset transfers, liabilities, or share‐class changes will be required? What will the margin profiles and capital expenditure requirements be for the international arm? Will the domestic unit pay dividends, or be used to subsidize international expansion? And finally, how will investors’ tax exposure be shaped by the spin‐off and U.S. listing across jurisdictions?
Supporting Notes
- JFC announced the intention to spin off its international business, formed as Jollibee Foods Corporation International (JFCI), with listing on a U.S. exchange targeted for late 2027.[0news12]
- The domestic Philippine operations will remain under the existing Jollibee Foods Corp entity, retaining its PSE listing, focusing on local growth and stable earnings.
- Shareholders will receive shares in JFCI proportional to their current holdings in JFC; receiving and disposing shares are subject to applicable taxes, legal, and regulatory requirements.
- International segment comprises ~6,859 stores of 10,304 total as of September 2025; this international footprint spans 33 countries and includes brands such as Smashburger, Tim Ho Wan, Coffee Bean & Tea Leaf.
- For the first nine months of 2025, JFC’s revenue was ₱224.2 billion (≈US$3.79 billion), up ~14% year‐over‐year; net income rose ~2% to ~₱146.3 million.
- The international unit will use a capital‐light model to support expansion; current work has begun on structure, legal transfers, and internal advisories.
- The announcement triggered a ~14.5% one‐day surge in Jollibee’s share price—its largest in over five years. [0news12]
- The plan is preliminary; all details (timing, terms, structure) are subject to change given market conditions, due diligence, and regulatory approvals.[0news12]