The following is a summary of the Jollibee Foods Corporation (JBFCF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Jollibee reported system-wide sales of PHP94.2 billion in Q4, which is 9.6% higher than the previous year.
The company made record-setting full-year system-wide sales of PHP345.3 billion, up by 16.3%.
Revenues for the year reached a record high of PHP244 billion, a 15.2% year-on-year growth.
Gross profit for the Q4 hit a record high of PHP13.1 billion, a 16.6% hike from the previous year; the gross profit margin rate stood at 19.7%.
Unfortunately, operating income was down 41% from Q3 due to timing differences in OpEx recognition, but the full year operating income was PHP14.4 billion, a 45% increase from the previous year.
Business Progress:
Jollibee opened 658 new stores during the year, marking a 6.3% network growth.
The Jollibee brand achieved recognition as the second fastest-growing restaurant brand in the world.
Future growth is expected to be driven by international expansion, growth of coffee and tea businesses, franchising efforts in China, and consistent growth and market leadership in the Philippines.
The company aims to triple its net income after tax in five years and plans to accelerate digital transformation to enhance operational efficiency and customer experience.
The company acknowledged issues with its CBTL brand in North America, with plans for adjustment in 2024.
40% of planned store openings in 2024 will be of the coffee and tea segment; international sector and coffee business will account for the rest of the openings.
The company aims to expand Jollibee US franchises, boost profitability in its Smashburger chain and aims to shift from company-owned to franchised stores, targeting about 80% of franchised stores globally by 2025.
A target of 500 stores, mainly franchises, in the U.S. has been set for 2025.
There's a focus on achieving a consistent financial performance with a higher average daily sale (ADS) target and a shift towards a higher gross margin model.
More details: JOLLIBEE FOODS CORP IR
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