The fast-food giant said in a regulatory filing that the Philippine Stock Exchange (PSE) approved its request to remove the foreign ownership limit. This follows a revision to its incorporation papers, eliminating its ability to own, acquire, mortgage, pledge, or encumber real estate.
Big picture
Firms with property holdings follow the 40 percent foreign ownership limit due to constitutional restrictions.
The move comes at a pivotal time in Jollibee’s history as it cements its status as a major global fast-food company, expanding beyond its homegrown roots, where it is the dominant player with restaurants such as Jollibee, Mang Inasal and Chowking.
Its growing international footprint now includes brands like Coffee Bean & Tea Leaf (United States), Tim Ho Wan (Hong Kong), and Compose Coffee (South Korea).
Analyst’s view
Alfred Benjamin R. Garcia, head of research at AP Securities, said this is a significant development for the P280 billion fast-food group.
“In principle, it could be a big deal because I’m sure there are lots of foreign investors clamoring to get in on JFC’s global growth story,” he said in a message to InsiderPH.
“However, it’s unlikely that Tony Tan Caktiong will cede his majority control to make room for a foreign investor,” he added.
Sale and leaseback
AP Securities previously noted how the move also allows Jollibee “to attract more foreign investments, opening up opportunities for additional capital infusion” to support its global growth.
Some of Jollibee’s land assets currently serve as locations for its fast-food outlets, but Garcia said the company can sell and lease back these properties to ensure smooth business operations.
As of end-2023, Jollibee’s land holdings were valued at approximately P153.24 million based on fair market value, he said.
Stock market welcomes the news
Jollibee, which trades under the stock symbol JFC, jumped 8.86 percent to P258 per share at the noontime break on Thursday.
Data from the stock exchange also showed net foreign buying at P32.1 million.
The broader Philippine benchmark index (PSEi) rose 0.81 percent to 6,092.79 on Thursday.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
