Jollibee (MV $4.34Bn): Philippines’ #1 Foodservice Company Hitting Tipping Point in Well-Executed International Expansion
Jollibee Foods Corp (PSE: JFC) is Philippines’ #1 food company with multiple brand format across several categories to capture a bigger chunk of the dining-out market where >12% of the Philippine population dining at one of their outlets every week, led by flagship fast-food brand Jollibee which dominates the QSR market with a share of 57% which is 3x the value share of its next largest peer. JFC’s other domestic brands are leaders in their own categories: Chowking (Chinese, market share 91%), Greenwich (pizza, market share 35%), Red Ribbon (cakes/ pastries, market share 44%), Mang Inasal (grilled chicken, market share 92%), and Burger King. Its international brands include Yonghe King (noodle, rice, dimsum), San Pin Wang (noodles), Hong Zhuang Yuan (congee), and Dunkin’ Donut 60:40 JV in China; SuperFoods 50:50 JV in Vietnam (Pho24, Highlands Coffee, Hard Rock Cafe). Out of the ~3,000 stores, 52% are company-owned and 48% are franchised. Founded by Tony Tan Caktiong and his wife Grace Ang Caktiong in 1975 and incorporated in 1978, JFC is 70% controlled by the Caktiong family.
1) What Makes It a Wide-Moat Business?
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About The Author: Koon Boon Kee
Koon Boon is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets.
Starting his career at a boutique hedge fund in Singapore and later, at Korea’s largest mutual fund company, Koon Boon started to make headway into the investment arena. In his early successes, Koon Boon was part of the core investment decision committee which achieved 700% in returns (net of fees), in its flagship Asian fund.
A prolific writer and thought leader, Koon Boon has contributed hundreds of articles to Bamboo Innovator and BeyondProxy, an acclaimed series of subscription-based, research-intensive publications for serious investors; and is Managing Editor of the Moat Report Asia, a research service focused exclusively on highlighting undervalued wide-moat businesses in Asia. He had also presented in top banking and finance conferences in Sydney, Cape Town, HK and Beijing, as well as in the Emerging Value Summit and Wide Moat Investing Summit. His work has been featured in local and international media such as, TEDxWallStreet, Investopia, BeyondProxy, Greatinvestors.tv, Jakarta Post, Straits Times Singapore, TODAY Singapore, Business Times Singapore, as well as a publication in the BoğaziçiJournal.
With the wide occurrences of financial fraud committed by listed firms in China during 2015, Koon Boon went to further his studies, from which he saw a gap in the curriculum for accounting fraud. He went on to pioneer the first-of-its-kind course on Accounting Fraud in Asia, which is now an official course in the SMU curriculum.
Today Koon Boon is the Chief Investment Officer at 8I Holdings Limited, where he is responsible for the sustainable growth and outperformance of listed Asian equities investments in the Hidden Champions Fund.
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