Jollibee US spin-off sharpens strategy

Jollibee Foods Corp. (JFC), one of Asia’s largest food service companies, plans to spin off its international business and list it on a United States (US) exchange, a move aimed at unlocking higher valuations and accelerating global expansion.

- By JAMES A. LOYOLA

In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday, Jan. 6, the company said it will distribute shares of the new entity, Jollibee Foods Corp. International (JECI), to existing shareholders through a property dividend.

“The planned spin-off and listing reflects the continued development of JEC’s portfolio and the company’s objective of establishing two independently listed businesses, each with a distinct strategic focus and investment profile,” Jollibee said.

Following the announcement, JFC shares surged the most in recent trading. As of writing, the stock climbed as much as 8.7 percent in Tuesday morning trades to P199.40, snapping a long period of investor unease over the drag from overseas acquisitions on the company’s earnings.

The parent company will remain listed on the PSE and focus exclusively on its Philippine operations, which Jollibee described as a resilient, cash-generative business anchored by market-leading brands and a loyal customer base.

By separating the high-growth international portfolio from the domestic business, Jollibee said it aims to give investors a clearer choice between a stable consumer platform and a global growth vehicle.

“The structure is designed to support each business in pursuing its strategic ambitions while enhancing the clarity of each equity story,” the company said.