JOLLIBEE Foods Corp. (JFC) expects to finalize the S$20.2-million acquisition of Hong Kong-based restaurant Tim Ho Wan by January 2025, according to its chief financial officer (CFO).
“Beginning January, this (Tim Ho Wan) brand and business of 80+ stores will be a subsidiary of JFC, so the ownership change will be January,” JFC CFO Richard Shin said during a recent virtual media briefing.
“What we’re doing from now until January is all the legal matters that need to be done, things like landlord consent, etc.,” he added.
Mr. Shin said that JFC’s return on invested capital is expected to improve following the transaction.
“This brand represents the lead brand in our fourth pillar, Chinese cuisine. What we’ve seen is that Cantonese cuisine, whether it is dim sum, barbecue meat, or wok-fried dishes, which Tim Ho Wan now has all three, the taste profile of this brand will resonate very well across geographies,” Mr. Shin said.
Earlier this month, JFC announced that it would acquire full ownership of Tim Ho Wan after buying the remaining 8% stake held by other investors in Titan Dining LP (Titan Fund) for S$20.2 million or more than P890 million.
The ownership and management of Tim Ho Wan will then be transferred to JFC subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) from Titan Dining LP (Titan Fund).
Prior to the deal, JWPL has held a 92% participating interest in Titan Fund since January 2024.
Mr. Shin said JFC is sticking to its expansion and growth plans in China despite the recent sales decline.
“It’s a challenge. But we’ve always said, until other markets appear, we have three key markets as our priority markets and that’s the Philippines, the US, and China, for very different reasons. We are going to stay in the Chinese-cuisine space,” Mr. Shin said.
“People still need to eat, and when people do eat, they’re making choices that are different in terms of price points. That’s where we’re going to go,” he added.
JFC previously said that third-quarter same-store sales growth in China declined by 12.1% due to continued weak consumer spending.
The fastfood giant has presence in China through the Yonghe King, Hong Zhuang Yuan, and Tim Ho Wan brands. It also has presence in Hong Kong and Macau through the Jollibee brand.
“I’m very confident that China is not one that you just write off because we’re in the Chinese low-value sector,” Mr. Shin said.
For the third quarter, JFC grew its attributable net income by 15.3% to P2.81 billion as revenue rose by 10.1% to P67.73 billion. System-wide sales increased by 13.2% to P98.48 billion.
The company increased its store network by 42.8% to 9,598 as of the end of September, with 3,340 domestic stores and 6,258 international branches.
On Wednesday, JFC shares rose by 2.47% or P6.60 to P274 per share. — Revin Mikhael D. Ochave