PHILIPPINE CHRISTIAN UNIVERSITY- DASMARINAS, CITY

Executive Summary Report

Jollibee Foods Corporation
(Pasig City, Philippines)

Submitted to:
Dr. Nicky Valdez

Submitted by:
Eltanal, Scott Chester M.
Estabillo, Bea J.
Lago, Franchesca Vaughn
Rofuli, Justhine
Rubio, Lyrhen Kaye N.
Soleto, Angelika Mae

SY 2021-2022
 Executive Summary Research

Jollibee Foods Corporation has grown to become the Philippines' largest

quick-service restaurant franchise. They have over 1,150 stores in the United States

and also have a foothold in Asia. Jollibee began as a single ice cream store with only

two outlets in 1975. The company grew quickly in the following years, becoming the

first fast-food franchise to reach a revenue of one billion pesos in 1989. Jollibee was

also the first fast-food chain in the Philippines to go public on the stock exchange.

They develops, operates, and franchises fast food restaurants under the

Jollibee brand. Food Service, Franchising, and Leasing are the three segments in

which the company operates. The Food Service segment manages quick service

restaurants and produces food products for Jollibee Group-owned and franchised

QSR locations. The Jollibee Group's QSR outlet concepts are franchised through the

Franchising section. The Leasing division primarily leases retail locations to

independent franchisees of the Jollibee Group. Tony Tan Caktiong created Jollibee

Foods in 1975, and the company is based in Pasig City, Philippines.

Jollibee is a Filipino-owned company that emphasizes family values and unity

while also promoting Filipino patriotism. Jollibee's brand values are Customer Focus,

Speed with Excellence, Humility to Listen and Learn, Spirit of Family and Fun, and

Integrity in providing joy to Filipinos.

It serves great-tasting, high-quality, and affordable food products, such as its

superior-tasting Chickenjoy, mouth-watering Yumburger, and deliciously satisfying

Jolly Spaghetti, among other delicious products, with a strict adherence to the

highest standards of food quality, service, and cleanliness.

 COMPETITORS ANALYSIS

Direct Competitors

 Karinderya

A Food stall that currently built with temporary static structure along the

sidewalks of Pasig City, Philippines is one of the factor that will affect the business.

They both offer products and services that basically the same to satisfied the

consumer

Indirect Competitors

 Fast Food Restaurants

Famous Fast food such as Restaurant Brands International Inc, Yum! Brands,

Inc., McDonald's Corporation, Max's Group Inc., Good Times Restaurants Inc.,

Alliance Global Group Inc., FAT Brands Inc. Class A is the competitors in terms of

food business. Fast food restaurants are more have a fast service, attractive to

consumer, and have enough budget for advertising their product. Fast food

restaurants offers a quick services at price but have a limited product or menu unlike

street food carts that have different variety of product and ready to obtained that

could satisfy the same consumer need.

SWOT ANALYSIS

Strengths of Jollibee in 2020:

 Very strong brand name in the Philippines

 In terms of recognition, the company is comparable to a local McDonald's

franchise. It is extremely popular among Filipinos, and brand loyalty is extremely

high. As a result, Jollibee stores always have an advantage over competitors in Asian

countries where there are Filipino ex-pats.

 Delicious fast food items that are also good for you.

The company has succeeded in positioning itself as having a decent blend of

"traditional" fast-food meals and healthy, low-trans-fat home-cooked foods.

 Filipinos are catered to with food that has a local flavor.

It is not only a global fast food restaurant that offers meals in their market.

They provide Filipinos meals produced by Filipinos. They know exactly what people

want in terms of taste and overall experience, and they deliver. This is a very

effective defensive mechanism against overseas brands that might try to expand

their market share. Whatever competitors try, they will never be able to match

Jollibee's status as a local icon.

 Locations that are convenient for you and service that is available 24 hours

a day:

The company strives to make the client experience very easy and hassle-free

with over 1,150 outlets, drive-thrus, online delivery, and 24-hour operation.

 Internal Governance & Family-Oriented Branding:

 Their priority has always been to promote traditional family values through a
similar approach in company structure and management. As a result, Hewitt
Associated awarded them the Best Employer in the Philippines Award, and the Wall
Street Journal ranked them in the Top 20 Employers in Asia.

Weaknesses of Jollibee in 2020:

 Fast-attraction food's is being eroded by the popularity of super-healthy and

clean-eating diets.

Regardless of how "healthy" fast-food chains try to make their goods, an

increasing number of individuals are choosing to quit eating them. Because the

public has only connected fast food with businesses like Jollibee, this is an inherent

weakness for them.

 Due to Filippino-based tastes and branding, there are just a few stores

outside of the Philippines.

Despite the fact that they have definitely dominated their domestic market,

they have yet to conquer the worldwide market. The rest of the worldwide fast-food

brands would be preferred by non-Filipino consumers.

 Product options aren't updated very frequently.

Consumers may like traditional flavors, but every business must aim to offer

something fresh and intriguing on a regular basis.

 In 2020, the pandemic cost $336 million and forced the closure of over 255

businesses around the world.

Opportunities for Jollibee in 2020:

  Purchasing or starting enterprises that promote "clean eating" and a healthy

lifestyle.

This is the only way Jollibee can satisfy a wide range of customers. Without

attempting to repurpose their existing brand, having a dedicated offering for each

one.

 Continue to develop and offer new items.

Jollibee needs to keep experimenting with flavors in order to provide their

devoted customers even more reasons to place an order.

 Further international market expansion is planned.

They may buy well-known brands that follow the same principles that have

made Jollibee so successful in the Philippines. As a result, they are broadening their

company portfolio and are no longer reliant on a single market.

2020 Jollibee Threats:

 The fast-food industry's ever-increasing competitiveness.

The industry's behemoths, such as McDonald's, KFC, and Burger King, are

constantly on the lookout for new opportunities. Jollibee will have a hard time keeping

up if they decide to expand deeper into the Asian market.

 Regulations.

Many goods, substances, or methods of food processing may become

outlawed as the world transitions to a healthier way of life. This necessitates quick

action in order to keep up with the continuously changing legislation. That kind of
activity and preparation always takes a lot of time, energy, and resources that could

have been used for something else.

CONCLUSION

The group conclude that Jollibee is a powerful brand that will be able to

sustain its dominance in the Philippines if it continues to adapt and evolve. Despite

the rivalry, Jollibee's selling concept is distinct enough to set them separate from the

rest of the country.

They will undoubtedly succeed if they can capitalize on their primary

strengths while addressing their deficiencies. The corporation will undergo a

substantial cost-cutting exercise, according to CEO Ernesto Tanmantiong.

Specifically, according to CFO Ysmael Baysa, 255 stores would close and 95 will

transition from corporate to franchise ownership.

RECOMMENDATION

The group recommends that upon expanding to foreign countries, they

must first know and understand cultural differences and develop appropriate. For the

planned expansion in India and China, Jollibee Food Corporation should take baby

steps such as acquiring companies that suits to the country’s consumer preferences

and slowly introduce product lines than taking aggressive steps that might lead to

their loss.
FINANCIAL HIGHLIGHTS

DEC 2020 PHP

Revenue 129,313.00M

Gross Profit 13,924.17M

Operating income -8,148.97M

Income before tax -12,211.32M

Net income -11,510.72M

EBITDA 6,419.76M

Diluted EPS -10.44

Dividends Per Share 0.78

Total Assets 210,827.30M

Total liabilities 173,366.26M

Total equity 38,556.43M

Operating cash flow -1,924.04M

 HISTORICAL DATA

Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020

113,811.47 133,613.08 161,167.78 179,626.18

Revenue 129,313.00M
M M M M

Gross Profit 20,542.73M 23,481.06M 28,205.27M 28,749.86M 13,924.17M

Operating
6,825.22M 7,259.01M 8,997.44M 6,691.28M -8,148.97M
income

Income before
7,730.12M 8,339.51M 10,408.45M 10,542.56M -12,211.32M
tax

Net income 6,164.73M 7,109.12M 8,212.60M 7,302.72M -11,510.72M

EBITDA 10,899.66M 12,004.17M 20,883.19M 20,186.67M 6,419.76M

Diluted EPS 5.64 6.49 7.44 6.60 -10.44

Dividends Per
2 2.32 2.57 1.97 0.78
Share

150,530.05 187,459.94
Total Assets 72,878.72M 89,801.07M 210,827.30M
M M

101,516.78 134,073.02
Total liabilities 38,580.14M 47,201.91M 173,366.26M
M M

Total equity 33,619.39M 40,799.81M 47,512.28M 53,487.51M 38,556.43M

Operating
14,527.67M 12,502.80M 19,775.64M 18,724.20M -1,924.04M
cash flow

REFERENCE

William, P. (2022,January 14). Jollibee Food Corporation. NikkeiAsia

https://asia.nikkei.com/Companies/Jollibee-Foods-Corp