Analyst cites risks of Jollibee plan to spin off US operations

JOLLIBEE FOODS CORP. (JFC) plans to spin off its international business and list it on a US stock exchange by late 2027, a move investors generally see as a value booster, but one that comes with added risks, analysts said.

“Existing shareholders stand to benefit from a property dividend that grants them direct ownership in the new international entity, essentially providing a ‘free’ entry into a Wall Street-listed company,” Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said in a Viber message.

“However, investors must also weigh the increased risk profile of the international arm, which will face fiercer competition and higher operational volatility as it tries to scale brands like Smashburger and The Coffee Bean & Tea Leaf in saturated Western markets,” he added.

The move is designed to create two listed entities: a domestic business offering steady profit and a capital-light international unit focused on global expansion. Jollibee shareholders will receive shares in the new company equivalent to their existing holdings, allowing them to choose between a defensive local stake or a high-growth international play.

Mr. Arce said the late 2027 timeline indicates Jollibee is taking time to prepare the international unit for the scrutiny of US capital markets and to equip it with the specialized management and financing needed to compete globally.

He noted that listing abroad might allow Jollibee to capture the valuation premium typically awarded to global restaurant chains.

Meanwhile, Jollibee inaugurated its fourth food commissary in Guinsay, Danao, Cebu, supporting regional expansion and job creation. The facility, which serves Jollibee and six of its 13 brands, aims to optimize logistics across the Visayas and Mindanao.

Every new commissary Jollibee opens represents more jobs, more security and more growth for our local industries,” Trade Secretary Ma. Cristina A. Roque said in a statement. 

Jollibee President Joseph C. Tanbuntiong said the project strengthens regional operations and ensures efficient distribution.

Jollibee shares fell 1.72% or P3.60 to close at P206 each on the Philippine Stock Exchange. — Alexandria Grace C. Magno and Justine Irish D. Tabile