Jollibee Foods Corporation (JFC) reports robust first quarter sales, including a strong performance from The Coffee Bean & Tea Leaf and Highlands Coffee chains – but outlet growth remains flat amid rising inflation and costs
Like-for-like sales for The Coffee Bean & Tea Leaf increased 23.3% in the first quarter of 2022 | Photo credit: CBTL
Jollibee Foods Corporation (JFC) has posted robust first quarter results, including positive sales for its The Coffee Bean & Tea Leaf and Highlands Coffee chains.
The Filipino foodservice giant said system-wide sales grew 25.5% to ₱60bn ($1.14bn) during the period. However, despite year-on-year profits rising 16.1% ($132m), JFC said inflationary pressures were a headwind across its portfolio and that it had responded by increasing prices and introducing operational efficiencies.
JFC, which operates prominent brands including Burger King, Dunkin and Hard Rock Café, highlighted The Coffee Bean & Tea Leaf (CBTL) as a key performer, with like-for-like sales increasing 23.3% compared to the same period in 2021.
Nevertheless, while JFC opened 28 CBTL new stores in the first quarter of 2022, it also permanently closed 14 sites, citing pandemic-related trading pressures.
Founded in Los Angeles, USA, in 1963, CBTL was acquired by JFC for $350m
in late 2019. However, the current number of outlets for the coffee chain stands at 1,062, a decline from the 1,189 global store portfolio in operation when the chain was purchased three years ago.
JFC also owns Vietnamese coffee chain Highlands Coffee
, which it highlighted the company as ‘the fastest growing business in the Jollibee Group’. The coffee chain now has 500 outlets, predominantly in its native Vietnamese market, with 19 new Highlands Coffee stores having opened in the last three months, and two permanently closing.
“Despite the challenges brought about by the surge in Omicron variant in some markets where JFC operates and the increase in prices of raw materials and energy, our business performed well and even set new record for sales for a first quarter,” said Ernesto Tanmantiong, CEO, JFC.
JFC, which operates more than 5,800 stores in 34 countries, is primarily involved in the development, operation and franchising of several quick service restaurants, notably its flagship brand Jollibee, alongside more recent ventures Smash Burger, Greenwich Pizza, and Burger King in the Philippines. It also operates franchised locations of Dunkin' in China.