THE PHILIPPINES, OCTOBER 3, 2011: Further cementing its status as the country’s leading fast-food chain, Jollibee Foods Corporation (JFC) recently acquired a majority stake in the Philippine franchise of Burger King for PHP65.5 million.
In a disclosure to the Philippine Stock Exchange dated September 30, 2011, Jollibee announced that it has inked the agreement giving the corporation a 54% share in the local franchise of Burger King (BK Titans Inc.). The American fast-food chain is based in Miami, Florida. While it only has 23 branches in the Philippines as of late, mostly located in Metro Manila, the company managed to pull in PHP800 million in annual revenues.
“Jollibee’s acquisition of a majority stake in the BK Titan’s Inc. will enable it to have in the premium price segment of the hamburger category of Philippine fast food market,” Jollibee said in an official statement.
With this recent acquisition, Jollibee is seen to penetrate a niche market, tap the rising affluence of consumers, and expand operations. Presently, Burger King’s menu offerings are priced at least 30% higher than Jollibee’s equivalents.
Jollibee’s most recent acquisition is its buy out of chicken chain Mang Inasal for PHP3 billion. JFC is currently operating almost 2,000 stores in the country under the brands Jollibee, Chowking, Greenwich, Mang Inasal, and Café Ti Amo. The group also operates 437 stores abroad, including branches the United States, Hong Kong, and Saudi Arabia.
Sources: Inquirer.net, BWorldonline.com
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