Jollibee scouting for a $1B US-based company to acquire

JFC Chairman TonyTan-Caktiong

SAN FRANCISCO — Jollibee Foods Corp, the Philippines’ largest fast food company, is scouting for a US-based fast food firm with a market value of at least $1 billion to acquire to boost revenues from outside its home base.

A stock market filing confirmed comments made by JFC Chairman Tony Tan-Caktiong to The Business Mirror newspaper stating that a brand with a $1-billion market capitalization would be right for the company’s expansion into the US market, reports the New Jersey Telegraph.

“It should be a strong regional brand so that we can expand. We don’t want a brand that’s already big,” Tan Caktiong was quoted as saying by BusinessMirror.

Tan-Caktiong said the company may consider tapping an equity partner or into a fund.

Jollibee, has over 2,200 stores in the Philippines and 1,000 stores overseas including 29 in the US and is keen on increasing the share of revenue from the US and other countries.

“We’d like to target 50-50 revenue sharing between Philippine stores and overseas stores. But we cannot do that yet because the Philippine (business) keeps growing so the ratio was kept at 80-20,” Tan-Caktiong said.

Jollibee, which has higher sales than McDonalds and KFC restaurants in the Philippines, joined up with a partner in a tie-up with Dunkin’ Brands Group Inc. to open 1,400 new Dunkin’ Donuts cafes in China over the next 20 years.

Janney Capital Markets securities analyst Mark Kalinowski speculated that among his six potential candidates that fit Jollibee’s target, Jack in the Box and Krispy Kreme seemed the most likely.

But, he added that he wouldn’t rule out other privately held chains of similar size, including CKE Restaurants Inc., which operates and franchises the Carl’s Jr. and Hardee’s brands and was acquired by Roark Capital Group in 2013, as well as Whataburger or Culver’s.

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