Fast-food giant Jollibee is set to close 255 stores following a net loss of USD 240 million (Php 12 billion) in the first half of 2020, in an article by Rappler. Moreover, in an article by Mashable, Jollibee’s shares also took a dip – with USD 2.2 billion ‘wiped out in market value, the worst performance in the Philippines stock exchange in two decades.’
In the country, Jollibee Foods Corporation controls approximately 56% of the country’s USD 5 billion fast food market. During the lockdown, half of its stores were temporarily closed. To date, it has 3,286 stores in the country alone and has 2,588 stores around the globe. Read more: Philippine fast food giant Jollibee loses USD 2 billion and will be closing 255 stores, an article by Mashable.
“The business results were very bad but in line with our forecasts. We are now focusing on rebuilding our business moving forward along with implementing major cost improvements under our Business Transformation program,” states Ernesto Tanmantiong, Jollibee Foods Corp CEO. Moreover, Jollibee Chief Financial Officer Ysmael Baysa explained that 255 stores will have to be closed with 95 of which have to switch in ownership.
“The spending for business transformation includes closure of 255 company-owned stores, change in ownership of 95 stores from company to franchisees, payment of pre-termination penalties of stores in the US and China, closure of supply chain facilities, and reduction in the size of the organization in various countries where we do business,” states Ysmael Baysa, Chief Financial Officer of Jollibee.