Home >> Daily News >> Philippines News >> Capital Markets >> Philippine fast-food giant divests businesses in Taiwan, Shanghai
|10 December 2009
Philippine fast-food giant divests businesses in Taiwan, Shanghai
Jollibee Foods Corp has given up its minor restaurant interests in Taiwan and Shanghai, citing the need to focus on "building bigger brands" in mainland China, reported Philippine Daily Inquirer.
In a disclosure to the Philippine Stock Exchange Wednesday, the local fast-food giant JFC said it had signed a deal to divest Lao Dong and Chun Shui Tang from its overseas business portfolio effective immediately. These two businesses account for less than 1 percent of the worldwide sales of JFC, which has been expanding overseas over the years.
The Filipino company owns 70 percent of Lao Dong Pte. Ltd. (Singapore) and its partners agreed to terminate the joint venture that owns and operates eight stores in Taiwan.
JFC, the exclusive franchisee in China of Chun Shui Tang (CST) Tea House, a brand that originated in Taiwan, also terminated this franchising agreement after shutting down its two CST stores in Shanghai in recent months.
"Maybe they are not performing as well as expected," said Joseph Roxas, president of local stock brokerage Eagle Equities Inc.
With this divestment, JFC still has Yonghe King and Hong Zhuang Yuan businesses in mainland China. These brands have a total of 197 stores as of end-October and now account for 9 percent of the company's worldwide sales and are growing at a double-digit rate.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below