Jollibee fattens up share in US burger market
Homegrown fastfood giant Jollibee Foods Corp. wants to take a bigger bite out of the burger market in the US.
The Asian food restaurant giant has gobbled up an additional 45 percent of American hamburger chain Smashburger for $100 million.
The purchase will raise the Jollibee Group’s stake in Smashburger to 85 percent when the deal is sealed.
Headquartered in Denver, Colorado, Smashburger has 365 restaurants (186 owned and 179 franchised) worldwide in 38 states in the US, and in 10 foreign markets.
The consolidation of Smashburger into JFC will increase the group’s worldwide store network by 365 stores to a total of 4,162. This will also expand JFC?s geographical presence from 16 countries to 21 adding Costa Rica, Egypt, El Salvador, United Kingdom (England and Scotland), and Panama.
?With this acquisition of more shares, JFC will have a more significant business in the United States. The US will increase its contribution to our worldwide system wide sales from 5 percent to 15 percent,? said JFC chairman Tony Tan Caktiong.
Tancaktiong said this would also allow JFC to hit its goal of 50/50 revenue split between the Philippines and overseas operations, Caktiong said.
JFC chief executive officer Ernesto Tanmantiong said the consolidation would also increase the group’s store network in the US by five-fold to 417 and will expand its presence to 39 states in the US from 10 states.
It will also increase store network in Canada from two to eight.