Jollibee shares slide on Coffee Bean news

  • Page Views 950
  • JOLLIBEE Foods Corp. (JFC) saw its shares plunge to a new low last week following news that it was acquiring The Coffee Bean & Tea Leaf, which was operating at a two-year loss.

    Last Thursday, the listed fast-food giant recorded its biggest one-day loss of 8 percent and hit a fresh 52-week low of P231 after announcing the day before it was taking over the Los Angeles-headquartered coffee chain for $350 million (P18 billion). This resulted in Jollibee’s stock price tumbling by 10 percent week-on-week from P279.80 on July 19 to P252 last Friday.
    Year-to-date, Jollibee shares also declined by 14 percent, and by 23.26 percent from its highest price of P328.40 on January 29.

    Timson Securities Inc. trader Jervin de Celis said market sentiment was negative on the acquisition, given the $21-million (P1.07-billion) loss posted by Coffee Bean in 2018, which represented 12 percent of Jollibee’s net income and was expected to further drag its bottom line.

    Jollibee first acquired a 40-percent stake in Smashburger in October 2015 for $100.25 million. It later bought another 45 percent in February 2018 for $100 million and the remaining 15 percent for $10 million.

    “JFC is…one of the most expensive consumer stocks…so any slowdown in earnings may dismay investors and urge them to sell,” the trader said.

    He expects Jollibee’s full-year net profit to be flat or lower than the P8 billion it posted last year, but underscored that such “sentiment should only last in the short run.”
    Besides Smashburger, Jollibee also has stakes in Tortas Frontera, Tim Ho Wan in Singapore, Dunkin’ Donuts in China, Highlands Coffee, Hong Zhuang Yuan, Yonghe King, Hard Rock Café, and Pho24.

    The company also operates Red Ribbon, Chowking, Greenwich Pizza and Mang Inasal. It has a large stake in the firm that operates American fast-food chain Burger King in the country. (A. Ballesteros, TMT)

    Share

    New Posts Recently publish post More

    • 13 May 2021
      3 days ago No comment

      Duterte vs Pacquiao: No fight, say political insiders

      It started on May 3 when Senator Manny Pacquiao, a known ally of President Rodrigo Duterte, said that he finds Duterte’s recent stance lacking on reported Chinese incursions in the West Philippine Sea. “Sa akin, nakukulangan ako, nakukulangan ako kumpara doon sa bago pa siya tumakbo, nage-eleksyon pa lang. ...

    • 07 May 2021
      1 week ago No comment

      Your census.Your community.Your future.

      Census information is used to plan programs and services in your community. Complete your census now!   Related

    • 07 May 2021
      1 week ago No comment

      Applications open tomorrow for new pathway to permanent residency for essential temporary workers and international graduates of a Canadian institution

      Ottawa—Last month, the Honourable Marco E. L. Mendicino, Minister of Immigration, Refugees and Citizenship, announced an innovative pathway to permanent residence for over 90,000 essential workers and international graduates of a Canadian institution who are actively contributing to Canada’s economy. This special public policy will grant permanent status to ...

    • 07 May 2021
      1 week ago No comment

      Canada first country to approve Pfizer vaccine for 12-15-year-old kids

      Canada has become the first country to approve the use of the Pfizer-BioNTech COVID-19 vaccine for children between the ages of 12 and 15. Until Health Canada’s announcement of its approval Wednesday (May 5), the Pfizer vaccine was approved only for people 16 years and older. Health Canada has ...

    • 07 May 2021
      1 week ago No comment

      ABS-CBN marks 1 year shutdown – ‘Andito kami para sa’yo’

      Several Kapamilya stars took to social media to recount the harrowing experience of witnessing ABS-CBN going off air after the government issued a cease and desist order against the network exactly a year ago. On May 5, 2020, ABS-CBN signed off from free television and radio broadcast, a day ...

    %d bloggers like this: