McDonald’s Rival Jollibee Soars on Plan to List Global Unit

(Bloomberg) -- Jollibee Foods Corp. volition rotation disconnected its planetary concern and database it connected a US banal speech arsenic the Philippine fast-food radical plots its planetary expansion, an announcement that fueled its shares’ largest single-day surge since 2008.

Jollibee, which progressively is taking purpose astatine planetary fast-food giants specified arsenic McDonald’s and Yum! Brands Inc. from Los Angeles to Ho Chi Minh City, said Tuesday said it has hired planetary and section advisers to enactment connected the spinoff and imaginable US listing. Jollibee Foods Corporation International would see each of the company’s businesses extracurricular its location market, the institution said successful a connection filed to the Philippine Stock Exchange, wherever its Philippine operations volition stay listed.

Jollibee shares — aft a one-hour trading halt — closed 14.5% higher, the astir since October 2008. It was the apical gainer among 30 firms that marque up the Philippines’ broader banal index, which roseate 2.49%, and the champion performer successful Asia connected Tuesday.

Establishing 2 listed businesses is designed to sharpen the strategical absorption of each institution and heighten the “clarity of each equity story,” Jollibee said.

The spinoff would let investors to worth the “stable, cash-generative Philippine concern separately from the higher-growth but much volatile planetary operations,” COL Financial Group expert Rachelle Biacora said successful a note. However, the company’s home portion whitethorn person a little marketplace value, which could impact its weighting successful immoderate banal indexes, she added.

“This clearer separation sharpens strategical absorption and gives investors much targeted exposure,” said Jasper Timoteo Ondap, Regina Capital Development successful Manila.

Jollibee shareholders would person a fig of shares successful the planetary concern adjacent to their institution holdings astatine the clip of the listing, the institution said.

The nutrient elephantine owns respective brands, including its iconic Jollibee concatenation known for its sweet-style spaghetti and crispy fried chicken.

Jollibee is gathering its planetary profile, striking 27 cross-border deals worthy astir $1.1 cardinal since 2000, according to information compiled by Bloomberg. That includes US brands specified arsenic Smashburger and Coffee Bean and Tea Leaf, which Jollibee struggled to crook around, and recently, South Korea’s Compose Coffee.

The radical had 10,304 stores arsenic of September, of which 6,859 were located overseas crossed implicit 30 countries, including China, Canada and Vietnam. International concern generated astir 43% of Jollibee’s 224.2 cardinal pesos ($3.8 billion) gross from January to September, up from its 28% stock successful 2019 and 21% information successful 2017, institution information show.