When Jollibee Foods Corporation (JFC) first opened outlets overseas in the mid-1980s, its primary revenue engine was the Filipino diaspora longing for a taste of home. Today, the Manila-headquartered fast food titan with over 10,700 stores covering 20 brands in 33 countries is making a bolder bet: winning over non-Filipino taste buds from London and Los Angeles to Hanoi and Hainan.
Backed by localized menu innovations for its 557 overseas own-name stores, from Middle Eastern-inspired pistachio kunafa sundaes to custom adaptations in Europe, and further expansion of its other holdings, JFC is keen to demonstrate it is serious about its bid for quick-service restaurant dominance. The strategy is expected to be anchored by a spinoff of all assets outside its domestic market, which the company announced on September 1 would be in Hong Kong.
Analysts said the latter move—announced in January—has gained greater significance because the Philippine economy has been one of the hardest hit by the global energy crisis triggered by the Iran war, and Jollibee’s profits have suffered as a result. In the first half of 2026 the domestic operations accounted for 75% of global operating income but only 54.3% of gross profit. On August 31, the peso hit an all-time low against the dollar.
“Our international growth strategy goes beyond opening more stores. We are focused on building local relevance in each market through consumer insight, product innovation, sustained marketing support, consistent product quality, and strong execution,” JFC told Nikkei Asia in a statement.
Through this two-pronged strategy, the company with its well-known red, yellow, and white bee mascot is seeking to both expand its appeal to global customers and offer investors direct exposure to its international assets. These include South Korean coffee giant Compose Coffee, Michelin-starred dim sum chain Tim Ho Wan, and Denver-based Smashburger, as well as the overseas Jollibee outlets.
“Our international strategy is anchored on building mainstream brands in each market, not solely serving Filipino diaspora communities,” JFC added. “We continue to see strong traction in markets such as North America and Vietnam, supported by product relevance, strong brand love, digital engagement, and disciplined local market execution.”
Despite a turbulent start to 2026—first half net profit was down 16.7% year-on-year as costs rose and revenue growth eased—the approach is being recognized. In August, JFC beat 11 rivals to be named the Global Growth Champion at the inaugural Globie Awards run by the Global Restaurant Leadership Conference. In April, US magazine Time named it as one of its 100 most influential global companies of 2026. And readers of the newspaper USA Today last month voted it “No. 1 Best Fast Food Fried Chicken” in the US for the third consecutive year.
The company began as a modest ice cream parlor in Quezon City in 1975 before pivoting to hot meals after founder Tony Tan Caktiong, the son of Chinese immigrant parents, noticed a surge in interest for savory offerings. Officially incorporated in 1978, JFC captured the Philippine market with staples like its signature Chickenjoy fried chicken, outmaneuvering global giants like McDonald’s on its home turf.
Singapore’s The Business Times wrote in 1984, ahead of the company’s first international foray—into the city-state—that “the secret of the Jollibee hamburgers lies in the spices, minced onions and eggs which are mixed into the patty before cooking. The result of this ‘cooked-in’ taste is said to be unique and preferred over the blandness of the Western hamburger.”
In 1993, JFC listed on the Philippine Stock Exchange (PSE) and began acquiring domestic food brands that were household favorites, such as pizza chain Greenwich, Chinese fast food group Chowking, bakery Red Ribbon, and Mang Inasal, a Philippine chicken barbecue business.
Based on analysis by the Canadian government, in 2024 JFC controlled over 50% of the Philippines’ fast food restaurant market, overtaking the share of its primary international competitor, McDonald’s.
While its Philippine operations remain a dependable base with 3,516 domestic stores, the majority of the group’s growth is now outside its home market. Bloomberg estimated its “cross-border deals” have been worth more than USD 1.1 billion since 2000.
The company controls its global footprint through a mix of wholly owned subsidiaries, majority-owned growth platforms, and master franchise agreements.
Domestically, JFC maintains complete control over its core Philippine portfolio and also holds local master franchise rights for foreign brands operating in the Philippines, including Burger King, Panda Express, Yoshinoya, Common Man Coffee Roasters, and Tiong Bahru Bakery.
Its international assets include Chinese business units Yonghe King and Hong Zhuang Yuan. To expand its beverage presence, the group holds an 80% stake in Los Angeles-based The Coffee Bean & Tea Leaf, 70% in South Korea’s Compose Coffee, 60% in Vietnam’s SuperFoods Group (owner of Highlands Coffee), and 51% in Taiwan-based bubble tea chain Milksha.
JFC complements these assets with minority positions in entities such as North American Mexican concept Tortazo and beverage automation provider Botrista.
While the spinoff plan has yet to be finalized, it will, according to the September 1 announcement, divide the conglomerate into two distinct, independently listed entities. Under the plan highlighted in corporate disclosures, JFC will retain its PSE listing, operating as a platform focused on the group’s mature home market. Meanwhile, a newly created entity, Jollibee Foods Corporation International (JFCI), will list in Hong Kong, probably in 2027. Existing shareholders will receive shares in the new entity equal to their ownership in JFC at the time of the listing.
“We view the planned spinoff positively, as separating the Philippine and international businesses should actually reduce the risk of a holding-company discount by making each entity easier to value on its own merits,” April Lee Tan, head of research at Manila-based COL Financial, told Nikkei Asia, before the September 1 announcement. “The domestic business could be valued as a stable, cash-generative operation, while the international arm can be benchmarked against global peers and potentially command a higher valuation multiple.”
JFCI will oversee all international operations, embracing a capital-light, franchise-led growth model across global markets. Its portfolio will encompass flagship overseas Jollibee outlets alongside major international acquisitions such as Smashburger, The Coffee Bean & Tea Leaf, Compose Coffee, and Highlands Coffee. Franchisees now operate 70% of its global network, a setup JFC said has “supported faster expansion, disciplined capital allocation, and stronger returns on invested capital.”
More than 4,500 of JFC’s 7,251 international stores are now beverage outlets, led by Compose Coffee with 3,098 stores, The Coffee Bean & Tea Leaf with 1,097 stores, and Highlands Coffee with 1,062 stores.
Its international Chinese cuisine offerings include fast-casual operator Yonghe King in mainland China, Tim Ho Wan, and recent hotpot acquisitions such as Shabu All Day.
“JFC’s international expansion strategy is becoming more franchise-led, which allows the company to grow its store network without taking on the full capital burden of expansion. This is evident in the coffee and tea segment, especially Compose Coffee, which operates on a fully franchised model,” Tan said. “JFC is also converting selected company-owned stores under key brands into franchises. This asset-light approach should support faster international expansion while lowering capex requirements and preserving cash for other investments.”
Cristina Ulang, head of research at Manila-based First Metro Investment, told Nikkei Asia that the international spinoff “will unlock value growth” driven by “quality-led execution, solid management and top-line momentum building into the third quarter of this year.” She added that the group’s “international business is outperforming global peers, with a growing loyalty platform and building franchise momentum in North America. Smart money is moving Wall Street, providing the biggest capital appreciation potential for great global brands like JFC.”
For Aniceto Pangan, an equity trader at Diversified Securities, “overall, things look promising in the international market, except China,” where the domestic consumer economy is sluggish.
The situation is less rosy domestically, although Ulang described same store sales growth as “solidly positive,” and this is reflected in Jollibee’s overall guidance.
When announcing its second-quarter results, it trimmed its store expansion target for the year to 1,000–1,100 locations, down from an earlier target of 1,200–1,300, citing “ongoing portfolio optimization and the timing of store openings and closures.” It closed 207 stores in the first half of the year. It has also cut its 2026 operating income growth target to 10–15% from 15–18%, as well as planned capital expenditure by about 10%.
This year’s drop is the first since the Covid-19 pandemic. In 2020 net losses hit PHP 12.6 billion (USD 201 million), but five years later net profit had recovered to PHP 11.01 billion (USD 175.6 million), 47% above the 2019 figure.
JFC said it recognized “the market’s concerns and understands that investors are looking for clear evidence of sustained earnings recovery and stronger returns from our global expansion.” The company’s share price has dropped over 30% since the start of the Iran war, although it is up 27% since hitting a multi-year low in late June.
“Ultimately, we believe investor confidence is earned through performance,” the group added.
Pangan attributed the margin pressure to “inflationary pressures caused by the conflict in Iran,” noting that Philippine consumer prices accelerated to 7.2% in April, up from 4.1% in March, the month after the regional conflict began.
Despite market headwinds, JFC remains focused on its long-term vision. “Our objective is to build Jollibee into a truly global brand,” the company said, “loved not only by Filipinos but by people from different cultures and communities in every market we serve.”
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.
Note: PHP figures are converted to USD at rates of PHP 62.69 = USD 1 based on estimates as of September 8, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.