Financial Statement Analysis Jollibee Food Corporation

A CASE STUDY

Objectives of the Study:

Historical Background: Jollibee is founded by Filipino-Chinese Tony Tan Caktiong and his family began as a two-branch ice cream parlor in 1975 at Cubao offering hot meals and sandwiches. The original company name was Jolibe then Mr. Lumba next reformed the name Jolibe to Jolly Bee and made the two words form a single name Jollibee. Their success is phenomenon. Fast food popularity begins 1960sand the pioneers of this are Ray Kroc McDonalds and Colonel Sanders Kentucky Fried Chicken. They have the concept of Serve time constrained customers, good quality food, clean dining environment, having a low price and give convenience to the customer. Almost 15 years when Jollibee entered the industry but they rapidly became successful to other fast food that came first. It was incorporated a 100% Filipino company 1978 with seven outlets to explore the possibilities of a hamburger concept. 1979 is the introduction of Spaghetti Special. 1980, First TV commercial was launched by Jollibee, Chicken joy and French Fries are launched and it is the introduction of Jollibee mascot debuts. Then Jollibee Palabok Fiestas introduction was 1982. In 1984, Jollibee hit the P500 million sales mark, landing in the Top 500 Philippine Corporations. Their first international venture was at Singapore by 1985 and they already have 31 stores by 1986. In 1987, barely 10 years in the business, Jollibee landed into the countrys Top 100 Corporations. It became the first Philippine fast food chain to break the P1 billion sales mark in 1989. In 1993, Jollibee became the first food service company to

be listed in the Philippine Stock Exchange and the new Main Office site has been moved to Jollibee Centre Building in Ortigas Center, Pasig. By 1994 he got Greenwich for Jollibee expansion into the pizza-pasta segment and by the end of the year there has been already 148 Jollibee stores nationwide. By 1995 Jollibee acquires franchise of Delifrance and Jollibee successfully opens stores abroad: Guam, Dubai, United Arab Emirates, Kuwait, and Jeddah, and Kingdom of Saudi Arabia. By 1996 By the Far Eastern Economic Review Jollibee has been cited again as one of the leading companies in Asia having cited it last 1994 and on the same year Marys Chicken was born last July 10. It is a semi-self service restaurant and another Jollibee subsidiary it is also in the same year of launching of Jollibees Amazing Aloha, opening of first Jollibee in Hongkong and the launching of the project Maaga ang Pasko sa Jollibee and Chikiting Patrol: at Home Ako Dito. These projects main objective was to protect and contribute to the development of the Filipino children. By 1999 Jollibee opened 50 stores nationwide which makes a total of 350 stores and Cheezy Bacon Mushroom Burger has been introduced to its line of specialty burgers. By 2000,31 more Jollibee stores opened, bringing the total to 381 stores and Jollibee obtains Chowking Foods Corporation, Asian Business Magazine ranks Jollibee as the Most Admired Company in the Philippines and the 3rd over-all in Asia, surpassed only by global giants General Electric and Microsoft and reaching a system wide sales of P20 billion. Jollibee also acquired Red Ribbon Bakeshop on2005, another popular fastfood restaurant in the Philippines. In2006, they acquired the Dlifrance which further expanded its penetration in the food service industry particularly in the Frenchcafe-bakery, a growing segment of the Philippine food market. And until now Jollibee Corporation is continuously expanding and they already acquired Mang Inasal last Oct. 19, 2010. It was their competitor in their chicken product, but now it is one of their sister company. It is now part of Jollibee Food Corporation. Among all the fast food chains here in the Philippines, the Jollibee Food Corporation is considered to be the most popular choice among all the Filipinos. The Jollibee Food Corporation has been serving us with their delectable collection of fast food service and cleanliness offered by Jollibee is an advantage. Restaurants are not as quick as a Jollibee QSR which is an advantage for Jollibee having a superior service, and finally, Jollibee prices are reasonably priced that is has been a pinoy favorite. All Filipino will love Jollibee, if a new Jollibee branch will be build Filipino wait until it will open

and patronize it. The threat of substitute products is considerable. Local street food and high-end restaurants form two ends of a range of substitutes. Potential entrants face entry barriers that will hinder them from entering the industry. These are the inability to gain access to technology and specialized know-how, brand preference and customer loyalty, capital requirements, economies of scale, and strategically situated distribution channels. But Jollibee can overcome with this. Anew substitute for Jollibee product will be hard to enter to the industry and compete with Jollibee.