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One stock, two worlds: Is Jollibee's bold restructuring a risk worth taking?
Business
The Stock Market
One stock, two worlds: Is Jollibee's bold restructuring a risk worth taking?
One stock, two worlds: Is Jollibee's bold restructuring a risk worth taking?
Published Jan 6, 2026 11:39 am
Richard CW Shin, Tony Tan Caktiong and Ernesto Tanmantiong
Jollibee Foods Corp. surged the most in recent trading after announcing a plan to spin off its international business for a United States (US) listing, a move analysts say will finally decouple its high-growth domestic operations from underperforming global units.
As of writing, the stock climbed as much as 8.7 percent on Tuesday morning’s trades, reaching ₱199.40. The rally follows years of investor concern regarding the drag of overseas acquisitions on the company’s bottom line.
By carving out Jollibee Foods Corporation International (JFCI), the company is effectively separating its stable, cash-generative Philippine core from a volatile global portfolio that includes brands like Smashburger.
Nicky Franco, vice president and head of research at Abacus Securities Corp., said the restructuring allows the domestic business’s profitability to “shine through” after being weighed down by international losses.
“It's great news for shareholders. JFC's share price has been weighed down for a long time by losses at Smashburger so spinning off the international side will allow the profitability of the domestic business to shine through,” Franco said.
He expects the stock to undergo a re-rating, suggesting the potential for sustained valuation increase as the drag from units like Smashburger is removed from the local parent's balance sheet.
The maneuver marks Jollibee’s most significant capital markets exercise since its 1993 initial public offering.
Meanwhile, Juan Paolo Colet, managing director at Chinabank Capital Corp., described the move as a “novel” strategy for a Philippine blue-chip firm, noting it ensures existing shareholders can capture the full economic value of the foreign expansion.
“The spin-off and listing of JFCI should fully unlock the value of Jollibee's international business. We expect some excitement around JFC as investors speculate on JFCI's listing valuation,” Colet said.
While JFCI offers exposure to the massive global consumer market, Colet noted that it also carries the inherent risks of aggressive international scaling.
For the parent company, the spin-off transforms Jollibee into a “pure play” on the Philippine food-service sector. This allows management to focus on refreshing its mature domestic brand portfolio in a market where it maintains dominant share.
However, the transition poses logistical hurdles. Colet noted that the company must facilitate a cost-efficient way for local retail investors to hold and trade shares on a foreign exchange, potentially through specialized brokerage arrangements.
From a fundamental perspective, the separation creates distinct profiles for investors. Rachelle Biacora, a research analyst at COL Financial Group Inc., said the move highlights the specific risk and return characteristics of each entity.
“This allows investors to value the stable, cash-generative Philippine business separately from the higher-growth but more volatile international operations. Through the spinoff, the group is better-positioned to unlock shareholder value over time,” Biacora said.
While the international unit reported a net loss of ₱250 million in the first nine months of 2025 on revenues of ₱95.5 billion, it accounted for nearly 43 percent of total group sales.
Biacora cautioned that a smaller market capitalization for the standalone Philippine unit could result in reduced weightings in certain equity indices, though the long-term goal remains unlocking shareholder value.