Jollibee Foods Corporation (JFC) suffered financial knockout in the second quarter of 2020 due to strict lockdowns made by the COVID-19 pandemic.
According to JFC, most of the stores that were open relied heavily on delivery and take-out businesses while practically all dine-in operations were either still closed or had low level of sales volume.
“The business results were very bad but in line with our forecasts. We are now focusing on rebuilding our business moving forward along with implementing major cost improvement,” JFC President and CEO Ernesto Tanmantiong said in a statement.
"The spending for business transformation includes closure of 255 company-owned stores, change in ownership of 95 stores from company to franchisees, payment of pre-termination penalties of stores in the US and China, closure of supply chain facilities, and reduction in the size of the organization in various countries where we do business," said Jollibee chief financial officer Ysmael Baysa.
Jollibee operates 3,286 stores in the Philippines, including brands like Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, and Panda Express. Abroad, it operates 2,588 stores.
The company is estimating that financial performance will get progressively better in the next two quarters of the year as stores will have been being reopened and sales will have been gradually building up.
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