00:00This is Jollibee, the Philippine fast food giant famous for fried chicken and sweet spaghetti.
00:07But this dim sum chain, Tim Ho One, is part of Jollibee too.
00:11And so is Smashburger.
00:13That's why Jollibee is splitting up its restaurant empire,
00:17the mature, profitable Philippine operations on one side
00:21and the fast-growing collection of international brands on the other.
00:25But it shouldn't rush in taking the newer international business public here in Hong Kong.
00:30It's just not ready.
00:31Jollibee's growth story is impressive.
00:34International sales, including franchises, jumped by 27% last year.
00:39That's almost three times the pace of the Philippine business.
00:42But expansion doesn't tell the whole story.
00:45The Philippine business is the cash cow.
00:48Last year, it generated more than all of Jollibee's net income
00:52because the international businesses collectively lost money.
00:56But there are bright spots.
00:57Jollibee's coffee brands are performing well
01:00and its North American business is growing.
01:02All that should make it easier to see exactly which brands need more investment
01:06and which needs fixing.
01:08But Jollibee should give its new businesses at least another year to stand on its own
01:13before asking public market investors to value it.
01:17The split makes sense.
01:18The IPO should wait.
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