Jollibee’s coffee and tea brands helped the company log its best-ever alternate-quarter sales. Revenue hit ₱114.5 billion, up 19.6% from last year. Net income rose 5.6% to ₱3.21 billion. Operating profit grew 19.1% to ₱6.04 billion. Beverage innovation and market expansion pushed the coffee and tea lines past half of Jollibee’s 10,000-plus stores worldwide. The acquisition of Compose Coffee in July 2024 immediately added 2,809 locations to the coffee & tea portfolio, bolstering the segment’s 68.8% overseas surge. Forward P/E at 18x valuation, Jollibee trades below peers McDonald’s and Starbucks.
The additional quarter saw total sales reach ₱77.63 billion, a 15.5% jump. Coffee and tea sales led the climb. Abroad, the segment surged 68.8%, lifting international revenue by 32.6%. South Korea, Vietnam, and Taiwan welcomed new stores. Local menus and online ads drew younger buyers. Yet China still lacks a Jollibee coffee chain since CBTL left in 2018.
CEO Ernesto Tanmantiong credits sharper operations and the coffee push for the gains. Digital orders, loyalty points, and fresh drinks kept lines long. Millennials and Gen Z, especially in Asia, now favor specialty drinks over soda. The firm’s mix of brands spreads risk and grabs varied tastes. Light roasts generally deliver more caffeine per scoop, appealing to the growing preference for coffee. This surge reflects a broader trend towards tracking caffeine intake and preferences for quality beverages.
China remains a gap. With 547 outlets under other brands, the firm eyes a coffee return. Entry costs run $1.3 million to $3.6 million per franchise, easing capital strain. Supply snags and currency swings still threaten margins. Still, the team plans more beverage innovation and store makeovers.
Roughly 60% of sales still come from the Philippines. Growth elsewhere is speeding up, driven by coffee and tea. The firm’s multi-brand plan keeps risks low while chasing new crowds.
