Despite the posing threats from fast food chain competitors regarding new rules on labor contractualization and the rising cost of materials, Jollibee Foods Corporation still remains confident to keep its dominance in the fast food race.
Jollibee, the Philippine’s largest fast-food operator, expected a strong growth this year; doubling P14 billion compared to last year as reported in Stock Exchange.
Furthermore, the company said that the growth of organic sales was at its peak in at least a decade as per financial data from 2016’s second half.
Issues on Jollibee’s ability to pass on the rising cost to its consumers and the new government regulations on contractualization have been a growing concern; making its rival McDonald’s in a better position now, according to analysts Macquarie and COL Financial.
“The Jollibee Group of Companies has faced many challenges in the past. It had emerged stronger from these challenges and its profit recovered quickly,” the company said.
Jollibee’s stock price suffered for four straight days of losses from last week; having its lowest level on Monday in 18 months, however recovering 0.88 percent to P183.70 on Tuesday.
The rate of increase in cost is expected to slow this year compared to the last two years, JFC said.
Though there were two price increases last year, the sales volume has not been adversely affected, the company added.
Meanwhile, Jollibee has been committed to taking necessary steps to be at par compliant with the labor requirements and incurring costs since the third quarter of the previous year