Jollibee Foods Shares Surge on Approval for Foreign Ownership Expansion
Jollibee Foods Corporation (JFC) shares experienced their largest single-day increase in nearly five years on Thursday after the Philippines Stock Exchange (PSE) approved the removal of a 40% cap on foreign ownership. The stock closed 11% higher, outperforming the Philippine benchmark index and leading large-cap stock gains.
The approval aligns with JFC's amended articles of incorporation, removing its ability to acquire or mortgage land. This change meets Philippine constitutional limits on foreign land ownership.
Analysts believe the amendment will enhance foreign participation in JFC, which outpaces McDonald's and Yum! Brands' KFC in the Philippines. "This could make the stock more attractive for foreign funds," said Francis Subido, senior analyst at Philippine National Bank.
The move positions JFC for potential inclusion in investment indices like MSCI, which considers foreign ownership. Foreign investor demand is expected to boost share prices.
In recent years, JFC has expanded its presence through acquisitions, including South Korea's Compose Coffee and Los Angeles-based Coffee Bean and Tea Leaf. The company continues to grow its Jollibee brand while pursuing strategic investments and new market opportunities.