Jollibee Foods Corp. shares saw their largest single-day rally in 18 years on Tuesday after the Philippine fast-food giant announced a transformative plan to spin off its international business and list it on a U.S. stock exchange.
The move is designed to decouple the company’s high-growth global brands from its stable, cash-generative domestic operations, providing investors with "targeted exposure" to two distinct equity stories.
The company, which has spent the last two decades acquiring global brands such as Smashburger, Coffee Bean & Tea Leaf, and recently South Korea's Compose Coffee, has hired local and international advisers to structure the new entity, Jollibee Foods Corporation International (JFCI).
The spinoff, targeted for completion by late 2027, will be executed as a property dividend, with existing shareholders receiving JFCI shares proportionate to their current holdings.
Jollibee shares jumped as much as 14.5% in Manila—the most since October 2008—following a one-hour trading halt.
The market's reaction reflects growing optimism that a U.S. listing will unlock value for an international portfolio that now spans over 10,000 stores across 33 countries.
While the Philippine unit will remain listed on the local bourse as a "pure play" on domestic consumption, the U.S.-listed JFCI will serve as a global growth vehicle, leveraging its capital-light model and 6,859 overseas locations to compete directly with giants like McDonald’s (NYSE:MCD) and Yum! Brands (NYSE:YUM).