Jollibee acquires All Day Fresh Co. Ltd.

Jollibee Group, through its subsidiary Jolli-K Co. Ltd., has finalized an agreement to acquire All Day Fresh Co. Ltd., the operator of the Korean hot pot chain Shabu All Day, for $87 million. The acquisition will integrate Shabu All Day into Jollibee Foods Corp.'s (JFC) financial statements upon completion, pending fulfillment of closing and financing conditions.

This transaction, valued at approximately KRW127 billion, is projected to boost JFC's revenues by 2% and elevate its international business contribution to 46% of global revenues. The deal is also anticipated to spur an 8% growth in global earnings before income tax and increase the group's store count by around 1%, expanding with 169 new outlets. Established in 2014, All Day Fresh leads in market presence and sales among hot pot chains in South Korea, generating system-wide sales of $285 million.

Jollibee Group aims to leverage the acquisition to expand its footprint in the Asian dining sector, particularly focusing on untapped opportunities across the Philippines and Southeast Asia. This acquisition highlights Jollibee's strategic expansion into fast-growing dining categories, as emphasized by Tony Tan Caktiong, Chairman of JFC, who stated the group's commitment to acquiring profitable businesses that enhance long-term shareholder value. Gordon Cho, Managing Partner at Elevation Equity Partners Korea, expressed confidence in Jollibee's ability to accelerate the growth of Shabu All Day, with Elevation retaining a 30% stake in Jolli-K.

Within the competitive landscape, this acquisition aligns with JFC's ongoing strategy to amplify its presence in the global food service market. Jollibee's extensive brand portfolio, which includes notable names such as Smashburger and Tim Ho Wan, positions it to capitalize on rising consumer demand for varied dining experiences. The company is also progressing plans for a standalone international business unit, Jollibee Foods Corporation International (JFCI), which it intends to list publicly by 2027, emphasizing its strategy to maximize global operational scale.

Completion of the Shabu All Day acquisition awaits regulatory clearances and is contingent on specified closing conditions. The deal signifies another step in JFC’s disciplined capital allocation approach, emphasizing investments that deliver both financial accretion and operational scalability.