Gross Margin - Jollibee Foods Corp (OTC:JBFCY)

Watchlist Manager

Watchlist

Price: 14.2 USD 1.87%

Market Cap: 4B USD

18.9%

Current

18%

Average

52.5%

Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin

18.9%

Gross Profit

56.4B

Revenue

297.9B

Gross Margin Across Competitors

Country		Company	Market Cap	Gross Margin
PH	J	Jollibee Foods Corp XPHS:JFC	234.2B PHP	19%
US		McDonald's Corp NYSE:MCD	219B USD	57%
JP		DD Holdings Co Ltd TSE:3073	18.1T JPY	79%
US		Starbucks Corp NASDAQ:SBUX	100.2B USD	23%
UK		Compass Group PLC LSE:CPG	39.9B GBP	73%
US		Chipotle Mexican Grill Inc NYSE:CMG	52.3B USD	31%
US		Yum! Brands Inc NYSE:YUM	42.4B USD	46%
CA		Restaurant Brands International Inc NYSE:QSR	30.9B USD	55%
IN		Eternal Ltd NSE:ETERNAL	2.6T INR	59%
US		Darden Restaurants Inc NYSE:DRI	23.4B USD	22%
CN	M	MIXUE Group HKEX:2097	154.4B HKD	32%

Jollibee Foods Corp
Glance View

Economic Moat

None

Market Cap

4B USD

Industry

Hotels, Restaurants & Leisure

Jollibee Foods Corporation (JFC), often referred to as the pride of the Philippines, has woven a unique tale of success that transcends borders. Founded by Tony Tan Caktiong in 1978, Jollibee began its journey as a modest ice cream parlor before transforming into a fast-food behemoth. The company's captivating story is rooted deeply in its ability to adapt and diversify, understanding the intricate taste preferences of not just Filipino diners but increasingly global markets. Driven by a fierce sense of competition against global giants like McDonald's, Jollibee didn't just imitate; it innovated with an appealing menu of traditional Filipino flavors and Western fast-food staples. This successful marriage of tastes has become its signature, all underpinned by an operational model that focuses on strategic franchising, efficient supply chain management, and harnessing the ubiquity of local and international synergies. The core of Jollibee’s economic blueprint is its ability to produce and sell fast-food offerings at a high turnover rate while maintaining operational quality, allowing it to generate substantial revenue streams. In the Philippines, JFC dominates the fast-food sector, effectively outpacing American rivals by tapping into the heartstrings of local sentiments and creating an emotional connection with its audience. Through aggressive expansion and acquisition strategies, including buying brands like Coffee Bean & Tea Leaf and Smashburger, JFC has consistently bolstered its international presence. These subsidiary brands complement its core operations, diversifying its revenue avenues and hedging geographical risks. Jollibee’s profitability hinges on maximizing economies of scale, brand loyalty fostered through targeted marketing, and the continual evolution of its menu to resonate with a broad customer base. Thus, JFC's rise to becoming a household name globally underscores a consummate balance of tradition, innovation, and strategic foresight.

View JBFCY Analysis

JBFCY Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Johnson & Johnson NYSE:JNJ	207.16 USD -0.16%
	Berkshire Hathaway Inc NYSE:BRK.A	754 997.13 USD 1.34%
	Bank of America Corp NYSE:BAC	56.46 USD 1.47%
	Mastercard Inc NYSE:MA	586.14 USD 1.07%
	UnitedHealth Group Inc NYSE:UNH	347.38 USD 1.66%
	Exxon Mobil Corp NYSE:XOM	120.97 USD 2.09%

	Franklin Covey Co NYSE:FC	17.82 USD -0.89%
	Mohawk Industries Inc NYSE:MHK	112.85 USD 5.6%
	Ardmore Shipping Corp NYSE:ASC	11.65 USD -0.17%
	ASGN Inc NYSE:ASGN	48.37 USD 0.27%
	Skyworks Solutions Inc NASDAQ:SWKS	60.91 USD 1.82%
	Weatherford International PLC NASDAQ:WFRD	86.36 USD -3.38%

	Johnson & Johnson NYSE:JNJ	207.16 USD -0.16%
	Bank of America Corp NYSE:BAC	56.46 USD 1.47%
	Mastercard Inc NYSE:MA	586.14 USD 1.07%
	Salesforce Inc NYSE:CRM	261.95 USD -1.57%
	Abbvie Inc NYSE:ABBV	226.17 USD -3.11%
	Home Depot Inc NYSE:HD	360.52 USD 3.28%

	Monolithic Power Systems Inc NASDAQ:MPWR	946.07 USD -1.36%
	Applovin Corp NASDAQ:APP	624.4 USD -1.35%
	Apple Inc NASDAQ:AAPL	256.3 USD -1.55%
	NVIDIA Corp NASDAQ:NVDA	184.54 USD -2.42%
	Cal-Maine Foods Inc NASDAQ:CALM	77.22 USD -0.76%
	Pro Medicus Ltd ASX:PME	215.92 AUD 0.43%

Jollibee Foods Corp
OTC:JBFCY