Jollibee Foods Corp. is set to acquire a 70% stake in Compose Coffee, a popular coffee chain in South Korea. This strategic move aims to enhance Jollibee's presence in the rapidly growing coffee market, particularly in a country known for its high coffee consumption. The acquisition is part of Jollibee's broader strategy to expand its international footprint and diversify its offerings beyond its well-known fried chicken.
• Jollibee's investment in Compose Coffee is valued at $340 million.
• The acquisition will increase Jollibee's store count significantly, nearing 10,000 locations.
• It is expected to contribute 2% to Jollibee's revenues and 12% to pre-income tax earnings this year.
• Jollibee already owns stakes in other coffee brands, enhancing its market position.
This acquisition is crucial for Jollibee as it seeks to become a major player in the global coffee market. By tapping into South Korea's coffee culture, Jollibee is not only diversifying its business but also positioning itself for future growth in a competitive international landscape.
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