DENVER – Smashburger, a fast-growing better burger chain, announced it has sold a 40 percent stake to Jollibee Foods Corp. (JFC) of the Philippines for $100 million.
The company remains 60 percent company owned and operated with more than 335 corporate and franchised restaurants across 35 states and seven foreign countries, according to the company. The transaction gives Smashburger an enterprise value of $335 million. Enterprise value is considered more comprehensive than market capitalization because enterprise value is a measure of a company’s total value that includes more than just equity.
Scott Crane, president and CEO of Smashburger, said the deal with Jollibee will enable Smashburger to expand. The company reported 20 percent annual growth.
“This partnership will provide additional energy and resources to Smashburger as we expand,” Crane said. “The team at Jollibee is focused on the same values as our company which, are to serve the highest quality food and provide a great dining experience for our guests.”
Jollybee Foods is the largest restaurant company in the Philippines. The publicly traded business operates and franchises a global network of more than 3,000 restaurants operating under the brand names of Jollibee, Chowking, Greenwich, Red Ribbon, Yonghe King, Hong Zhuang Yuan, Mang Inasal, Burger King Philippines, San Pin Wang, Jinja Bar. The company also owns a 50 percent stake in the Super Foods Group, an operator and franchisor of Pho 24 restaurants and Highlands Coffee.
“…This acquisition will make JFC’s presence in the US more significant, going beyond the Filipino market and serving mainstream consumers in the $100 billion US burger market, a food segment which is estimated to be almost three times larger than the pizza, sandwich or coffee segment in terms of sales,” said Tony Tan Caktiong. “This acquisition will make the US one of JFC’s most important markets and drivers of long term growth along with the Philippines, China and other Asian markets abroad.”