Philippine billionaire Tony Tan Caktiong took another step toward globalizing his Manila-based restaurant operator—and shareholders were not happy. On Wednesday, the share price of the largest restaurant operator in the Philippines, Jollibee Food Corporation, dropped more in one day than it has in two years.
The drop shaved more than $200 million from the fortune of Tony Tan Caktiong, who chairs Jollibee, one of the fastest-growing Asian restaurant companies. now estimates his net worth at $3.3 billion. He was the 6th-richest person in the Philippines last year, according toThe deal marks another expansion into the U.S. market for Caktiong. His publicly traded company acquired Colorado-based chain Smashburger in 2018 for $210 million. It has also been pushing its signature brand into America.
Coffee Bean & Tea Leaf lost $21 million on revenues of $313 million in 2018, according to Jollibee. There are plans for expansion, particularly in key American markets. In June, Coffee Bean announced it was planning to open 100 franchised locations in New York City over the next decade. The deal stipulates that Jollibee will invest $100 million for an 80% stake in a new Singapore holding company that will own Coffee Bean. Jollibee’s Vietnamese restaurant and coffee partner will own the other 20%. In a statement, Jollibee said it will also spend $250 million to pay off some of the coffee chain’s debt.