Jollibee refuses to comment on potential $100-M Korean chicken acquisition

Jollibee [JFC 226.20 unch; 25% avgVol] [link] responded to a news report that it had been named the “preferred buyer” of Norang Tongdak, a popular KFC (Korean fried chicken) brand, in a deal that would see JFC and Elevation Equity Partners acquire 100% of Norang Tongdak from its two private equity holders, Q Capital Partners and Corstone Asia. Despite having reportedly signed a memorandum of understanding, JFC said that it is a “matter of policy” to “not comment on market speculation or ongoing commercial discussions.” The value of the transaction is thought to be around $100 million (~P5.6 billion). Norang Tongdak has approximately 700 locations that delivered around P4.4 billion in revenue in 2024.

MB bottom-line: Korean fried chicken makes me sick, so I’m not familiar with this sector or brand, but my quick Googling tells me that it has grown like crazy since the two private equity firms bought it back in 2020. In the five years since that acquisition, it’s increased its store count by 75% (from around 400 to more than 700). As one search result noted, “Korean-style fried chicken was ranked the favorite Korean food among foreign respondents in a 2023 survey conducted by South Korea’s agricultural ministry”. [link] Like the Compose Coffee buy, this deal could be great for JFC domestically in Korea, and a powerful portfolio add for JFC’s international offerings.

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