Jollibee Foods Corporation has acquired a 70% majority stake in South Korea’s rapidly expanding Compose Coffee chain for $340 million, positioning the Filipino food giant to accelerate its international growth across Southeast Asia.
The Acquisition and Ownership Structure
Filipino global food chain Jollibee Foods Corporation (JFC) acquired a 70% stake in Compose Coffee for $340 million, translating to roughly P20 billion. Private equity firms Elevation Equity Partners Korea Limited and Titan Dining II LP retained 25% and 5% of Compose Coffee, respectively, according to corporate disclosures.
The transaction values the target company at approximately eight times its annual earnings, or EBITDA. In sealing the agreement, JFC executives determined they secured a more advantageous deal compared to the industry’s average enterprise value multiple. At the time of the deal, Compose Coffee maintained a debt-free balance sheet alongside superior cash returns and excellent profitability margins
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Growth and Roasting Infrastructure in South Korea
Founded in Busan in 2014, Compose Coffee expanded rapidly to become one of South Korea’s most popular low-cost coffee stores. By June 2024, the coffee chain operated 2,612 stores across South Korea, a footprint that included 2,470 franchised stores in corporate updates and reached 3,000 locations by September 2025 after adding 1,000 stores in an 18-month period.
The brand’s expansion relies heavily on its supply chain infrastructure. Compose Coffee established its first in-house roasting facility in 2016 before opening South Korea’s largest coffee roasting factory in 2022. This facility, operated through subsidiary JMCF Co. Ltd., allows the company to produce its signature Bitterholic Blend in-house and distribute specialty beans at low cost.
The brand was named South Korea’s favorite coffee shop at the 2023 Korea’s Most Loved Brand Awards, an event organized by Forbes Korea and sponsored by South Korea’s Ministry of Science and ICT and Ministry of Trade, Industry, and Energy.
Southeast Asia Expansion and International Strategy
Building on its domestic market share, the coffee chain announced plans to expand in Southeast Asia as part of JFC’s broader strategy to accelerate global growth. Company leadership views the brand as a key vehicle to capture demand driven by the global momentum of K-food.
JFC chief financial officer Richard Shin noted that Compose Coffee is a strategic growth engine for the Jollibee Group’s international portfolio, and we are committed to investing behind its global potential
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The acquisition represents JFC’s largest purchase in terms of store count. It brought the group’s total store network closer to 10,000 locations globally, with more than 66% of JFC’s stores operating outside the Philippines.
International Debuts: Opening Doors in the Philippines
Following its expansion to Taiwan, Compose Coffee officially opened its first store in the Philippines at Ayala Malls Market! Market! in Bonifacio Global City (BGC), Taguig City.
The BGC branch features self-ordering kiosks equipped with digital payment options including GCash, Maya, and major credit cards. To promote the opening, the store ran a Buy 1, Take 1 promo on featured drinks from August 7 to 13, 2026 during the first three hours of store opening each day.
The Philippine menu adapts the brand’s Venti-sized (20oz) hot and cold beverages, featuring classics alongside local exclusives like the Orange Americano and Salty Cream Latte. BTS member V (Kim Taehyung) serves as the global brand ambassador for Compose Coffee.
Corporate Context and Upcoming Financial Milestones
The integration of Compose Coffee adds to an extensive international portfolio. JFC’s system includes wholly owned brands such as Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Yonghe King, Hong Zhuang Yuan, Smashburger, and Tim Ho Wan, alongside franchised operations like Burger King, Panda Express, Yoshinoya, Common Man Coffee Roasters, and Tiong Bahru Bakery in the Philippines.
The group also holds ownership stakes in Highlands Coffee, The Coffee Bean and Tea Leaf, SuperFoods Group, and Milksha, plus membership interests in Tortazo LLC and Botrista.
As of September 2025, JFC operated 6,859 international stores, spanning 535 locations in China, 355 in North America, 410 across Europe, the Middle East, Africa, and Australasia, and 928 units primarily under Highlands Coffee in Vietnam. This expansion precedes JFC’s corporate restructuring plans to establish a standalone international business, Jollibee Foods Corporation International, which the company intends to list on a US securities exchange by 2027.
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