Jollibee Drops by Most in Three Weeks on Philippine Inflation

By Karl Lester M. Yap.

July 28 (Bloomberg) -- Jollibee Foods Corp. fell the most in three weeks in Manila trading on speculation that inflation will hurt earnings at the Philippines' biggest fast-food company.

Jollibee dropped as much as 4 percent to 35.50 pesos on the Philippine Stock Exchange, its biggest decline since July 3.

``Inflation is the more pressing concern as higher prices may deter customers,'' said April Tan, head of research at Citiseconline.com in Manila. The company's sales are still rising, although margins are narrowing, she said, citing discussions with the company.

Inflation may accelerate to almost 12 percent in July, the Philippine Daily Inquirer reported, citing documents from the central bank. Consumer prices rose 11.4 percent in June, the fastest pace in 14 years.

To contact the reporter on this story: Karl Lester M. Yap in Manila at kyap5@bloomberg.net.