Jollibee Foods Corporation (PSE: JFC) and its subsidiaries, collectively the Jollibee Group, reported record second-quarter earnings for 2026, showcasing a clear margin recovery from first-quarter cost pressures and sustained global sales growth. The company announced that net income attributable to equity holders of the parent company rose 5.7% year-over-year to Php3.4 billion (approximately US$55 million), marking the highest quarterly net income on record. This performance was supported by improved operating leverage and pricing actions implemented during the quarter.
System-wide sales increased 14.2% year-on-year, driven by robust demand across the Group's Philippine and international businesses. Consolidated revenues grew 10.7% to Php85.9 billion (approximately US$1.4 billion). The company's global store network expanded 6.4% year-on-year to 10,767 stores across 33 countries, with franchised stores accounting for approximately 70% of gross new openings.
North America emerged as a key growth driver, with Jollibee's system-wide sales increasing 21.6% and same-store sales growing 8.6%. Smashburger also delivered 7.0% same-store sales growth. The company revealed plans to nearly double its Canadian footprint over the next five years by adding 26 locations in British Columbia and Edmonton to its existing 28 restaurants in Canada. This expansion underscores the brand's growing presence in one of its key international markets.
The Jollibee Group's second-quarter performance marked a sequential recovery from the first quarter. Consolidated revenues increased 12.2% versus Q1 2026, leading to a 25.3% increase in gross profit, a 56.1% increase in operating income, and a 130.5% increase in net income attributable to equity holders. Gross profit margin improved to 18.5% in Q2 from 16.5% in Q1, with further strengthening from 17.3% in April to 19.0% in June. Operating income margin increased to 7.2% in Q2 from 5.2% in Q1, while net income margin nearly doubled to 4.0% from 1.9%.
Richard Shin, Chief Financial and Risk Officer of JFC and Chief Executive Officer of Jollibee Group International Business, attributed the recovery to pricing actions implemented beginning in April, along with productivity, sourcing, and cost discipline initiatives. He noted that these actions contributed to the improvement in gross profit margins and supported stronger operating income and net income margins.
The International segment expanded by 25.4% in system-wide sales, led by Highlands Coffee (+46.7%), Compose Coffee (+39.7%), and EMEAA brands Jollibee and Chowking (+25.3%). The Philippine business delivered 5.7% system-wide sales growth, with Mang Inasal growing 10.7% and Jollibee growing 6.6%. Same-store sales growth for the quarter was 2.7%, with the international business up 4.4%.
Jollibee Vietnam emerged as one of the Group's strongest international growth engines, achieving system-wide sales growth of 47.6% and same-store sales growth of 17.9% in Q2. The brand was ranked as the No. 1 quick-service restaurant brand in Vietnam by Euromonitor International in its Consumer Foodservice 2026 study.
The company reported that reported profitability was affected by Php239.0 million (approx. US$3.9 million) in transition-related costs associated with the turnaround of Yonghe King and Smashburger toward predominantly franchised business models. These costs are part of ongoing efforts to strengthen the long-term quality and profitability of the portfolio.
For the full year 2026, the Jollibee Group maintained its guidance for system-wide sales growth of 8%-12% and store network growth of 5%-10%. However, same-store sales growth guidance was revised to 3%-4%, and the gross new store opening target was updated to 1,000-1,100 stores. Operating income growth guidance was revised to 10%-15%, reflecting updated assumptions and transition-related costs.
“Our second-quarter results demonstrate the continued strength of the Jollibee Group's global brand portfolio and the resilience of consumer demand across our key markets,” said Ernesto Tanmantiong, Global Chief Executive Officer of JFC. “We delivered healthy system-wide sales growth across all regions, supported by strong contributions from both our Philippine and international businesses, continued same-store sales growth, and ongoing expansion of our global store network.”
