Margin recovery and record earnings underscore the Jollibee Group’s growth momentum, as Jollibee Canada prepares to nearly double its network over five years
Key Highlights:
- Record quarterly earnings: Net income attributable to equity holders of the parent company rose 5.7% year over year to Php3.4 billion, or approximately US$55 million, marking the Jollibee Group’s highest quarterly NIAT on record, supported by margin recovery from first-quarter cost pressures and improved operating leverage.
- Sustained global sales growth: System-wide sales increased 14.2% year over year, driven by continued demand across the Group’s Philippine and international businesses and growth across its global brand portfolio.
- Strong North American performance: Jollibee North America system-wide sales grew 21.6%, while same-store sales increased 8.6%; Smashburger same-store sales grew 7.0%, underscoring momentum in one of the Group’s key international growth markets.
- Canada expansion strengthens the North America growth platform: New plans add 26 locations in British Columbia and Edmonton to Jollibee’s existing 28-restaurant Canadian network, positioning the brand to nearly double its Canada footprint over the next five years.
- Expanding global store network: The Jollibee Group’s store network increased 6.4% year over year to 10,767 stores across 33 countries, with franchised stores accounting for approximately 70% of gross new openings.
METRO MANILA, PHILIPPINES – Media OutRech Newswire – 8 September 2026 – Jollibee Foods Corporation (PSE: JFC) and its subsidiaries (the “Jollibee Group”), today reported record second-quarter earnings for 2026, reflecting a clear margin recovery from first-quarter cost pressures, the resilience of its global brand portfolio, continued healthy consumer demand, and positive system-wide sales growth across all regions.
The Jollibee Group’s system-wide sales increased 14.2% year-on-year, driven by continued demand across its Philippine and international businesses and growth across its global brand portfolio. The Group recorded Php3.4 billion in net income attributable to equity holders of the parent company, its highest quarterly NIAT on record.
North America continued to deliver strong performance during the quarter. Jollibee’s system-wide sales increased 21.6%, while same-store sales grew 8.6%. Smashburger also delivered 7.0% same-store sales growth, reflecting continued momentum across the Group’s North American portfolio.
Canada is emerging as an important growth market for Jollibee, with planned expansion in British Columbia and Edmonton set to strengthen the brand’s national footprint. Together, these plans would add 26 restaurants — 16 in British Columbia and 10 in Edmonton — to Jollibee’s existing network of 28 restaurants in Canada.
If completed as planned, these commitments would nearly double Jollibee’s Canadian network over the next five years, while laying the foundation for further expansion across the country.
The Jollibee Group’s global store network increased 6.4% year-on-year to 10,767 stores across 33 countries,. Of these, 501 stores were across North America at the end of the second quarter, spanning Jollibee, Chowking, Red Ribbon, Smashburger, Milksha, The Coffee Bean & Tea Leaf, and Tim Ho Wan.
“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.
“The breadth of our growth reflects the relevance of our brands, the strength of our value offerings, and the trust that customers continue to place in us. As we expand our presence in key markets and build a stronger global platform, we remain focused on serving more customers, strengthening our brands, and creating sustainable long-term value for our stakeholders.”
Second Quarter Performance: Sequential Recovery and Sustained Growth
The Jollibee Group’s second-quarter performance is best understood by first looking at the sequential recovery from Q1 cost pressures, followed by the year-on-year growth that demonstrates the continued strength of the business.
The discussion below first presents the quarter-on-quarter improvement in revenues, margins, and earnings, then places that recovery in the context of the Jollibee Group’s sustained year-on-year growth across its global portfolio.
Sequential Recovery: Quarter-on-Quarter Profitability Improvement
Quarter-on-quarter comparisons demonstrate the strength of the Jollibee Group’s recovery from the first quarter. Consolidated revenues increased by 12.2% versus Q1 2026, supporting a 25.3% increase in gross profit, a 56.1% increase in operating income, and a 130.5% increase in NIAT.
The margin recovery was also visible within the quarter. Gross profit margin improved to 18.5% in Q2 from 16.5% in Q1 and strengthened from 17.3% in April to 19.0% in June, indicating that the Group’s pricing and recovery actions are gaining traction even as the operating environment remains affected by elevated commodity, logistics, and other supply chain-related costs.
Operating leverage improved as the quarter progressed. Operating income margin increased to 7.2% in Q2 from 5.2% in Q1, while NIAT margin nearly doubled to 4.0% from 1.9%. By June, operating income margin had reached 9.1% and NIAT margin had reached 6.2%, providing a stronger exit rate entering the second half of 2026.
Reported profitability for the quarter was affected by Php239.0 million (approx. US$3.9 million) in transition-related costs, covering store closure and lease termination costs associated with the ongoing turnaround of Yonghe King and Smashburger toward predominantly franchised business models. These costs are aligned with the Jollibee Group’s continuing efforts to strengthen the long-term quality, scalability, and profitability of its portfolio.
Commenting on the Group’s sequential margin recovery and second-quarter earnings momentum, Richard Shin, Chief Financial and Risk Officer of JFC and Chief Executive Officer of Jollibee Group International Business, said:
“The second quarter represents an important step forward in our earnings momentum. Pricing actions implemented beginning in April, together with productivity, sourcing, and cost discipline initiatives, contributed to the recovery in gross profit margins and supported stronger operating income and NIAT margins.
“Sequentially, gross profit increased by 25.3%, operating income rose by 56.1%, and NIAT more than doubled versus Q1 2026, reflecting both cost recovery and stronger operating leverage from sustained topline growth.
“These portfolio actions involve near-term transition costs but are expected to support stronger long-term profitability, scalability, and overall portfolio quality.
“While the operating environment remains dynamic, our second-quarter performance demonstrates our ability to respond decisively, improve profitability, and continue investing for long-term growth. We enter the second half with stronger momentum, a continued focus on sustaining margin recovery, and continued confidence in the long-term growth prospects.”
Sustained Growth: Year-on-Year Business Momentum
On a year-on-year basis, consolidated revenues increased 10.7%, while system-wide sales grew 14.2%, underscoring sustained demand across the Jollibee Group’s global brand portfolio.
| Financial Data |
Quarter 2 (Unaudited) |
|
1H 2026 (Unaudited) |
|
| 2026 |
2025 |
% Change |
2026 |
2025 |
% Change |
| System Wide Sales |
130,809 (~$2,132) |
114,542 (~$1,867) |
14.2 |
244,673 (~$3,987) |
217,738 (~$3,549) |
12.4 |
| Revenues |
85,908 (~$1,400) |
77,626 (~$1,265) |
10.7 |
162,455 (~$2,648) |
147,852 (~$2,410) |
9.9 |
| Operating Income |
6,165 (~$100) |
6,058 (~$99) |
1.8 |
10,112 (~$165) |
10,882 (~$177) |
(7.1) |
| EBITDA |
11,995 (~$195) |
11,174 (~$182) |
7.3 |
21,303 (~$347) |
20,964 (~$342) |
1.6 |
| Net Income |
3,519 (~$57) |
3,416 (~$56) |
3.0 |
4,928 (~$80) |
5,914 (~$96) |
(16.7) |
| Net Income Attributable to Equity Holders of the Parent Company |
3,395 (~$55) |
3,211 (~$52) |
5.7 |
4,867 (~$79) |
5,617 (~$92) |
(13.3) |
| Earnings Per Share – Basic |
2.949 (~$0.048) |
2.788 (~$0.045) |
5.8 |
4.183 (~$0.068) |
4.857 (~$0.079) |
(13.9) |
| Earnings Per Share – Diluted |
2.955 (~$0.048) |
2.780 (~$0.045) |
6.3 |
4.191 (~$0.068) |
4.843 (~$0.079) |
(13.5) |
Note: (1) Amounts in Million Pesos except for per-share data
(2) Systemwide sales (SWS) is a management metric and is not part of the audited financial statements
(3) US$ amounts are presented for informational purposes using the exchange rate of PHP 61.36/US$1, applied consistently to comparative periods for comparability.
North America continued to deliver strong performance during the quarter. Jollibee’s North American system-wide sales increased 21.6%, while same-store sales grew 8.6%. Smashburger also delivered 7.0% same-store sales growth, reflecting continued momentum across the Group’s North American portfolio.
The International segment expanded by 25.4% in system-wide sales, led by Highlands Coffee (+46.7%), Jolli-K’s Compose Coffee (+39.7%), Europe, Middle East, Asia, and Australia (EMEAA) brands Jollibee and Chowking, (+25.3%), Tim Ho Wan (+23.0%), Jollibee NA (+21.6%), and Milksha (+12.4%). Shabu All Day, the Jollibee Group’s newest Korea-based brand under Jolli-K, contributed 5% to the International business’ SWS.
The Philippine business also delivered continued growth, with system-wide sales increasing 5.7%, supported by strong contributions from Mang Inasal (+10.7%) and Jollibee (+6.6%).
SSSG for the quarter grew 2.7%, with the Philippine business up 1.3% and the international business up 4.4%. In the Philippines, SSSG growth was mainly supported by higher spend per transaction. While traffic was affected by a strong prior-year base that benefited from election-related spending, trends improved over the course of the quarter, reaching broadly flat levels in June.
Several international markets delivered positive performance during the quarter, particularly North America, where Jollibee NA grew 8.6% and Smashburger grew 7.0%; Vietnam, where Jollibee grew 17.9% and Highlands Coffee grew 11.5%; and Korea, where Compose Coffee grew 12.4%.
Operating income increased year-on-year, supported by higher revenues and the initial benefits of pricing and margin recovery actions implemented during the quarter. NIAT rose by 5.7% to Php3.4 billion (approx. US$55 million), the highest quarterly NIAT on record, while earnings per share increased by 5.8% to Php2.949 (approx. US$0.048), reflecting the Group’s stronger bottom-line performance.
EBITDA increased by 7.3% year-on-year, driven by the Philippine business, where EBITDA grew by 12.8%, partly offset by a 0.4% decline in International EBITDA. The decline in International EBITDA was impacted by store closure and lease termination costs related to Smashburger and Yonghe King.
JFC increased its global store network by 6.4% year-on-year to 10,767 stores. This reflected 461 gross new store openings and the addition of 172 stores from the acquisition of Shabu All Day, partly offset by 207 store closures during the first half.
Of the gross new store openings, 323 stores, or approximately 70%, were franchised, keeping the Group’s franchised ratio at 70%. The total store network comprised 3,516 stores in the Philippines and 7,251 stores internationally, including 602 in China, 340 in North America, 455 in EMEAA, 1,062 under Highlands Coffee mainly in Vietnam, 1,097 under CBTL, 358 under Milksha, 3,098 under Compose Coffee, 156 under Shabu All Day, and 83 under Tim Ho Wan.
Full Year 2026 Guidance
For full year 2026, the Jollibee Group expects its underlying sales momentum to remain resilient. It is maintaining its guidance for system-wide sales growth of 8%-12% and store network growth of 5%-10%, supported by continued demand across key markets and disciplined execution across its global brand portfolio.
At the same time, the Jollibee Group is updating certain operating assumptions. Full year same-store sales growth guidance is being revised to 3%-4%, while the gross new store opening target is being updated to 1,000-1,100 stores. Despite the lower gross opening target, the Jollibee Group continues to expect overall store network growth to remain in line with its previous guidance, reflecting ongoing portfolio optimization and the timing of store openings and closures.
Capital expenditures are now expected to be in the range of Php13.0 billion (approx. US$212 million) to Php15.0 billion (approx. US$244 million). Operating income growth guidance is revised to 10%-15%, reflecting the updated same-store sales assumptions, the revised expansion assumptions, continued transition-related costs for China and Smashburger, and the still-dynamic cost environment.
The Jollibee Group’s confidence is supported by growth catalysts that provide a stronger foundation for sustained performance over the medium term, including continued international expansion, a growing base in key markets such as North America, and ongoing portfolio optimization initiatives. Recent developments in Canada, Vietnam, and China illustrate the Group’s ability to pursue high-quality growth across markets with different growth profiles and strategic priorities.
Jollibee Vietnam has emerged as one of the Jollibee Group’s strongest international growth engines, leading the category in sales and ranked as the No. 1 quick-service restaurant brand in Vietnam by Euromonitor International in its Consumer Foodservice 2026 study. In Q2 2026, Jollibee achieved system-wide sales growth of 47.6% and same-store sales growth of 17.9%, supported by disciplined execution and continued network expansion, with 19 new stores opened in the first half of the year. Attractive unit economics, with store payback of less than four years, reinforce confidence in the sustainability of future growth. Its strong market position, operating performance, and customer engagement were further recognized through awards for Best Companies to Work for in Asia 2026 and Best Social & Commerce Integration in Vietnam.
In China, the franchise ratio has increased significantly to 62% today from 14% in 2016, reflecting continued progress toward a more scalable and asset-light operating model. Its largest brand, Yonghe King, has achieved a franchise ratio of 65% and is targeting 70% by the end of 2026, with a medium-term target of up to 95%. Yonghe King’s new stores typically achieve payback in approximately two years.
The Jollibee Group remains focused on pursuing high-quality growth opportunities that generate attractive returns on invested capital, with disciplined capital allocation and capital-light expansion continuing to guide its growth strategy.
Other Developments
Recognition for Global Brand Influence
The Jollibee Group was named to TIME’s 100 Most Influential Companies of 2026, where it was recognized as a “fried chicken phenom.” The Company was also included in the inaugural TIME100 Companies: Industry Leaders list as one of the Top 10 companies in the Food & Drink category.
In July, the Jollibee Group was included in Fortune’s Southeast Asia 500 list, reinforcing its position among the region’s leading companies. Jollibee was also recognized by USA Today as having the Best Fast Food Fried Chicken, further strengthening the brand’s global consumer relevance and reinforcing its leadership in great-tasting food.
Sustainability and ESG Progress
The Jollibee Group continued to advance its sustainability agenda and strengthen its ESG initiatives. For the second consecutive year, the Company received the 3G Excellence in Sustainability Reporting Award 2026, recognizing its commitment to transparent and meaningful sustainability disclosures.
The Company’s Danao commissary was also awarded LEED Gold certification under LEED v4.1 ID+C: Commercial Interiors, becoming the first manufacturing facility in the Philippines to achieve LEED certification for interior design and construction. The recognition reflects the Jollibee Group’s ongoing investment in more sustainable and future-ready operations.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Forward-Looking Statement Disclaimer
The foregoing disclosure contains forward-looking statements that are based on certain assumptions of Management and are subject to risks, opportunities, and unforeseen events. Actual results could differ materially from those contemplated in the relevant forward-looking statement, and JFC gives no assurance that such forward-looking statements will prove to be correct, or that such intentions will not change. This press release discloses important factors that could cause actual results to differ materially from JFC’s expectations. All subsequent written and oral forward-looking statements attributable to JFC, or any person acting on behalf of JFC, are expressly qualified in their entirety by the above cautionary statements.
Hashtag: #JollibeeGroup
The issuer is solely responsible for the content of this announcement.
About Jollibee Group
Jollibee Foods Corporation (PSE: JFC) (the “Company”) is one of the world’s fastest-growing restaurant companies, driven by its purpose of spreading joy through superior taste. It manages and operates a portfolio that includes 20 brands (the “Jollibee Group”) with affiliates and franchisees operating over 10,700 stores and cafés across 33 countries.
The Jollibee Group’s portfolio includes nine (9) wholly-owned brands (Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Yonghe King, Hong Zhuang Yuan, Smashburger and Tim Ho Wan), five (5) franchised brands (Burger King, Panda Express, Yoshinoya, Common Man Coffee Roasters, and Tiong Bahru Bakery in the Philippines), and ownership stakes in other key brands like The Coffee Bean and Tea Leaf (80%), Compose Coffee (70%), Shabu All Day (70%), bubble tea brand Milksha (51%), and SuperFoods Group that operates Highlands Coffee (60%) The Company also has membership interests in Tortazo, LLC, along with Chef Rick Bayless, for Tortazo in the U.S., and in Botrista, a leader in beverage technology.
The Jollibee Group’s global sustainability agenda, Joy for Tomorrow, underscores its commitment to sustainable business practices across food safety, employee welfare, community support, good governance, and environmental responsibility, among others. These focus areas are aligned with the United Nations Sustainable Development Goals (UN SDGs).
The Company has been recognized as the Philippines’ Most Admired Company by the Asian Wall Street Journal, named one of Asia’s Fab 50 Companies, and listed among Forbes’ World’s Best Employers and Top Female-Friendly Companies. The Company is also a five-time Gallup Exceptional Workplace Award recipient and featured in TIME’s World’s Best Companies and Fortune’s Southeast Asia 500 List.
http://www.fev-consulting.com
https://www.linkedin.com/company/wearetpgroup/home/
https://x.com/wearetpgroup
https://www.facebook.com/wearetpgroup/
https://www.instagram.com/mayfeyr_official/?hl=en
