Jollibee Foods Corporation (PSE: JFC) and its subsidiaries (the "Jollibee Group") announced record-breaking second-quarter results for 2026, showcasing a robust recovery from earlier cost pressures and setting a new high for quarterly net income. The company reported a net income attributable to equity holders of the parent company of Php3.4 billion (approximately US$55 million), a 5.7% increase year-over-year, marking its highest quarterly NIAT on record. This performance was underpinned by margin recovery from first-quarter cost pressures, improved operating leverage, and sustained global sales growth.
System-wide sales grew by 14.2% year-on-year, driven by robust demand across both Philippine and international operations. The company's global brand portfolio continued to perform strongly, with North America emerging as a key growth driver. Jollibee North America's system-wide sales surged 21.6%, while same-store sales increased 8.6%. Smashburger also contributed positively, achieving 7.0% same-store sales growth. Canada is becoming an increasingly important market, with new plans to add 26 restaurants in British Columbia and Edmonton over the next five years, nearly doubling its current network of 28 stores. This expansion underscores the company's commitment to strengthening its North American footprint.
The company's global store network expanded by 6.4% year-over-year to 10,767 stores across 33 countries. The International segment saw a 25.4% increase in system-wide sales, led by strong performances from Highlands Coffee (+46.7%), Compose Coffee (+39.7%), and EMEAA brands Jollibee and Chowking (+25.3%). In the Philippines, system-wide sales grew by 5.7%, with Mang Inasal and Jollibee contributing significantly. The company's focus on capital-light expansion is evident, with approximately 70% of gross new store openings being franchised.
Sequential recovery from Q1 was notable: consolidated revenues increased 12.2% compared to Q1 2026, leading to a 25.3% increase in gross profit, a 56.1% increase in operating income, and a 130.5% increase in NIAT. Gross profit margin improved to 18.5% in Q2 from 16.5% in Q1, and further strengthened from 17.3% in April to 19.0% in June, indicating that pricing actions and cost discipline are gaining traction. Operating income margin reached 7.2% in Q2, up from 5.2% in Q1, and NIAT margin nearly doubled to 4.0% from 1.9%. By June, operating income margin had climbed to 9.1% and NIAT margin to 6.2%, providing a strong exit rate for the second half of 2026.
Richard Shin, Chief Financial and Risk Officer of JFC and CEO of Jollibee Group International, commented on the results: "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." He also noted that reported profitability was affected by Php239.0 million in transition-related costs associated with the turnaround of Yonghe King and Smashburger toward franchised business models.
Ernesto Tanmantiong, Global CEO of JFC, added: "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. 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."
Looking ahead, the Jollibee Group maintains its guidance for system-wide sales growth of 8%-12% and store network growth of 5%-10% for the full year 2026. However, it has revised its same-store sales growth guidance to 3%-4% and its gross new store opening target to 1,000-1,100 stores, reflecting portfolio optimization and timing of openings. Capital expenditures are expected to be between Php13.0 billion and Php15.0 billion, and operating income growth guidance is revised to 10%-15%. The company's confidence is supported by strong growth catalysts, including Jollibee Vietnam's emergence as the No. 1 QSR brand in Vietnam, and the increasing franchise ratio in China to 62%, up from 14% in 2016.
The company also received notable recognitions, including being named to TIME's 100 Most Influential Companies of 2026 and Fortune's Southeast Asia 500 list. Jollibee was also recognized by USA Today for having the Best Fast Food Fried Chicken. In sustainability, the company received the 3G Excellence in Sustainability Reporting Award for the second consecutive year and achieved LEED Gold certification for its Danao commissary, a first for a manufacturing facility in the Philippines.
