Jollibee Foods Corporation (PSE: JFC) announced record second-quarter 2026 results, with net income attributable to equity holders of the parent company rising 5.7% year-over-year to Php3.4 billion (approximately US$55 million), marking the highest quarterly net income in the company's history. The record earnings were supported by margin recovery from first-quarter cost pressures and improved operating leverage, according to the company's financial report released on September 8, 2026.
System-wide sales increased 14.2% year-over-year, driven by sustained demand across the company's Philippine and international businesses, as well as growth across its global brand portfolio. Consolidated revenues grew 10.7% year-on-year, reflecting continued consumer demand and effective pricing strategies. The company's global store network expanded 6.4% 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, another brand in the company's portfolio, delivered 7.0% same-store sales growth. The strong performance in North America underpins the company's strategic expansion in Canada, where Jollibee plans to add 26 new restaurants across British Columbia and Edmonton, building on its existing 28-restaurant network. These additions would nearly double the brand's Canadian footprint over the next five years, positioning Canada as a significant growth market.
"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 company's financial performance showed sequential improvement from the first quarter, with consolidated revenues up 12.2%, gross profit up 25.3%, operating income up 56.1%, and net income attributable to equity holders more than doubling. 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 implemented in April are gaining traction despite elevated commodity and supply chain costs. 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, commented: "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."
Reported profitability for the quarter included Php239.0 million (approximately US$3.9 million) in transition-related costs, covering store closures and lease terminations associated with the ongoing turnaround of Yonghe King and Smashburger toward predominantly franchised business models. These costs are expected to support stronger long-term profitability and portfolio quality.
International segment system-wide sales expanded by 25.4%, led by Highlands Coffee (+46.7%), Jolli-K's Compose Coffee (+39.7%), EMEAA brands Jollibee and Chowking (+25.3%), Tim Ho Wan (+23.0%), Jollibee NA (+21.6%), and Milksha (+12.4%). The Philippine business delivered 5.7% system-wide sales growth, supported by Mang Inasal (+10.7%) and Jollibee (+6.6%). Same-store sales growth for the group was 2.7%, with the Philippine business up 1.3% and the international business up 4.4%.
Jollibee Vietnam has 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, and ranked as the No. 1 quick-service restaurant brand in Vietnam by Euromonitor International. In China, the franchise ratio has increased to 62% from 14% in 2016, reflecting progress toward a more scalable and asset-light operating model.
For full year 2026, the company maintains its guidance for system-wide sales growth of 8%-12% and store network growth of 5%-10%, but revised same-store sales growth guidance to 3%-4% and gross new store openings to 1,000-1,100 stores. Operating income growth guidance is revised to 10%-15%, reflecting updated assumptions and ongoing transition costs.
The Jollibee Group was named to TIME's 100 Most Influential Companies of 2026 and included in Fortune's Southeast Asia 500 list. Jollibee was also recognized by USA Today as having the Best Fast Food Fried Chicken. The company continues to advance its sustainability agenda, receiving the 3G Excellence in Sustainability Reporting Award for the second consecutive year and achieving LEED Gold certification for its Danao commissary, the first manufacturing facility in the Philippines to receive such certification.
