Jollibee Group Reports Record Q2 Net Income, Fueled by Margin Recovery and North American Growth

Jollibee Foods Corporation (PSE: JFC) announced record second-quarter results for 2026, with net income attributable to equity holders of the parent company reaching Php3.4 billion (approximately US$55 million), a 5.7% increase year-over-year and the highest quarterly figure on record. The results underscore a clear margin recovery from first-quarter cost pressures, driven by controlled pricing actions and improved operating leverage. System-wide sales grew 14.2% year-on-year, reflecting sustained demand across the company's Philippine and international operations.

The strong performance was notably supported by North America, where Jollibee's system-wide sales surged 21.6% and same-store sales grew 8.6%. Smashburger also delivered 7.0% same-store sales growth, indicating broad-based momentum in the region. Canada is emerging as a key growth market, with plans to add 26 new locations in British Columbia and Edmonton, nearly doubling Jollibee's Canadian network over the next five years. This expansion underscores the company's commitment to strengthening its North American footprint.

Sequential recovery from the first quarter was evident: consolidated revenues increased 12.2% versus Q1 2026, gross profit rose 25.3%, operating income surged 56.1%, and net income attributable to equity holders more than doubled. 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 reached 7.2% in Q2, up from 5.2% in Q1, and by June, it had climbed to 9.1%. Net income margin similarly expanded, reaching 6.2% in June.

Richard Shin, Chief Financial and Risk Officer, attributed the recovery to pricing actions implemented in April, along with productivity, sourcing, and cost discipline initiatives. He noted that these efforts contributed to improved margins and stronger operating leverage. The quarter also included Php239.0 million in transition-related costs associated with store closures and lease terminations for Yonghe King and Smashburger, as the company shifts toward predominantly franchised models.

Year-on-year, consolidated revenues increased 10.7%, while EBITDA grew 7.3%. The Philippine business delivered steady growth, with system-wide sales up 5.7% and same-store sales up 1.3%, supported by higher spend per transaction. International operations expanded robustly, with system-wide sales up 25.4%, led by Highlands Coffee (+46.7%), Compose Coffee (+39.7%), EMEAA brands (+25.3%), Tim Ho Wan (+23.0%), Jollibee North America (+21.6%), and Milksha (+12.4%).

The company's global store network grew 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 alone now hosts 501 stores under various brands. For full-year 2026, the company maintains its guidance for system-wide sales growth of 8%-12% and store network growth of 5%-10%, while revising same-store sales growth guidance to 3%-4% and gross new store openings to 1,000-1,100 stores. Capital expenditures are expected to range from Php13.0 billion to Php15.0 billion, and operating income growth guidance is set at 10%-15%.

Jollibee Vietnam has emerged as a standout performer, achieving 47.6% system-wide sales growth and 17.9% same-store sales growth in Q2, with 19 new stores opened in the first half. Recognized as the No. 1 QSR brand in Vietnam by Euromonitor, its success highlights the company's ability to execute high-quality growth in key markets. In China, the franchise ratio for Yonghe King has risen to 65%, with a target of 70% by year-end, reflecting progress toward an asset-light model.

The Jollibee Group's achievements extend beyond financials. It was named to TIME's 100 Most Influential Companies of 2026 and included in Fortune's Southeast Asia 500 list. Jollibee also received USA Today's recognition for Best Fast Food Fried Chicken. Sustainability efforts continued with the 3G Excellence in Sustainability Reporting Award and LEED Gold certification for its Danao commissary, the first manufacturing facility in the Philippines to achieve this.