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. This marks the highest quarterly net income in the company's history, supported by a margin recovery from first-quarter cost pressures and improved operating leverage.
The company's system-wide sales grew 14.2% year-over-year, driven by sustained demand across its Philippine and international businesses. Consolidated revenues increased 10.7% to Php85.9 billion. The strong performance was bolstered by robust growth in North America, where Jollibee system-wide sales surged 21.6% and same-store sales grew 8.6%. Smashburger also contributed with 7.0% same-store sales growth, underscoring momentum in the region.
In a strategic move to strengthen its North American presence, Jollibee announced plans to expand its Canadian network significantly. The company will add 26 new locations in British Columbia and Edmonton, bringing its Canadian total to 54 restaurants. This expansion is expected to nearly double Jollibee's footprint in Canada over the next five years, laying the groundwork for further growth across the country.
"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. He added, "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 global store network expanded 6.4% year-over-year to 10,767 stores across 33 countries. Franchised stores accounted for approximately 70% of gross new openings, aligning with the company's capital-light expansion strategy.
Sequential recovery from the first quarter was notable. Quarter-on-quarter, consolidated revenues increased 12.2%, gross profit rose 25.3%, operating income grew 56.1%, and net income attributable to equity holders more than doubled, up 130.5%. 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% from 5.2%, and 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 was affected by Php239.0 million (approximately US$3.9 million) in transition-related costs, primarily store closure and lease termination costs associated with the ongoing turnaround of Yonghe King and Smashburger toward predominantly franchised business models. These costs are part of the company's efforts to strengthen long-term portfolio quality and profitability.
The company's international segment expanded by 25.4% in system-wide sales, led by Highlands Coffee (+46.7%), 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 also delivered growth, with system-wide sales increasing 5.7%, supported by Mang Inasal (+10.7%) and Jollibee (+6.6%).
Same-store sales growth (SSSG) for the quarter was 2.7%, with Philippine SSSG up 1.3% and international SSSG up 4.4%. Several international markets performed well, including North America, Vietnam, and Korea.
Jollibee Vietnam emerged as a standout performer, 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 in Vietnam by Euromonitor International in its Consumer Foodservice 2026 study. In China, the franchise ratio increased to 62% from 14% in 2016, reflecting progress toward a more scalable and asset-light model.
For full year 2026, the Jollibee Group maintains its guidance for system-wide sales growth of 8%-12% and store network growth of 5%-10%. However, same-store sales growth guidance is revised to 3%-4%, and gross new store openings target is updated to 1,000-1,100 stores. Capital expenditures are expected to be between Php13.0 billion and Php15.0 billion, with operating income growth guidance revised to 10%-15%.
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.
Sustainability efforts continued, with the company 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.
