The Jollibee Group (PSE: JFC) announced record second-quarter results for 2026, demonstrating a clear margin recovery from first-quarter cost pressures and sustained growth across its global brand portfolio. Net income attributable to equity holders of the parent company rose 5.7% year-over-year to Php3.4 billion (approximately US$55 million), marking the highest quarterly net income on record. This achievement was supported by controlled pricing actions, improved operating leverage, and strong consumer demand across all regions.
System-wide sales increased 14.2% year-on-year, driven by continued demand in the Philippines and international markets. The company's global store network expanded by 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 emerged as a key growth driver, with Jollibee's system-wide sales surging 21.6% and same-store sales growing 8.6%. Smashburger also contributed with 7.0% same-store sales growth.
Canada is becoming a pivotal market for Jollibee, with expansion plans to add 26 locations in British Columbia and Edmonton to its existing 28-restaurant network. If completed, these commitments would nearly double Jollibee's Canadian footprint over the next five years, laying the groundwork for further national expansion. This move is part of the group's strategy to strengthen its North American presence.
Sequentially, the second quarter showed significant improvement from the first. Consolidated revenues increased by 12.2% versus Q1 2026, leading to a 25.3% increase in gross profit, a 56.1% increase in operating income, and a 130.5% increase in net income attributable to equity holders. 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, indicating that pricing and recovery actions are gaining traction despite elevated 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%. By June, operating income margin had reached 9.1% and net income margin 6.2%, providing a stronger exit rate into the second half of 2026. Reported profitability was affected by Php239.0 million (approx. US$3.9 million) in transition-related costs associated with store closures and lease terminations for Yonghe King and Smashburger as part of the ongoing shift toward predominantly franchised business models.
Ernesto Tanmantiong, Global Chief Executive Officer of JFC, commented, "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."
Richard Shin, Chief Financial and Risk Officer of JFC and Chief Executive Officer of Jollibee Group International Business, added, "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."
The International segment expanded by 25.4% in system-wide sales, led by Highlands Coffee (+46.7%), Compose Coffee (+39.7%), and EMEAA brands Jollibee and Chowking (+25.3%). The Philippine business also grew, with system-wide sales increasing 5.7%, supported by Mang Inasal (+10.7%) and Jollibee (+6.6%). Same-store sales growth for the group was 2.7% overall, with international markets up 4.4%.
For the 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 the gross new store opening 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%.
Recent developments in key markets highlight the group's growth potential. Jollibee Vietnam has emerged as a strong international growth engine, achieving 47.6% system-wide sales growth and 17.9% same-store sales growth in Q2, with store payback of less than four years. In China, the franchise ratio has increased to 62% from 14% in 2016, with Yonghe King targeting 70% by end of 2026. These initiatives underscore the Jollibee Group's commitment to high-quality growth and disciplined capital allocation.
