Jollibee Foods Corporation (PSE: JFC) and its subsidiaries (the "Jollibee Group") reported record second-quarter earnings for 2026, reflecting a clear margin recovery from first-quarter cost pressures and sustained consumer demand across its global brand portfolio. The company announced a 5.7% year-over-year increase in net income attributable to equity holders of the parent company, reaching Php3.4 billion (approximately US$55 million), its highest quarterly net income on record.
The Jollibee Group's system-wide sales increased 14.2% year-on-year, driven by continued demand across its Philippine and international businesses. Consolidated revenues rose 10.7% to Php85.9 billion. North America demonstrated strong performance, with Jollibee's system-wide sales up 21.6% and same-store sales up 8.6%. Smashburger also delivered 7.0% same-store sales growth, underscoring momentum in the group's key international growth market.
Canada is emerging as an important growth market for Jollibee, with new plans adding 26 locations in British Columbia and Edmonton to its existing 28-restaurant Canadian network. These commitments would nearly double Jollibee's Canadian footprint over the next five years, laying the foundation for further expansion across the country.
The group's global store network increased 6.4% year-on-year to 10,767 stores across 33 countries. Of these, 501 stores were in North America at the end of the second quarter, spanning brands such as Jollibee, Chowking, Red Ribbon, Smashburger, Milksha, The Coffee Bean & Tea Leaf, and Tim Ho Wan.
"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 margin recovery was visible within the quarter. Gross profit margin improved to 18.5% in Q2 from 16.5% in Q1, and strengthened from 17.3% in April to 19.0% in June, indicating that pricing and recovery actions are gaining traction. 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%.
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."
Year-on-year, operating income increased 1.8% to Php6.2 billion, while EBITDA grew 7.3% to Php12.0 billion. Net income rose 3.0% to Php3.5 billion, and earnings per share increased 5.8% to Php2.949.
The 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 North America (+21.6%), and Milksha (+12.4%). The Philippine business delivered continued growth with system-wide sales increasing 5.7%, supported by strong contributions from Mang Inasal (+10.7%) and Jollibee (+6.6%).
Same-store sales growth for the quarter grew 2.7%, with the Philippine business up 1.3% and the international business up 4.4%. In the Philippines, same-store sales growth was mainly supported by higher spend per transaction, while traffic was affected by a strong prior-year base.
During the quarter, the Jollibee Group incurred Php239.0 million in transition-related costs associated with the ongoing turnaround of Yonghe King and Smashburger toward predominantly franchised business models. These costs are aligned with the group's efforts to strengthen long-term portfolio quality and profitability.
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%. It 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 continued transition costs.
The company's confidence is supported by growth catalysts such as continued international expansion, a growing base in North America, and portfolio optimization. Jollibee Vietnam has emerged as a strong growth engine, achieving system-wide sales growth of 47.6% and same-store sales growth of 17.9% in Q2, with 19 new stores opened in the first half. In China, the franchise ratio has increased to 62%, reflecting progress toward a more scalable model.
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.
