The Jollibee Group reported record second-quarter earnings 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 company's highest quarterly net income on record, supported by margin recovery from first-quarter cost pressures and improved operating leverage. System-wide sales grew 14.2% year over year, driven by sustained demand across the group's Philippine and international businesses and growth across its global brand portfolio.
The strong performance was particularly evident in North America, where Jollibee system-wide sales increased 21.6% and same-store sales grew 8.6%. Smashburger also delivered 7.0% same-store sales growth, reflecting continued momentum in one of the group's key international markets. Canada is emerging as a significant growth area, with plans to add 26 new locations in British Columbia and Edmonton, which would nearly double Jollibee's Canadian network over the next five years. This expansion underscores the group's commitment to strengthening its North American platform.
Sequential recovery from the first quarter was notable. Consolidated revenues increased 12.2% versus Q1 2026, supporting 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, and further strengthened 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%.
These improvements were driven by pricing actions implemented beginning in April, along with productivity, sourcing, and cost discipline initiatives. Richard Shin, Chief Financial and Risk Officer of JFC and Chief Executive Officer of Jollibee Group International Business, said: "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 associated with the turnaround of Yonghe King and Smashburger toward predominantly franchised business models. These costs are expected to support stronger long-term profitability and portfolio quality.
Year-on-year, consolidated revenues increased 10.7%, while system-wide sales grew 14.2%. 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 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 quarter was 2.7%, with the Philippine business up 1.3% and international up 4.4%. North America, Vietnam, and Korea showed particularly strong performance, with Jollibee NA growing 8.6%, Jollibee Vietnam growing 17.9%, and Compose Coffee growing 12.4%.
The Jollibee Group's global store network increased 6.4% year over year to 10,767 stores across 33 countries. Of these, 501 stores were in North America at the end of the second quarter, spanning Jollibee, Chowking, Red Ribbon, Smashburger, Milksha, The Coffee Bean & Tea Leaf, and Tim Ho Wan. Approximately 70% of gross new store openings were franchised, keeping the franchise ratio at 70%.
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."
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%. 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%.
Growth catalysts include continued international expansion, particularly in Canada, Vietnam, and China. Jollibee Vietnam has become a leading growth engine, with system-wide sales growth of 47.6% and same-store sales growth of 17.9% in Q2. In China, the franchise ratio has increased to 62%, with Yonghe King targeting 70% by end of 2026.
The Jollibee Group has also been recognized for its global influence, being named to TIME's 100 Most Influential Companies of 2026 and included in Fortune's Southeast Asia 500 list. Jollibee was 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.
