Jollibee Foods Corporation (PSE: JFC) and its subsidiaries, collectively known as the Jollibee Group, reported record second-quarter earnings for 2026, with net income attributable to equity holders of the parent company rising 5.7% year-over-year to Php3.4 billion (approximately US$55 million). This marks the company's highest quarterly net income on record, supported by margin recovery from first-quarter cost pressures and improved operating leverage.
The company also announced significant expansion plans for Jollibee Canada, aiming to nearly double its network over the next five years. These plans include adding 26 new locations across British Columbia and Edmonton, which will complement the existing 28-restaurant Canadian network. This strategic move underscores Canada's emergence as a key growth market for Jollibee and strengthens the brand's North American presence.
System-wide sales for the Jollibee Group increased 14.2% year-over-year, driven by robust demand across its Philippine and international businesses. North America delivered particularly strong performance, with Jollibee's system-wide sales growing 21.6% and same-store sales increasing 8.6%. Smashburger also contributed to the momentum with 7.0% same-store sales growth.
The company's global store network expanded by 6.4% year-over-year to 10,767 stores across 33 countries, with franchised stores accounting for approximately 70% of gross new openings. This expansion reflects the group's commitment to capital-light growth and portfolio optimization.
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."
The company's sequential recovery from Q1 cost pressures was notable. Quarter-over-quarter, consolidated revenues increased 12.2%, gross profit rose 25.3%, operating income surged 56.1%, and net income attributable to equity holders more than doubled, up 130.5%. Gross profit margin improved to 18.5% from 16.5% in Q1, and operating income margin increased to 7.2% from 5.2%. By June, operating income margin had reached 9.1%, and net income margin had climbed to 6.2%.
Richard Shin, Chief Financial and Risk Officer of JFC and Chief Executive Officer of Jollibee Group International Business, highlighted the impact of strategic pricing and cost initiatives: "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 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 models. These costs are part of the group's strategy to enhance long-term profitability and scalability.
Looking ahead, the Jollibee Group maintains its full-year guidance for system-wide sales growth of 8%-12% and store network growth of 5%-10%. Same-store sales growth guidance has been revised to 3%-4%, while the gross new store opening target is now 1,000-1,100 stores. Capital expenditures are expected to be between Php13.0 billion and Php15.0 billion.
The company's confidence is supported by strong growth catalysts, including continued international expansion and portfolio optimization. Jollibee Vietnam has emerged as a top performer, 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% from 14% in 2016, reflecting progress toward a more asset-light model.
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