Jollibee Foods Corporation (PSE: JFC) and its subsidiaries, collectively known as the Jollibee Group, reported record second-quarter earnings for 2026, reflecting a clear margin recovery from first-quarter cost pressures and sustained growth across its global brand portfolio. The company's 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 its highest quarterly net income on record.
The strong performance was underpinned by a 14.2% increase in system-wide sales, driven by continued demand in both Philippine and international markets. North America emerged as a key growth driver, with Jollibee's system-wide sales surging 21.6% and same-store sales up 8.6%. Smashburger, another brand in the group's portfolio, also delivered 7.0% same-store sales growth, underscoring the momentum in one of the group's most important international markets.
Canada is becoming a focal point for expansion. The Jollibee Group announced plans to add 26 new locations in British Columbia and Edmonton, which would nearly double its Canadian network from 28 restaurants to over 50 within five years. This expansion is part of a broader strategy to strengthen its North American presence and capitalize on growing demand for its fried chicken and other offerings.
The group'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 capital-light approach supports the group's profitability and scalability.
Sequential recovery from the first quarter was notable. Revenues increased 12.2% versus Q1 2026, while gross profit rose 25.3%, operating income jumped 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, and operating income margin reached 7.2% from 5.2%. These improvements reflect pricing actions implemented in April, along with productivity, sourcing, and cost discipline initiatives.
"The second quarter represents an important step forward in our earnings momentum," said Richard Shin, Chief Financial and Risk Officer and CEO of Jollibee Group International Business. "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 company also reported strong performance in other international markets. Vietnam's Jollibee brand achieved system-wide sales growth of 47.6% and same-store sales growth of 17.9%, while Highlands Coffee grew 11.5%. In China, the franchise ratio for Yonghe King increased to 65%, with a target of 70% by the end of 2026. These figures highlight the group's ability to execute growth strategies across diverse markets.
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%. However, it has revised its same-store sales growth guidance to 3%-4% and adjusted its capital expenditure forecast to Php13.0 billion to Php15.0 billion. Operating income growth is now expected to be 10%-15%, reflecting updated assumptions and ongoing transition costs in certain markets.
The company's recent achievements include being named to TIME's 100 Most Influential Companies of 2026 and Fortune's Southeast Asia 500 list. Its sustainability efforts were also recognized with the 3G Excellence in Sustainability Reporting Award for the second consecutive year, and its Danao commissary received LEED Gold certification, a first for a manufacturing facility in the Philippines.
With a strong second-quarter performance, the Jollibee Group is well-positioned for continued growth, driven by its global brand portfolio, disciplined execution, and focus on creating sustainable long-term value for stakeholders.
