The Jollibee Group reported record second-quarter net income attributable to equity holders of the parent company of 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, driven by margin recovery from first-quarter cost pressures and improved operating leverage. The company also announced plans to significantly expand its Jollibee brand in Canada, adding 26 new locations across British Columbia and Edmonton, which would nearly double its Canadian network over the next five years.
System-wide sales grew 14.2% year over year, fueled by robust demand across the company's Philippine and international businesses. North America was a standout performer, with Jollibee North America achieving system-wide sales growth of 21.6% and same-store sales growth of 8.6%. Smashburger, part of the group's portfolio, also delivered 7.0% same-store sales growth, underscoring momentum in one of the group's key international growth markets.
The company's global store network expanded to 10,767 stores across 33 countries, a 6.4% increase year over year. Franchised stores accounted for approximately 70% of gross new openings, reflecting the group's focus on asset-light expansion. The Canadian expansion plan, which includes 16 restaurants in British Columbia and 10 in Edmonton, builds on Jollibee's existing 28-restaurant presence in the country, positioning the brand for a strengthened national footprint.
Ernesto Tanmantiong, Global Chief Executive Officer of JFC, said, "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 sequential recovery from the first quarter was notable. Consolidated revenues increased 12.2% versus Q1 2026, with gross profit up 25.3%, operating income up 56.1%, and net income attributable to equity holders of the parent company up 130.5%. Gross profit margin improved to 18.5% in Q2 from 16.5% in Q1, strengthening from 17.3% in April to 19.0% in June. Operating income margin rose to 7.2% from 5.2%, and net income margin nearly doubled to 4.0% from 1.9%. By June, operating income margin reached 9.1% and net income margin hit 6.2%.
The margin recovery was supported by pricing actions implemented 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, 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."
Reported profitability was affected by Php239.0 million (approximately US$3.9 million) in transition-related costs tied to store closures and lease terminations associated with the turnaround of Yonghe King and Smashburger toward predominantly franchised business models. These costs are part of efforts to strengthen long-term portfolio quality and profitability.
On a year-over-year basis, 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 strong performances from Highlands Coffee (+46.7%), Jolli-K's Compose Coffee (+39.7%), and EMEAA brands Jollibee and Chowking (+25.3%). The Philippine business also delivered growth, with system-wide sales up 5.7%, supported by Mang Inasal (+10.7%) and Jollibee (+6.6%).
Jollibee Vietnam emerged as a key growth engine, with system-wide sales growth of 47.6% and same-store sales growth of 17.9% in Q2, and was ranked the No. 1 quick-service restaurant brand in Vietnam by Euromonitor International in its Consumer Foodservice 2026 study. In China, the franchise ratio increased to 62%, up from 14% in 2016, with Yonghe King targeting a 70% franchise ratio by the end of 2026.
For full year 2026, the Jollibee Group maintained 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 updated its gross new store opening target to 1,000-1,100 stores. Capital expenditures are expected to be between Php13.0 billion and Php15.0 billion, and operating income growth guidance was revised to 10%-15%.
The company also received recognition as one of TIME's 100 Most Influential Companies of 2026 and was included in Fortune's Southeast Asia 500 list. Jollibee was recognized by USA Today as having the Best Fast Food Fried Chicken. Additionally, the group received the 3G Excellence in Sustainability Reporting Award for the second consecutive year and achieved LEED Gold certification for its Danao commissary, the first manufacturing facility in the Philippines to do so.
