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 achievement underscores the company's successful margin recovery from first-quarter cost pressures and solid global sales growth. System-wide sales rose 14.2% year over year, driven by robust demand across its Philippine and international operations.
The company's performance was particularly strong in North America, where Jollibee's system-wide sales grew 21.6% and same-store sales increased 8.6%. Smashburger also contributed with 7.0% same-store sales growth, reflecting continued momentum in the region. This growth is part of a broader strategy to expand internationally, with a significant focus on Canada. Jollibee announced plans to add 26 new locations in British Columbia and Edmonton, which would nearly double its existing 28-restaurant Canadian network over five years. This expansion underscores Canada's emergence as a key growth market for the brand.
Globally, the Jollibee Group's store network expanded by 6.4% year over year to 10,767 stores across 33 countries. Franchised stores accounted for approximately 70% of gross new openings, aligning with the company's asset-light expansion model. The International segment saw system-wide sales growth of 25.4%, led by brands like Highlands Coffee (+46.7%), Compose Coffee (+39.7%), and Tim Ho Wan (+23.0%). In the Philippines, system-wide sales grew 5.7%, with Mang Inasal and Jollibee contributing positively.
Sequential recovery was also notable. Quarter-on-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. Gross profit margin improved from 16.5% in Q1 to 18.5% in Q2, with a further strengthening from 17.3% in April to 19.0% in June. These improvements reflect the effectiveness of pricing actions and cost discipline initiatives implemented in April.
Ernesto Tanmantiong, Global CEO of JFC, stated, "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." He emphasized the company's focus on serving more customers and creating sustainable long-term value.
CFO Richard Shin added, "The second quarter represents an important step forward in our earnings momentum. Pricing actions, productivity, and cost discipline initiatives contributed to the recovery in gross profit margins." He noted that while the environment remains dynamic, the company is confident in its long-term growth prospects.
The Jollibee Group also highlighted its recognition as one of TIME's 100 Most Influential Companies and inclusion in Fortune's Southeast Asia 500 list. These accolades reflect the brand's growing global influence. In sustainability, the company received the 3G Excellence in Sustainability Reporting Award for the second consecutive year and achieved LEED Gold certification for its Danao commissary in the Philippines.
Looking ahead, the Jollibee Group maintains its guidance for system-wide sales growth of 8%-12% and store network growth of 5%-10% for 2026. However, it revised same-store sales growth guidance to 3%-4% and adjusted its capital expenditure range to Php13.0-15.0 billion. These adjustments account for portfolio optimization and ongoing transition costs, particularly in China and Smashburger.
The company's confidence is bolstered by growth catalysts in key markets. Jollibee Vietnam has emerged as a leading QSR brand, with system-wide sales growth of 47.6% in Q2. In China, the franchise ratio for Yonghe King has increased to 65%, targeting 70% by year-end. These developments illustrate the company's ability to pursue high-quality growth opportunities across diverse markets.
