Q2 2026 Jollibee Foods Corporation Earnings Call Transcript
Key Points
- Record-high system-wide sales and earnings in Q2 2026, with revenue up 10.7% and net income up 5.7% year-on-year.
- Gross profit margin recovered from 16.5% in Q1 to 19% in May and June, driven by strategic SKU-level price increases that held volumes.
- Strong international growth, with Jollibee North America same-store sales up 8.6% and Vietnam system-wide sales surging 47.6%.
- Asset-light expansion gaining traction, with 77% of new store openings in the first half being franchised, including 100 committed stores in North America.
- Compose Coffee expansion momentum, with 145 new openings in H1 and entry into Taiwan and the Philippines, supported by improved franchisee margins and a reblended coffee that cut annualized costs by 2 billion Korean won.
- Q2 results included a non-recurring 240 million peso restructuring charge from Smashburger and Yonghe King conversions, which reduced adjusted net income growth to 14%.
- Inflationary pressures persist, with beef prices in high double digits and coffee bean prices up about 25% year-on-year, requiring four more price increases in H2.
- Smashburger remains a drag, with losses improving only 10.4% (excluding restructuring) and same-store sales growth of 7% still below the cost of capital.
- Compose Coffee's EBITDA declined year-on-year due to higher bean costs, increased marketing spend, and G&A investments, with profitability expected to only reach parity by year-end.
- China's Yonghe King faces a challenging environment, with system-wide sales growth slowing to double digits after the 2025 aggregator war, and the brand still in a turnaround phase.
Good afternoon everyone and welcome to Jollibee Group's second quarter and first half 2026 results briefing.
Thank you for taking the time to join us today. To begin, let me turn the floor over to Cosette Palomar, Head of Investor Relations, for the opening remarks and forward-looking statement reminder. Cosette, please go ahead.
Thank you, Tris. Good day everyone and thanks for joining us today. We appreciate your continued interest in the Jollibee Group.
We'd also like to welcome those joining us for the first time. Glad to have you with us.
Our Chief Financial and Risk Officer, Mr. Richard Shin, will walk us through the second quarter and first half 2026 results. And after his presentation, Tris Lopez will moderate the Q&A.
Before we begin, let me just remind everyone that today's presentation and discussion may include forward-looking statements that are based on certain assumptions of management. And are subject to risks and opportunities or
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