Second Quarter Momentum Delivers Strong Profit for Jollibee
Homegrown fast-food giant Jollibee Foods Corp. (JFC) reported significantly higher profit and revenue during the April-to-June period, resulting in a near break-even net income of P5.62 billion for the first half of the year, only slightly behind the P5.66 billion recorded a year ago.
Jollibee Group CEO Ernesto Tanmantiong stated that the second quarter results reflected a powerful acceleration in both revenue and profit growth compared to the first quarter, underscoring continued business momentum and vast improvements in operational execution across the group.
The company’s net income attributable to equity holders of the parent company climbed by 5.6 percent to P3.21 billion in the second quarter, successfully reversing the decline that was observed during the first three months of the year.
Consolidated revenues saw a robust 15.5 percent increase, reaching P77.63 billion, which in turn fueled a substantial 19.1 percent growth in operating income to P6.04 billion.
This impressive performance was largely attributed to the exceptional strength of the rapidly expanding coffee and tea segment, alongside sustained, high-level contributions from both the core Philippine business and international operations across all brands.
System-wide sales (SWS) reached a record P114.5 billion in the quarter, achieving a 19.6 percent increase from the previous year.
The domestic Philippine business alone posted an 11.3 percent increase, led by flagship brands Jollibee, which saw sales climb by 13.3 percent, and Mang Inasal, with a sales increase of 13.9 percent.
International Expansion and Coffee Segment Drive Growth
The Jollibee Group’s international sales posted an outstanding performance, driven by rapid growth in the coffee and tea segment, proving that the company’s global expansion strategy and diversification efforts are delivering powerful financial returns and market share gains.
International sales for the quarter grew by a remarkable 32.6 percent, with growth overwhelmingly fueled by a massive 68.8-percent surge within the coffee and tea segment.
Compose Coffee, a major player in this segment, accounted for more than half of this spectacular growth, contributing 56.6 percent of the increase.
Beyond the coffee segment, the general Jollibee International segment also posted a strong 15.4 percent increase in System-wide Sales, with Jollibee Vietnam notably growing its SWS by 35 percent year-on-year.
Same-store sales growth (SSSG) for the April to June period reached a healthy 5.5 percent globally.
In the Philippines, SSSG was up 6.4 percent, with top performers including Mang Inasal (up 12 percent), Red Ribbon (up 8.4 percent), Yoshinoya (up 7.9 percent), Panda Express (up 7.8 percent), and the flagship Jollibee brand (up 7.0 percent).
International SSSG also improved by 4.1 percent, showcasing broad strength across different regions and brands, including North America Asian brands (up 7.8 percent) and the Europe, Middle East, Asia, and Australia (EMEAA) region (up 7.7 percent).
Coffee and tea brands like The Coffee Bean & Tea Leaf (up 4.9 percent), Milksha (up 4.7 percent), and Highlands Coffee (up 4.4 percent) all contributed to the upward trajectory, alongside early signs of recovery in China operations (up 3.9 percent).
Strategic Network Growth and Long-Term Outlook
Through disciplined cost optimization, strategic portfolio innovation, and a shift toward a capital-light franchising model, the Jollibee Group has significantly expanded its global network, maintaining a positive long-term financial guidance for the full year and earning international acclaim.
Jollibee Group Chief Financial and Risk Officer Richard Shin credited the enhanced performance to “Disciplined execution of both our cost optimization initiatives and portfolio innovation efforts,” which he stated helped to stimulate both profit and growth.
He highlighted that international operations are now making a “meaningful contribution” to the group’s overall financial results, noting the particular success of Jollibee Vietnam, which now holds the number one spot in market share, revenue, and net income, despite having only the third-largest store network size.
The coffee and tea segment’s strong growth trajectory is expected to continue, with Compose Coffee projected to surpass 3,000 stores globally and deliver an impressive 36-percent return on invested capital this year.
Other key growth drivers include operational improvements and franchising efforts at Smashburger, which Shin confirmed has “a clearly defined path toward improving financial performance,” and recovering signs in the China operations.
The company’s strategic shift toward a franchising-heavy, capital-light model has progressed significantly, with 69 percent of its stores now operated by franchisees.
This strategy has fueled a massive 45.5 percent expansion of its global store network, which now totals 10,119 outlets as of June.
This network includes 3,424 stores in the Philippines and 6,695 overseas, a testament to the brand’s successful global reach.
The flagship Chickenjoy product continues to garner international recognition, securing the top spot on USA Today’s 10Best Fast Food Fried Chicken list for the second consecutive year.
The company remains confident in its full-year guidance, citing a balanced capital allocation strategy focused on high-performing domestic operations, expanding international businesses, and scaling up its coffee and tea brands.
Following the strong results, Jollibee shares rose by P5.00, or 2.33 percent, to P220 apiece on Thursday.
