Insider Spotlight
The fast-food giant still expects to expand its global network this year, targeting 1,000 to 1,100 new stores, down from 1,200 to 1,300 previously, after growing its store count 6.4 percent year on year to 10,767 locations as of end-June.
Jollibee also lowered its operating income growth forecast to 10 percent to 15 percent from 15 percent to 18 percent and its same-store sales growth target to 3 percent to 4 percent from 4 percent to 6 percent.
Even then, Jollibee shares jumped 5 percent to P156 each, softening the slump in its stock price, which is still down about 13 percent this year and 27 percent over the past 12 months.
Jollibee leans on brand value
Jollibee CEO Ernesto Tanmantiong said demand remained healthy across its portfolio, which includes Jollibee, Mang Inasal, Coffee Bean & Tea Leaf, Highlands Coffee, Compose Coffee, Tim Ho Wan and Smashburger, among other brands.
“The breadth of our growth reflects the relevance of our brands, the strength of our value offerings, and the trust that customers continue to place in us,” he said in a statement on Tuesday.
Sales grow, but first-half profit falls
The more cautious outlook comes as first-half attributable net income fell 13.3 percent year on year to P4.87 billion, showing that Jollibee has yet to fully recover from cost pressures that weighed heavily on the first quarter.
First-half revenue still grew 9.9 percent to P162.46 billion, while system-wide sales climbed 12.4 percent to P244.67 billion, but operating income declined 7.1 percent to P10.11 billion.
There were clearer signs of a turnaround in the second quarter, when attributable net income rose 5.7 percent year on year to a record P3.4 billion, as price increases introduced in April and cost controls helped restore margins.
“The second quarter represents an important step forward in our earnings momentum,” said Jollibee chief financial and risk officer Richard Shin.
“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,” he added.
Price hikes help repair margins
Gross margin improved to 19 percent in June, while operating income margin reached 9.1 percent, giving Jollibee stronger momentum heading into the second half.
Jollibee maintained its 8 percent to 12 percent system-wide sales growth and 5 percent to 10 percent overall network growth forecasts for 2026, while narrowing planned capital spending to P13 billion to P15 billion from P13 billion to P16 billion.
—Edited by Miguel R. Camus
