Jollibee Foods (JFC) investor relations material

Executive summary

• Achieved record system-wide sales (₱130.8B, +14.2% YoY) and consolidated revenues for Q2 2026 rose 10.7% year-on-year to ₱85.9B, with broad-based growth across all regions and brands despite inflationary pressures and selective price increases.

• Q2 net income after tax grew 5.7% year-on-year to ₱3.4B, with net income for Q2 2026 up 3.0% and 1H 2026 net income down 16.7% due to Q1 foreign losses.

• Margin recovery accelerated in Q2, with gross profit margin rising from 16.5% in Q1 to 19% by June exit, driven by pricing, sourcing, and cost discipline.

• Strategic focus on franchise and asset-light expansion, with 77% of new store openings franchised and 461 new stores opened in 1H 2026.

• International momentum led by Jollibee EMEAA, North America, Highlands Coffee, Compose Coffee, and new acquisitions.

Financial highlights

• Revenue for Q2 2026 was ₱85.9B (+10.7% YoY); gross profit ₱15.9B (+7.1% YoY, 18.5% margin); operating income ₱6.2B (+1.8% YoY, 7.2% margin); EBITDA for 1H 2026 was ₱21.3B (+1.6% YoY).

• Free cash flow from operations grew 28% YoY to ₱11.1B, self-funding ₱6.2B capex and maintaining dividends.

• Basic EPS for 1H 2026 was ₱4.183, down 13.9% from 2025.

• All Day Fresh (Shabu All Day) acquisition contributed 0.7% to revenues and 3.7% to net income in Q2 2026.

• Digital sales penetration reached 32.5%, with delivery accounting for 20.4% of SWS.

Outlook and guidance

• FY2026 guidance: SWS growth 8–12%, same store sales growth 3–4%, operating income growth 10–15%, store growth 5–10%, gross store openings 1,000–1,100, capex ₱13–15B.

• Margin recovery and improving exit rates provide a stronger foundation entering H2, with continued focus on cost discipline and asset-light expansion.

• Four additional price increases planned for the second half to protect margins amid ongoing inflation.

• Management expects continued growth through disciplined expansion, franchise-led store openings, and digital channel enhancements.

• Ongoing macroeconomic risks include inflation, FX volatility, and geopolitical tensions, with mitigation via pricing, productivity, and supply chain optimization.