Jollibee Reports a 10.3% Sales Growth, But Rising Costs Hit Profits
Jollibee Foods Corporation posts a 10.3% year-on-year sales growth in the first quarter of 2026, even as profits take a hit from rising costs.
The Jollibee Group increased its sales in the first quarter of 2026 by 10.3% year-on-year to P113.9 billion. This was driven by growth both in the Philippines (8%) and in international markets (13.5%).
Jollibee, the Group’s flagship brand, recorded a global systemwide sales (or the total sales from all company-owned and franchised outlets) growth of 10.7%, with its global operating income increasing about 9.7%.
The Jollibee Group also opened 181 new stores during the quarter, including 149 international openings.
JFC’s operating income (or the profit from its restaurant operations) decreased by 18.2%, however, and the company’s net income (or its total profit after all taxes and interest) dropped 38.8% to P1.5 billion.
“Our first quarter results reflect the resilience of our diversified portfolio and the continued strength of consumer demand across our markets,” said Ernesto Tanmantiong, JFC’s CEO, in a May 11 press statement.
The corporation, he said, is “taking disciplined steps to manage near-term volatility through measured price increase beginning in Q2, alongside thoughtful and targeted cost management initiatives, while continuing to advance sustainable growth and long-term shareholder value.”
Profitability for the first quarter of 2026 was affected by an 11.7% increase in direct costs, as inflation and geopolitical unrest made it more expensive to source and move supplies.
The company is navigating margin pressure, a scenario where the rising cost of ingredients and logistics eats into profits faster than the company can adjust its menu prices. It reduced its advertising and promotion expenses during the first quarter of 2026 by 17.6%.
JFC, in its report, says it “maintains a confident long-term outlook” even as it reviews its planned capital expenditure and the pace of its store openings for 2026.
Frequently Asked Questions
The Jollibee Group reported a 10.3% year-on-year increase in sales, totaling P113.9 billion for the first quarter of 2026. This growth was fueled by an 8% rise in the Philippine market and a significant 13.5% jump in international markets. The flagship Jollibee brand specifically saw a global systemwide sales growth of 10.7%.
While sales grew, the company’s net income dropped by 38.8% to P1.5 billion, and operating income fell by 18.2%. This decline was primarily caused by an 11.7% increase in direct costs. Inflation and geopolitical unrest made it more expensive to source and transport supplies, creating margin pressure where costs rose faster than the company adjusted its prices.
The group continued its aggressive expansion by opening 181 new stores in the first quarter of 2026. The majority of these openings occurred outside of the Philippines, with 149 new international branches added to the company’s global footprint.
CEO Ernesto Tanmantiong announced that the company is implementing disciplined steps to combat volatility, including measured price increases beginning in the second quarter of 2026. Additionally, the company has introduced targeted cost management initiatives and already reduced its advertising and promotion expenses by 17.6% during the first quarter.
Despite the dip in quarterly profits, JFC maintains a confident long-term outlook. However, as a result of current economic pressures, the corporation is reviewing its planned capital expenditures and may adjust the pace of its store openings for the rest of the year to ensure sustainable growth and shareholder value.
