Jollibee Group reviews 2026 assumptions amid cost volatility

JOLLIBEE FOODS CORP. (JFC) said it is reviewing some of its 2026 assumptions, including the pace of store openings and capital spending, as geopolitical developments increased near-term input cost volatility.

“While first quarter demand trends remained healthy, recent geopolitical developments have increased near-term input cost volatility,” the company said in a statement on Tuesday.

“As a result, the Jollibee Group is reviewing certain 2026 assumptions, including the pacing of store openings, planned capital expenditures, and profitability expectations, while actively implementing mitigation actions across sourcing, productivity, selective pricing, and disciplined cost management,” it added.

Despite the review of its near-term plans, the company said demand in its key markets remains stable and that it continues to monitor conditions as it updates its forecasts.

JFC’s first-quarter attributable net income fell 38.8% to P1.47 billion from P2.41 billion a year earlier due to lower operating profit and unfavorable below-the-line items.

Net income for the January-to-March period declined 43.6% to P1.41 billion from P2.5 billion, while operating income dropped 18.2% to P3.95 billion.

JFC said quarterly profitability was affected by higher direct costs, which rose 11.7%, driven mainly by inflation in certain commodities and supply chain inputs, as well as recent geopolitical developments.

“First-quarter profitability was impacted by temporary cost pressures. Underlying demand across the business remained healthy. We view these headwinds as manageable, supported by disciplined cost controls, ongoing productivity initiatives, and targeted margin recovery actions across our brands and markets,” JFC Chief Financial and Risk Officer and Jollibee Group International Business Chief Executive Officer Richard Shin said.

“We also executed deliberate strategic conversions within Smashburger, where we are seeing encouraging early indicators of improvement, while our China business continues to make progress in its strategic pivot toward a higher ROIC franchising model,” he added.

Consolidated revenues rose 9% to P76.55 billion during the quarter, while systemwide sales (SWS) increased 10.3%, supported by stronger sales across several brands and markets.

In the Philippines, SWS grew 8%, led by Mang Inasal and Jollibee. Internationally, the group posted 13.5% growth, driven by brands including Compose Coffee, Highlands Coffee, Tim Ho Wan, Milksha, and Jollibee North America.

Same-store sales growth reached 3.5% during the period, with Philippine operations up 3.2% and international operations up 4%.

“Our first quarter results reflect the resilience of our diversified portfolio and the continued strength of consumer demand across our markets. We are encouraged by the healthy sales momentum across our businesses and the sustained expansion of our international footprint,” JFC Chief Executive Officer Ernesto Tanmantiong said.

During the quarter, the Jollibee Group carried out strategic conversions within its Smashburger brand to improve returns and long-term profitability.

“While the operating environment remains dynamic, we are 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,” Mr. Tanmantiong said.

The Jollibee Group opened 181 gross stores during the quarter, including 149 overseas. In China, Yonghe King added 29 stores under its franchise-led model.

The Coffee and Tea segment accounted for 103 of the new store openings.

On Tuesday, shares in JFC fell 10.67% or P17.20 to close at P144 apiece. — Alexandria Grace C. Magno