Jollibee cuts store, spending targets as cost pressures linger
The fast-food giant is looking to open at least 200 fewer stores for 2026.
MANILA – Jollibee Foods, the Philippines' largest fast-food group, has lowered its store expansion plans and spending targets for 2026 due to rising costs stemming from the Middle East conflict. The company stated on August 11 that it now aims to open between 1,000 to 1,100 new stores, compared to the previously planned 1,200 to 1,300 outlets.
Capital expenditure is expected to range from 13 billion to 15 billion pesos, down from an earlier forecast of up to 16 billion pesos. Operating income growth is now anticipated to be 10 to 15 percent, compared to the earlier projection of 15 to 18 percent. These revised assumptions reflect ongoing optimization of the company's portfolio and the timing of store openings and closures in a still-dynamic cost environment.
Despite these challenges, Jollibee's second-quarter performance showed a recovery from a 39 percent profit slump in the first quarter, driven by soaring inflation. Net income during the April-June period increased 5.7 percent to 3.4 billion pesos, with revenue rising 10.7 percent to 85.9 billion pesos. Jollibee's shares saw a 5 percent surge on August 11, its highest level in over a month.
CFO Richard Shin attributed the improvement to pricing actions, productivity, sourcing, and cost discipline initiatives. The company, which operates 20 brands across 33 countries with over 10,700 stores and cafes, remains optimistic about its earnings momentum.
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