Jollibee Q1 earnings nearly halved

Revenue and systemwide sales grow, but higher costs weigh on profitability.

Jollibee Foods Corp. posted a sharp drop in first-quarter earnings, with net income falling 43.6% to ₱1.41 billion from ₱2.5 billion a year earlier. This came as higher input costs weighed on profitability, even as the group continued to scale its operations.

Revenue rose 9% to ₱76.55 billion, while systemwide sales increased 10.3% to ₱113.86 billion, supported by steady growth across both domestic and international markets. The Philippines expanded 8%, while overseas operations grew 13.5%, driven by continued demand across key regions.

Expansion remained active during the quarter, with the group opening 181 gross new stores, including 149 abroad. China added 29 outlets under Yonghe King’s franchise-led model, while the coffee and tea business contributed 103 new stores, reinforcing its role in international growth.

Management said underlying demand stayed firm despite cost pressures, supported by productivity initiatives, cost controls, and targeted actions to protect margins.

Strategic pivots and price hikes

The company is also rolling out price adjustments in the second quarter alongside efficiency measures. Portfolio adjustments continue, including early improvements in Smashburger and a strategic shift in China toward a higher-return franchising model.

Executives said the group remains focused on managing near-term cost volatility while sustaining long-term growth and shareholder value.

 

 

Revenue is up, but profits are down. Jollibee’s Q1 earnings nearly halved as the fast-food giant battles soaring input costs and a massive 181-store global expansion.