Jollibee looks to slow global expansion plans as higher costs bite

Dubai: Jollibee Foods Corp., the Philippines’ largest fast-food group and one of the country’s most internationally recognised restaurant businesses, has cut its 2026 expansion and spending targets as it navigates a higher-cost environment amid the Middle East conflict.

The company, known for its Chickenjoy fried chicken and sweet-style spaghetti, now plans to open 1,000 to 1,100 stores this year, down from an earlier target of 1,200 to 1,300, according to a stock exchange filing on Tuesday. That reduces the upper end of its planned store openings by 200 outlets, or about 15%.

Jollibee also lowered its capital expenditure forecast to between 13 billion pesos and 15 billion pesos ($212 million-$245 million), compared with its previous plan of as much as 16 billion pesos announced in March. Its operating income growth forecast was cut to 10%-15% from 15%-18%.

The revised assumptions reflect “ongoing portfolio optimization and the timing of store openings and closures” against a “still-dynamic cost environment,” the company said.

Despite the reduction, Jollibee continues to target substantial expansion in 2026. The group has 20 brands and operates more than 10,700 stores and cafes across 33 countries.

The scale of the network means the revised expansion plan remains significant. Opening 1,000 to 1,100 outlets would increase the group’s current store count by roughly 9%-10%, before accounting for closures and other changes to its portfolio.

Jollibee has expanded beyond its original fast-food business through both new store openings and acquisitions, building an international portfolio alongside its large Philippine operations.

The reduced targets come despite an improvement in Jollibee’s financial performance during the second quarter. Net income increased 5.7% to 3.4 billion pesos in the April-June period, while revenue rose 10.7% to 85.9 billion pesos.

The performance marked a recovery from the first quarter, when profit fell 39% as higher inflation weighed on earnings. “The second quarter represents an important step forward in our earnings momentum,” Chief Financial Officer Richard Shin said.

“Pricing actions implemented beginning in April, together with productivity, sourcing, and cost discipline initiatives, contributed to the recovery in gross profit margins.”

The results indicate that price increases and cost-control measures helped Jollibee improve profitability during the quarter, though the company remains cautious about costs and the pace of new store openings.

Investors responded positively to the latest results. Jollibee shares closed 5% higher on Tuesday, their largest gain in more than a month, while the Philippines’ benchmark stock index advanced 0.6%.

For Jollibee, the revised guidance represents a slower expansion plan rather than a halt to growth. The company still expects to add at least 1,000 stores during 2026 while spending as much as 15 billion pesos on capital expenditure.