Jollibee cuts store, spending targets as cost pressures linger
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Philippines-based fast-food giant Jollibee is known for its fried chicken and sweet spaghetti.
PHOTO: ST FILE
MANILA – Jollibee Foods tempered store expansion and spending targets for 2026, as the Philippines’ largest fast-food group navigates a higher cost environment amid the Middle East conflict.
The company that is known for its fried chicken and sweet spaghetti is now looking to open 1,000 to 1,100 new stores, lower than the 1,200 to 1,300 outlets planned earlier, according to a statement to the stock exchange on Aug 11.
Capital expenditure is expected to be around 13 billion pesos (S$270 million) to 15 billion pesos from an earlier plan of as much as 16 billion pesos announced in March. Operating income growth is seen to range 10 per cent to 15 per cent, from 15 per cent-18 per cent previously.
The new assumptions reflect “ongoing portfolio optimisation and the timing of store openings and closures” against the backdrop of a “still-dynamic cost environment”, the company said.
The fresh plans come even as Jollibee’s second-quarter performance showed a business that is recovering from a 39 per cent profit slump in the first quarter due to soaring inflation.
Net income during the April-June period rose 5.7 per cent to 3.4 billion pesos as revenue jumped 10.7 per cent to 85.9 billion pesos.
Jollibee’s shares closed 5 per cent higher on Aug 11, the most in more than a month.
“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 company’s portfolio includes 20 brands, with over 10,700 stores and cafes across 33 countries, including Singapore, the United States, China, Vietnam and Canada. BLOOMBERG
