Jollibee Foods Corp. (JFC), one of the largest Asian food service companies, will raise prices and is reviewing its expansion plans this year in light of recent geopolitical developments that have increased near-term cost volatility, resulting in a drop in its first-quarter earnings.

The development is closely watched in the Philippines, where household spending—especially on food—remains a key driver of economic growth and homegrown Jollibee has long been regarded as one of the country’s most recognizable and widely patronized consumer brands, including among overseas Filipinos and international customers.

The planned price increases also come at a time when Filipino consumers are grappling with faster inflation and slower growth, partly driven by the spillover effects of the ongoing war in the Middle East, particularly higher oil and supply-chain costs.

While first-quarter demand trends remained healthy, Jollibee Group is reviewing certain 2026 assumptions, including the pacing of store openings, planned capital expenditures (capex), and profitability expectations.

During this time, it is also actively implementing mitigation measures across sourcing, productivity, selective pricing, and disciplined cost management.

“Jollibee Group remains focused on executing its growth strategy, expanding its global store network, strengthening margins over time, and delivering sustainable long-term shareholder value,” the firm said.

Attributable net income fell by 38.8 percent to ₱1.47 billion in the first quarter of 2026 from ₱2.41 billion during the same period last year, reflecting lower operating profit and unfavorable below-the-line items.

Profitability for the quarter was affected by elevated direct costs, which increased 11.7 percent, primarily due to inflationary pressures impacting certain commodities and supply chain inputs amid recent geopolitical developments.

Jollibee Group delivered a solid topline start to 2026, with first-quarter system-wide sales (SWS) increasing 10.3 percent year-on-year, supported by broad-based strength across multiple brands and geographies.

Jollibee, the group’s flagship brand, continued to perform strongly during the quarter, with global SWS growth of 10.7 percent, 4.2-percent same-store sales growth (SSSG), and global operating income increasing by approximately 9.7 percent.

Jollibee Group continued to expand its global store network, opening 181 gross new stores during the quarter, including 149 international openings.

China, through Yonghe King, opened 29 new stores during the quarter under its higher-return, franchise-led model, further positioning the business for stronger long-term returns. The coffee and tea business remained a meaningful contributor to international growth, accounting for 103 new stores.

“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,” said Tanmantiong.

Consolidated revenues increased by nine percent to ₱76.55 billion for the first quarter, while SWS grew by 10.3 percent to ₱113.86 billion.

SWS for the Philippine business increased by eight percent, supported by strong contributions from Mang Inasal (up 16.1 percent) and Jollibee (7.6 percent higher).

The international segment expanded by 13.5 percent, led by Compose Coffee (up 31.1 percent), Europe, Middle East, Africa, and Asia (EMEAA) Philippine brands (up 25.9 percent), Tim Ho Wan (22.5 percent more), Highlands Coffee (27.5 percent higher), Milksha (15.4-percent growth), and Jollibee North America (up 10.8 percent).

SSSG for the quarter grew 3.5 percent, with the Philippine business up 3.2 percent and the international business up four percent.

Philippine SSSG reflected continued customer demand across key brands against a higher base in the prior year, which benefited from election-related spending. Demand trends also improved in March, supported by graduation-related spending.

All international markets delivered positive performance: North America, 4.6 percent (Jollibee North America, 6.8 percent; Smashburger, 2.4 percent); and EMEAA, 8.9 percent, with Jollibee Vietnam posting 25.9 percent. Other brands also recorded growth, including The Coffee Bean & Tea Leaf (CBTL) at 1.4 percent, Highlands Coffee at eight percent, and Milksha at 8.9 percent.

Richard Shin, JFC chief financial and risk officer and Jollibee International CEO, said: “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.”

“We are managing today’s cost volatility prudently, and we remain confident in our long-term growth outlook. As costs normalize over time, we remain focused on prudent capital allocation and sustaining profitable, long-term growth,” he added. - James A. Loyola