Jollibee says provincial reach remains at 15%

JOLLIBEE FOODS CORP. (JFC) said it sees significant room for further expansion in the Philippines, citing market penetration of only about 15% in many provincial municipalities despite its nationwide presence.

During its annual stockholders’ meeting last week, the company reaffirmed its positive long-term outlook for the domestic market, describing the Philippines as a key growth driver for the business.

Despite its extensive store network, JFC said many municipalities outside major urban centers remain underserved.

“Jollibee Group also sees growth potential beyond opening more stores. These upsides include delivery, digital channels, new dayparts, menu innovation, and deeper customer engagement that can drive increased frequency throughout its portfolio of brands,” the company said.

“Supported by its strong brand equity, operational excellence, and continued relevance across generations of Filipino consumers, the company expects the Philippines will remain a powerful growth engine for the Jollibee Group over the long term,” it added.

Last month, JFC said it was reviewing some of its assumptions for 2026, including the pace of store openings and capital spending, as geopolitical developments increased near-term input cost volatility.

Despite the review, the company said demand across its key markets remains stable and that it continues to monitor developments as it updates its forecasts.

JFC also said it is balancing efforts to keep its products affordable while protecting profitability as inflation and higher operating costs continue to weigh on the food service industry.

The company said it is focusing on product innovation, managing price points, and offering value meals while maintaining product quality and customer experience. It is also pursuing productivity initiatives, procurement savings, operational efficiencies, and disciplined pricing to help sustain margins.

For 2025, JFC reported attributable net income of P10.87 billion, up 5.4% from P10.32 billion in 2024.

Systemwide sales reached P455.1 billion, while consolidated revenue stood at P305.1 billion. Operating income totaled P20.2 billion.

The company said the results were driven by growth across its Philippine and international operations, as well as contributions from its Coffee and Tea and Chinese Cuisine segments and its core Philippine brands.

For the first quarter of 2026, however, attributable net income declined 38.8% to P1.47 billion from P2.41 billion a year earlier.

Net income for the January-to-March period fell 43.6% to P1.41 billion from P2.50 billion, while operating income dropped 18.2% to P3.95 billion.

JFC said quarterly profitability was affected by an 11.7% increase in direct costs, driven mainly by inflation in certain commodities and supply chain inputs, as well as recent geopolitical developments. — Alexandria Grace C. Magno