MANILA, Philippines – Lorenzo-led Pancake House Inc. expects a 74% boost in systemwide sales to P4.7 billion in 2012, thanks to the contribution of the premium pizza chain Yellow Cab that it acquired last August and new store openings.
Pancake House Inc., the group behind the casual dining restaurant of the same name as well as Teriyaki Boy and Sizzlin’ Pepper Steak, said in a disclosure to the Philippine Stock Exchange that it allocated P160 million for additional store openings this 2012.
Pancake House issued a statement after its chair Martin Lorenzo was quoted by Philippine Star that the group will pursue an aggressive expansion plan to put up 50 more new stores by year end to reach a total of 350 stores.
Lorenzo said that 50% of new branches will be franchised and the other 50% will be company-run.
With the full-year contribution of Yellow Cab, the Lorenzo-led group forecasts that earnings before interest, taxes, depreciation and amortization (EBITDA) will increase 72% from P320 million in 2011 to P550 million in 2012.
When the group bought Yellow Cab Foods Corp. for P800 million in August 2011, Lorenzo had foreseen its high contribution to his group’s earnings.
He then told broadsheets that “Yellow Cab is a top quality pizza chain that perfectly complements our other brands and is aligned with our strategic directions. We view it as an established top of mind, premium pizza brand and a profitable business in its own short-term and sustainable growth over the medium to long term.”
In their first full year as partners, the restaurant operator and its new pizza chain seem to be off to a rosy start. – Rappler.com