MANILA, Philippines – Restaurant chain Max’s Group, Incorporated (MGI) has seen its recent investment in new restaurants return a jump in profit for the first quarter of 2016.
In a disclosure to the Philippine Stock Exchange (PSE) on Friday, May 6, MGI reported a net income of P162.3 million from January to March this year, up 8% compared with P150.6 million during the same period in 2015.
The firm’s new store openings contributed to a 13% increase in restaurant sales to P2.32 billion from P2.05 billion.
Revenues from franchise, royalty, and continuing license fees also grew 46% to P134.3 million versus P92.0 million, year-on-year.
Partially offsetting this, however, was a drop in commissary sales by 13% to P222.2 million from P255.4 million.
“The numbers are in line with our estimates. We are now starting to realize the revenue impact of new stores that came onboard in the latter part of 2015,” said Robert Trota, president and CEO of MGI.
The expansion has also rolled onto the start of the year as Max’s Group opened 9 stores through its mainstay brands Max’s Restaurant, Pancake House, Yellow Cab Pizza, and Krispy Kreme in the first 3 months of 2016.
The group has also continued its push overseas, with 3 of its 9 newest outlets located abroad – a Max’s Restaurant in Qatar, a Yellow Cab Pizza branch in the United Arab Emirates, and a Sizzlin’ Steak concept store in California.
As of the end of March, MGI now has 577 stores, 37 of which are overseas.
The firm also said that it has inked 5 development agreements for 2016.
These are for 25 Yellow Cab Pizza stores in China, 5 Pancake House stores in Qatar, 5 Yellow Cab Pizza stores in Singapore, 5 Yellow Cab Pizza stores in Jordan, and 10 Yellow Cab Pizza stores in Egypt.
Looking to the rest of the year, Trota said that current economic conditions, notably the country’s increased consumption, work in the firm’s favor.
“We are primed to open another 60-70 stores in key strategic locations. Essentially, we have laid the groundwork to anchor our growth moving forward,” he said. – Rappler.com
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