Max’s to open more stores in Middle East
MAX’S Group Inc. (MGI), which operates the country’s biggest casual restaurant group, outlined new expansion plans in the Middle East and Asia while reporting higher earnings from January to September this year.
MGI, which is behind the Max’s Restaurant fried chicken chain and Pancake House, said in a stock exchange filing that net income during the period hit P313.12 million, reversing a net loss of P31.36 million in the same period last year.
Robert F. Trota, president and CEO of MGI, also said the company is continuing its expansion plans overseas. It recently opened its 19th overseas Max’s Restaurant in Al Ghurair, United Arab Emirates.
Max’s Group currently operates a network composed of 547 stores both here and abroad.
“We have signed four development agreements with reputable international partners this year for 15 Yellow Cab stores in Saudi Arabia within 10 years, 10 Yellow Cab and 8 Pancake House restaurants in United Arab Emirates within 5 years and 10 Sizzlin’ Steak outlets in Vietnam within 5 years,” Trota said.
As of end-September, the group’s consolidated revenues rose 170 percent to P7.3 billion compared to the same period last year.
On a pro-forma basis, top line growth was 6 percent amid delayed openings and planned closures of underperforming stores, which forms part of the company’s ongoing rationalization program. MGI is expected to benefit from a streamlined store network, allowing it to maximize returns and resources.
“The results are reflective of the historical seasonality effect during this time of the year. Nevertheless, we are poised to generate momentum ushering into the Christmas period,” Trota said.
“There were unforeseen delays encountered with our store openings but nonetheless we are geared to accelerate our pace in the remaining months. We are looking to add around 50 to 60 new stores by December with full year revenue potential expected to be realized in 2016,” he added.
Store sales, which comprised bulk of revenues, grew 6 percent to P6.20 billion from P5.87 billion for the same period in review.
Franchise income went up 41 percent to P287.05 million as of September 2015 from P204.13 million during the same period last year. Commissary sales rose 3 percent to P813.59 million year-on-year. Miguel R. Camus
