THE COUNTRY’S leading casual restaurant chain Max’s Group Inc. saw a 4 percent year-on-year growth in first semester net profit to P295.33 million as the group generated higher sales from its growing store network.
Revenues for the six-month period grew by 10 percent year-on-year to P5.43 billion, driven by higher restaurant and commissary sales as well as franchising fees.
MGI’s restaurant sales increased by 9 percent to P4.53 billion in the first six months, attributed to new store openings and stable same store sales performance.
Commissary sales rose by 13 percent to P630.87 million while revenues from franchise,
royalty and continuing license fees increased by 28 percent to P270.52 million compared to their respective levels in the first semester last year.
Systemwide sales were up by 13 percent year-on-year to P7.43 billion.
“The results are consistent with our growth story and the overall state of the economy. For the second half, we will continue to execute a balanced store rollout in key strategic areas,” Max’s Group president Robert Trota said in a press statement on Wednesday.
As of end-June, MGI operated a network of 600 stores including 38 abroad. Its family of brands include Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Meranti, Sizzlin’ Steak, Maple, Kabisera, Le Coeur De France and Singkit.
In the first half, the group opened 35 new stores, including an international outlet for Max’s Restaurant in Kuwait.
For the offshore business, MGI has so far inked 11 development agreements for 2016: 70 Yellow Cab Pizza stores across China, Saudi Arabia, United Arab Emirates, Singapore, Egypt and Jordan, 13 Pancake House outlets between Qatar and United Arab Emirates, 10 Sizzlin’ Steak branches in
Vietnam and three Max’s Restaurant in San Diego. MGI has a pipeline of over 130 stores slated to open in the coming years.
“We have surpassed expectations due to the overwhelming response of foreign markets to our international expansion program. This clearly shows that our brands are well-primed for the global stage,” said Peter King, chief executive officer of Max’s Group International.
On support activities, MGI said it continued to unlock operational efficiencies through its shared services approach. Supply chain initiatives have benefited from negotiated pricing and prompt payment discounts translating to lower costs for food and non-food items. Migration to an upgraded enterprise resource-planning platform has likewise paved the way for process standardization efforts.
“For the remainder of 2016, we share in the optimism on the general macro climate of the country. Domestic consumption is still seen to stir economic activity in the long-term. As such, to capitalize on this growth outlook, we are looking to close the year with around 60-70 new stores,” Trota said.