The country’s largest casual dining chain operator Max’s Group Inc. (MGI) booked a net income of P626.69 million last year, up by 12 percent on higher sales from its growing restaurant network.
MGI reported systemwide sales of P17.34 billion last year, up 13 percent, while revenues rose by 11 percent to P12.66 billion, based on a disclosure to the Philippine Stock Exchange on Friday.
Restaurant sales increased by 11 percent to P19.88 billion, driven by sustained same store sales performance and revenue contribution of new stores.
MGI’s delivery business grew by 27 percent to P1.37 billion, as the group broadened online ordering channels and upgraded delivery infrastructure.
Excluding the impact of new stores to allow better comparison from the previous year’s underlying earnings, same-store sales grew by 5 percent while overall transaction count expanded by 13 percent.
Franchising operations also contributed to the 13 percent increase in commissary sales of P1.42 billion from P1.26 billion.
“MGI maintained a strong growth momentum in 2017. Our brands ensured their relevance to today’s customers, and were undeterred in retaining their leadership positions in the casual dining segment despite the challenging market conditions encountered. We are excited to gain a stronger foothold in the consumer foodservice industry as we continue to expand our business through a renewed focus on franchising,” said MGI president and chief executive officer Robert Trota.
MGI opened a total of 78 new stores last year, 14 of which are located overseas. This brings the company’s store network to 673 branches, with 55 across various cities in North America, the Middle East, and Asia.
The company intends to focus on a franchising-led business model to drive expansion and improve accessibility to customers. With a planned rollout of 80 to 90 new outlets primarily through franchising its core brands, MGI seeks to set an active presence in key geographies, and at the same time, generate higher fee-based contributions to revenue.
Capital spending this year is programmed at around P600 million. This is to redeploy assets into other strategic initiatives such as a system modernization program to reinforce support services, and the construction and renovation of select flagship stores to improve the customer experience.
“Our strategies revolve around a customer-centric approach to focus on the needs of the market. And with this, we intend to build on MGI’s growth momentum as we create more value for all the stakeholders of our business. We will continue to aggressively pursue growth prospects for our core brands and at the same time, transform our cost structure by streamlining resources and maximizing workforce productivity to improve overall profitability,” said Ariel Fermin, MGI chief operating officer.