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 as increasing consumer affluence boosted earnings from its expanding restaurant network.
MGI’s system-wide sales rose by 13 percent to P17.34 billion last year, while revenue increased by 11 percent to P12.66 billion, based on a disclosure to the Philippine Stock Exchange yesterday.
Restaurant sales increased by 11 percent to P19.88 billion, driven by sustained same-store sales performance and revenue contribution of new stores.
Same-store sales grew by 5 percent while overall transaction count was up by 13 percent.
Amid rising urbanization trend and consequent worsening of traffic, MGI’s delivery business grew by 27 percent to P1.37 billion, as the group broadened online ordering channels and upgraded delivery infrastructure.
Franchising operations also contributed to the 13 percent rise in commissary sales of P1.42 billion from P1.26 billion.
The group’s 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.
MGI opened 78 new stores last year, 14 of which are located overseas. These brought the company’s store network to 673 branches, with 55 in 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 was placed at P600 million.