Store closures cut Max’s Group profit to P419M

MANILA, Philippines — Despite steady consumer demand, expenses related to store closures cut the earnings of restaurant chain Max’s Group Inc. last year by 13.8 percent to P419 million.

In its annual report, Max’s said revenues had inched up by 1.7 percent to P12.2 billion.

System-wide sales were flat at P18.7 billion as steady consumer demand softened the impact of Max’s leaner store network.

As of end-December, Max’s had 610 stores, down from 658 in 2023. According to the company, it is scaling down operations as part of its “strategic network optimization.”

Apart from one-time expenses from store closures, Max’s profit was also impacted by lower commissary sales and franchising income, which accounted for 16.4 percent and 6 percent, respectively, of the group’s total revenues.

Restaurant sales, which grew by 3.4 percent to P9.45 billion, contributed 77.6 percent.

Expenses

Cost of sales and services also rose by 5 percent to P8.5 billion due mainly to higher store costs from rent, supplies and utilities. Labor costs, including minimum wage adjustments and statutory benefits, likewise increased.

READ: Store closures cut Max’s Group income to P186M

“These results reaffirm [the group’s] adaptability to evolving market dynamics while maintaining financial resilience,” Max’s said in its filing.

“With a sharper focus on efficiency, brand strength and customer engagement, the group is well-positioned to sustain its growth trajectory in the years ahead,” it added.

Max’s core brands include flagship Max’s Restaurant, Yellow Cab Pizza, Pancake House and Krispy Kreme.

Its other brands are Jamba Juice, Teriyaki Boy, Dencio’s and Sizzlin’ Steak.