CASUAL dining chain operator Max’s Group Inc. (MGI) on Friday reported an 8 percent increase in net profit for the first three months of the year on the positive performance of its existing and newly opened restaurants.
In a disclosure to the Philippine Stock Exchange, MGI said net income in the first quarter rose to P162.3 million from P150.6 million in the same period last year, while revenue grew 12 percent to P2.68 billion from P2.40 billion previously.
It said restaurant sales increased 13 percent to P2.32 billion from P2.05 billion last year, driven by same-store growth and new store openings for the period in review.
“The numbers are in line with our estimates. We are now starting to realize the revenue impact of new stores that came onboard in the latter part of 2015. By recalibrating our design and build plan, we expect a leveled and systematic rollout of stores for the entire year,” Robert Trota, president and chief executive officer of MGI, said.
Commissary sales of the restaurant, however, fell 13 percent to P222.2 million from P255.4 million last year, although this was offset by revenues from franchise, royalty and continuing license fees, which grew 46 percent from a year ago to P134.3 million.
From January to March 2016, Max’s Group opened nine stores across its star brands such as Max’s Restaurant, Pancake House, Yellow Cab Pizza and Krispy Kreme.
These include three international outlets—Max’s Restaurant in Qatar, Yellow Cab Pizza in the United Arab Emirates and a Sizzlin’ Steak concept store in California.
MGI operates a chain of 577 stores including 37 overseas as of the end of March this year.
“For 2016, we are positive that the prevailing macroeconomic backdrop will remain favorable, spurred by continuous consumer spending. We are primed to open another 60-70 stores in key strategic locations. Essentially, we have laid the groundwork to anchor our growth moving forward,” Trota said.
On the international front, MGI has so far entered into five development agreements during the year.
These consist of 25 Yellow Cab Pizza stores in China, five Pancake House stores in Qatar, five Yellow Cab Pizza stores in Singapore, five Yellow Cab Pizza stores in Jordan and 10 Yellow Cab Pizza stores in Egypt.
This translates to a firm overseas pipeline of more than 130 outlets set to be operational in the coming years.