Resto chain optimistic of strong finish

By Ruelle Albert Castro, November 14, 2017, Malaya Business Insight


Max’s Group Inc. posted profits of P421.73 million for the first nine months of the year, up 11 percent from P380.56 million a year ago.

Its revenues grew 12 percent to P9.04 billion for the period, from P8.09 billion the year earlier, while systemwide sales rose 14 percent to P12.6 billion, from P11.09 billion last year.

“Restaurant sales rose 13 percent to P7.59 billion from P6.72 billion driven by revenue contribution of new stores and healthy same store sales showing. Blended same store sales growth was at 5 percent for the covered period,” Max’s Group said.

“Commissary sales went up 5 percent to P1.02 billion from P971.03 million primarily indicating stable performance of the franchising business,” it added.

The company saw revenues from new franchises, royalty and continuing license fees climbing 8 percentto P432.72 million, from P399.87 million last year, resulting from higher recurring income and new franchising contracts.

Earnings before interest, taxes, depreciation and amortization stood at P970.80 million.

“The results underscore our steady growth state notwithstanding the effects of cyclicality, rising input costs and heightened competition. As we channel this momentum into the Christmas season, we are primed for another strong finish to cap off the year,” said Robert Trota, Max’s Group president.

As of the third quarter, Max’s Group opened 58 new stores both domestically and abroad, bringing its overall network to 660 branches. The company plans to establish 10 to 15 additional outlets for the remainder of the year.

On the international front, Max’s Group said it continues to broaden its footprint in various geographies around the globe. To date, the company opened 11 new stores to shore up its existing count to 57 outlets scattered throughout North America, Middle East and parts of Asia.

It also inked a number of fresh development agreements for a combined 31 future sites across loved brands Max’s Restaurant, Yellow Cab Pizza and Sizzlin’ Steak.

Since 2015, Max’s Group has secured a committed pipeline of 126 stores, of which 16 are currently operational. It intends to concentrate efforts on further accelerating store-building activities beginning next year.

“The success of recent store openings has taken franchising interest in our brands to an all-time high particularly in Asia. We also have the necessary structure in place to seize this opportunity. At present, we have deployed regional teams to provide quick and focused support for all our markets,” said Peter King, Max’s Group chief executive officer for international operation.

Max’s Group said it encountered “challenging industry conditions such as commodity price escalations, increased competitive pressure and wet climate” for the period.

“Nonetheless, the Company capitalized on its operational scale to derive cost advantages, streamlined menu mix and tactical marketing campaigns to cushion price hikes and boost customer frequency,” it said.

“While we expect to close 2017 on a high note, we remain confident of our growth prospects heading into next year. We plan to rollout around 80-90 stores including 25-30 offshore for 2018,” said Trota.

 

*This article is copied from the news published in the newspaper by Malaya Business Insight and can be found online at http://www.malaya.com.ph/business-news/business/resto-chain-optimistic-strong-finish



Tags: members news, Max's Group,
Date: November 16, 2017