New stores push Max’s earnings 32% higher

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MAX’S GROUP, Inc. (MGI) delivered a 32% profit increase to P118.5 million from July to September, as the company focused on improving productivity amid price pressures on raw materials.

On a nine-month basis, the casual dining restaurant operator’s net income reached P450.6 million, seven percent higher year-on-year.

System-wide sales went up by nine percent to P13.8 billion in the nine months ending September, on the back of same-store sales growth of 4%.

“We managed to extend our momentum from the second quarter into the subsequent period by centering on improving productivity measures and operational performance across the business,” MGI President and Chief Executive Officer Robert F. Trota said in a statement. “We plan to carry a similar mindset and at the same time ramp up new store openings ushering into the Christmas season.”

Restaurant sales went up by nine percent to P8.3 billion, as the company opened 38 new stores during the period. The new stores are equally split between company-owned and franchised formats. With this, franchising income grew by 24% to P535.2 million.

MGI ended September with a total of 681 stores worldwide, 57 of which are located across cities in North America, the Middle East, and Asia.

“Accordingly, we are determined and confident in our ability to finish the year on a strong note while putting ourselves in a unique position to grow further come 2019,” Mr. Trota said.

Shares in MGI jumped 2.11% or 22 centavos to close at P10.64 on Monday. — Arra B. Francia

 

*this article was copied and originally published in BusinessWorld, last November 13, 2018 and can also be found at https://www.bworldonline.com/new-stores-push-maxs-earnings-32-higher/

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