Max’s Group’s net income rises by 8% to P162.3M in Q1 2016
Max’s Group Inc. which boasts of being the country’s largest casual dining restaurant chain reported an eight-percent growth in net income to P162.3 million in the first quarter of the year, fed mainly by restaurant sales and revenues from franchise and royalty fees.
“The numbers are in line with our estimates. We are now starting to realize the revenue impact of new stores that came on board 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,” Max’s Group president and CEO Robert F. Trota said.
Max’s Group’s restaurant sales grew by 13 percent to P2.32 billion in the first quarter from a year ago, with steady growth from existing stores boosted by newly opened stores during the period.
Max’s Group opened nine stores across its more popular brands in the first quarter of the year, including three international outlets: a Max’s Restaurant in Qatar, a Yellow Cab Pizza store in the United Arab Emirates, and a Sizzlin’ Steak concept store in California.
“We have gained a lot of traction since launching our offshore expansion program. Exposure and interest in our brands is scaling up faster than expected as we tap new territories,” Max’s Group International CEO Peter H. King said. The company has a total of 37 stores abroad and has signed has signed five development agreements in 2016 alone that will allow it to set up stores in several locations overseas.
Max’s Group’s commissary sales, however, dropped by 13 percent to P222.2 million from a year ago, but revenues from franchise, royalty, and continuing license fees ballooned by 46 percent to P134.3 million, offsetting the decline in commissary sales. (By: Eileen A. Mencias)