Restaurant chain operator Max’s Group Inc. said Friday net income rose 8 percent in the first quarter to P162.3 million from P150.6 million in the same period last year, following the rollout of more stores.
Max’s Group said in a disclosure to the stock exchange first-quarter sales advanced 12 percent to P2.68 billion, including P2.32 billion in restaurant sales, which rose 13 percent from P2.05 billion a year ago.
Max’s Group said it opened nine stores across star brands Max’s Restaurant, Pancake House, Yellow Cab Pizza and Krispy Kreme in the first three months.
These included three international outlets, including Max’s Restaurant in Qatar, Yellow Cab Pizza in the United Arab Emirates and a Sizzlin’ Steak concept store in California.
MGI was operating a chain of 577 stores including 37 abroad, as of end-March 2016.
“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,” Max’s Group president and chief executive Robert Trota said.
“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 to 70 stores in key strategic locations. Essentially, we have laid the groundwork to anchor our growth moving forward,” Trota said.
Max’s Group said it signed five development agreements to open stores in other countries in 2016.
These agreements covered 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, which are set to be operational in the coming years.
“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,”said Max’s Group International chief executive Peter King.