Restaurant chain operator Max’s Group Inc. said it expects 2015 to be a banner year for the company, with revenues growing by double digits on election-related spending and full consolidation of the country’s two leading casual dining chains.
Max’s president and chief executive Robert Trota said in an interview the company expects to post a net income this year after last year’s financial performance.
Operations suffered from higher spending on store renovation and upgrade, as part of a comprehensive restructuring program.
“We are anticipating a banner year for 2015. Historically, one year before the elections is good the restaurant business because of the election-related spending and we are well-positioned to service those needs,” Trota said.
The Securities and Exchange Commission in November approved the acquisition of Pancake House House of Max’s, which resulted in the latter’s backdoor listing with the Philippine Stock Exchange.
Max’s in 2014 posted a consolidated net loss of P66.2 million and revenues of P4.86 billion, which included the full year operations of Pancake House and the two-month contribution of Max’s owned restaurants.
Max’s on a pro-forma basis posted a net loss of P56 million in 2014 on revenues of P9.54 billion.
Max’s chief finance officer Dave Fuentabella said 2014 was a transformative and preparatory period for the company, anchored on a series of market-moving transactions, beginning with the acquisition of Pancake House Group, post-integration activities and a successful follow-on offering.
“The results so far are in line with management’s expectations owing to planned and focused efforts to rationalize operations of two iconic food chains,” Fuentabella said.
Max’s this year plans to spend P500 million to roll out 80 to 90 stores, including 5 to 8 outlets overseas.
“We are bullish about growth prospects moving forward as we see consumer buying power improving in the Philippines and across Asia in the next couple of years,” said Trota.
“Operational integration is on track with the company’s overall development strategy, and we look forward to unlocking the potential of a larger group and to propelling our brands to the next phase of growth,” he added.
Aside from top four brands, Max’s, Pancake House, Yellow Cab, and Krispy Kreme, Max’s also owns several restaurant brands, including Dencio’s, Teriyaki Boy, Sizzlin’ Steak, Le Coeur De France, Maple and Jamba Juice.