McDonald's PHL operator earmarks P3.5-B capex for 2017

McDonald's Philippines franchiseholder Golden Arches Development Corp. (GADC) has allotted P3.5 billion to cover capital expenditures (capex) this year, largely to support the goal of opening 45 new stores.

During a briefing in Taguig City on Wednesday, GADC president and CEO Kenneth S. Yang noted the company has earmarked P2 billion for expansion apart from P1.5 billion allocated to building a new meat processing plant.

"We're also building and commissioning a new plant. That's about P1.5 billion," he said.

Golden Arches intends to hit the yearly target of 45 stores this year, Yang said. "Our target is 45 restaurants. We're quite optimistic ... Our immediate target is 45 stores for this year. For the years after that we may actually increase," he said.

The company now has 521 branches across the Philippines, mostly in Luzon. Out of the total, 55 percent is company owned and 45 percent in franchising arrangements.

No IPO

Asked if the company is looking at the possibility doing and initial public offering (IPO) on the Philippine Stock Exchange (PSE), GADC said no such plan is in the offing.

"We are profitable, but it's not the main consideration. If we don't do an IPO, we are just answering to ourselves," Dr. George T. Yang, GADC chairman, said. — VS, GMA News