Max's Group posts 8 percent net income growth in Q1

Casual dinning-restaurant chain Max's Group Inc., posted a net income of P162.3 million for the first quarter of 2016, up 8 percent from P150.6 million from a year earlier.

Max's revenues grew by 12 percent to P2.68 billion from P2.40 billion. 

Restaurant sales reached P2.32 billion, up 13 percent from P2.05 billion driven by steady same-store sales growth and new store openings in January to March, the company told the Philippine Stock Exchange on Friday.

“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 re-calibrating our design and build plan, we expect a leveled and systematic roll out of stores for the entire year,” said Robert F. Trota, president and CEO of Max’s.

Commissary sales, however, fell 13 percent to P222.2 million from P255.4 million.

The company noted the decline was offset by revenues from franchise,
royalty and continuing license fees which grew 46 percent to P134.3 million from P92.0 million in 2015.

New stores

In the first quarter of 2016, Max's opened nine stores mainly across its flagship brands Max’s Restaurant, Pancake House, Yellow Cab Pizza and Krispy Kreme.

This includes three international outlets namely Max’s Restaurant in Qatar, Yellow Cab Pizza in United Arab Emirates and a Sizzlin’ Steak concept store in California. 

As of the end of March this year, Max's operates a chain of 577 stores including 37 abroad.

On to the international front, the company has inked five development agreements for this year.

These are comprised of 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 an overseas pipeline of more than 130 outlets set to be operational in the coming years. —John Ted Cordero/KG, GMA News