Max's group posts P1.68-B net loss in 2020

Casual dining operator Max's Group Inc. (MGI) saw its earnings swing to a net loss in 2020, dragged by the impact of the COVID-19 pandemic on business as lockdowns forced customers to stay at home for most of the year.

In a regulatory filing, MGI reported a net loss of P700 million in the fourth quarter of 2020 to bring its full-year net loss to P1.68 billion. This includes aggregate one-off costs after tax of P727 million.

Systemwide sales for the full year fell 46% to P10.85 billion from P20.11 billion in 2019, while revenues softened by 50% to P7.14 billion from P14.40 billion.

"This extraordinary year was a reflection of the global restaurant industry performance amidst the COVID-19 pandemic," MGI President & Chief Executive Officer Robert Ramon F. Trota said, noting that the company has chosen to focus on core brands.

MGI's business portfolio includes Max's Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Sizzlin' Steak, Teriyaki Boy, Dencio's, Kabisera, Maple, Jamba Juice, and Eats.

Overall, we are proud of how we navigated these challenging times, with multiple bright spots for growth. We continued to strategically invest in opening stores throughout the pandemic with our partners both locally and abroad," said Trota.

"Our international markets have demonstrated remarkable resilience to partially offset the challenges in the local environment. Such brands as Yellow Cab and Krispy Kreme, in particular, have continued to thrive in the market, with recovery outpacing the rest of our portfolio," he added.

MGI ended 2020 with a network covering 14 territories -- 604 stores in the Philippines and 59 stores situated across various locations in North America, the Middle East, and Asia. Out of the 663 stores, 95% or 630 stores were operational.

Shares in MGI closed Thursday up 5 centavos or 0.84% to P6.00 apiece from Wednesday's finish of P5.95.  --NB, GMA News