McDonald’s Philippines is spending P3.5 billion to expand its chain of quick-served restaurants by 45 stores in 2017 and put up a second meat plant.
McDonald’s Philippines president and chief executive Kenneth Young said the company was focusing on speeding up expansion in the Visayas and Mindanao.
“Majority of our stores are in Luzon and Metro Manila. We would like to see VisMin catching up with the numbers. So we’re spending P2 billion for the initial 45 stores this year. In fact, we have already four stores in the pipeline that are opening soon including stores in Cagayan de Oro, Bacolod and Davao,” he said.
McDonald’s Philippines ended 2016 with 520 stores. With the additional 45 stores in 2017, the company’s system-wide stores will increase to 565 outlets by yearend.
Company-owned stores comprised 55 percent of the total store units as of end-2016, while franchises made up for the remaining 45 percent.
McDonald’s Philippines had a solid year, after it posted a record revenue of P38 billion in 2016, up 14 percent from the 2015 sales. The company is looking at gross revenue of P41 billion in 2017, or 7.8 percent higher than P38 billion in 2016.
McDonald’s Philippines chairman George Young said the company posted double-digit growth in the past ten years, “and we’re optimistic that we will continue that growth trend in the future.”
McDonald’s Philippines is 51-percent owned by the Young family via Golden Arches Development Corp. and 49-percent by Alliance Global Group Inc. of tycoon Andrew Tan.