Max’s Group Inc., the country’s largest casual dining restaurant group, said net income in the third quarter of 2019 rose 8.3 percent to P128.32 million year-on-year on higher revenues.
Max’s said in a disclosure to the stock exchange third-quarter systemwide sales, a measure of all sales to consumers, increased 7.7 percent to P4.82 billion from P3.68 billion.
Revenue in the quarter amounted to P3.39 billion, up 5.3 percent on year.
“Our positive results are attributed to the success of our current company-wide strategies, namely: growing our franchise business, investing in supply chain modernization, and strengthening brand relevance. As industry conditions improve, we are resolute in our commitment to maintain market leadership and increase shareholder value,” said Max’s president and chief executive Robert Trota.
The positive third-quarter performance boosted the nine-month net income to P494.7 million, up 9.8 percent from P450.5 million a year ago.
Restaurant sales amounted to P8.53 billion, up 3 percent, driven by the pivot to franchising operations.
Commissary sales rose 13.5 percent to P1.29 billion from P1.13 billion, while franchising income climbed 13.6 percent to P608.23 million from P535.23 million.
Delivery sales in the nine-month period climbed 15.8 percent to P1.32 billion as the company continues to partner with food aggregators to supplement its in-house delivery operations.
“We hope to advance our overall performance during the holiday season and to end the year strongly. We have augmented the capacity of our commissary operations and continue to future-proof our business for sustained efficiency and long-term profitability,” said MGI chief operating officer Ariel Fermin.
Max’s opened 50 new stores from January to September, including 16 overseas to bring the company’s total store network to 730 branches, with 64 situated across several locations in North America, the Middle East, and Asia.
Max’s is the largest operator in the Philippine casual dining segment. Its family of brands includes Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Sizzlin’ Steak, Maple, Kabisera, Le Coeur De France and Singkit.