MCDONALD’S Philippines reported spending more than P3 billion last year in capital investments to record a double-digit growth in its business.
In a statement Wednesday, the local unit of the global food giant owned by businessman George T. Yang said it booked P55 billion in systemwide sales last year, more than a 15% increase from 2018. This is equivalent to a compound annual growth rate in systemwide sales of 14% over the past 10 years.
The company also said it was able to open 58 new stores last year to reach new areas in the countryside. McDonald’s set foot in Camarines Sur, El Nido, Coron, Mangatarem in Pangasinan, Digos in Davao del Sur, Mati in Davao Oriental, Lagao in General Santos, Silay and Cadiz in Negros Occidental, Danao in Cebu and Caibaan in Tacloban in 2019, closing the year with a total of 669 stores across the Philippines.
The company said most of these newly opened stores have a drive-thru feature, resulting in a growth in this business segment. The company’s McDelivery service was likewise a growth driver last year, boosted by partnerships with food aggregators like Grab Food and Food Panda.
After announcing last year that it wants to roll out more “NXTGEN” stores — or stores equipped with modern designs and self-order kiosks — it successfully completed 140 of these stores at the end of 2019. The first store of such kind was opened in Taguig City in October 2018.
“The continued rollout of NXTGEN is a strategic investment as we continue to grow in the Philippines,” McDonald’s Philippines President and Chief Executive Officer Kenneth S. Yang said in the statement.
“It has always been our priority to constantly evolve and introduce innovations for our customers to enhance their experience across different touch points,” he added.
Mr. Yang noted McDonald’s generates an average of 80 new jobs every time it opens a store, and has so far directly hired more than 60,000 employees across the country.
It also taps senior citizens and persons with disabilities through an alternative workforce program, where it partners with local government units such as Manila, Pasig, Pasay, Caloocan and Antipolo.
“Beyond the growth we experienced in the previous year, we have also made strides in making an impact in the lives of Filipinos through employment and our direct-hiring policy,” Mr. Yang said. — Denise A. Valdez
