EARNINGS of Max’s Group, Inc. (MGI) grew 14.8% in 2019 on the back of stronger revenues recorded during the fourth quarter.
In a statement yesterday, the listed restaurant operator said its net income last year stood at P724.23 million. Most of it came from the 27.1% rise in net income in the fourth quarter to reach P229.45 million.
System-wide sales, or the sales to consumers from across its store network, increased 7% to P20.11 billion for the whole year. Revenues likewise climbed 5.3% to P14.4 billion.
“Our performance demonstrates the success of our strategies to focus on our core business and spur long-term expansion through franchising,” MGI President and Chief Executive Officer Robert F. Trota was quoted in the statement as saying. “Our continued investment in our commissaries also marshals the integration and modernization of our operations.”
Restaurant sales of MGI gained 4.4% to P11.79 billion, as commissary sales improved 13.6% to P1.78 billion. Revenues from franchising and others also saw a 1% uptick to P828.92 million.
The company attributed the growth of its performance to the partnerships it has with food aggregators. Including revenues from its in-house delivery operations, system-wide delivery sales rose 20.4% to P1.87 billion.
“Following a year where we invested in our brands to drive mainstream relevance, our focus now is to deliver on the increased demand. Our integrated supply chain programs are designed to furnish consistent quality, cost-optimized, and responsive services to our growing customer base and store network,” MGI Group Chief Operating Officer Ariel P. Fermin said.
“The fundamentals we put in place will serve us well in light of the challenges we now face in 2020,” he added.
Mr. Trota also told investors that MGI is “cognizant of the headwinds in the current business environment” and assured them that “our teams are well-equipped to sustain levels of service and profitability.”
MGI closed 2019 with 82 new stores, of which 22 are abroad. The company is now present in 760 locations, where 70 are spread across North America, the Middle East and Asia.
MGI is the operator of Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Sizzlin’ Steak, Maple and Kabisera. Its shares at the stock exchange shed 38 centavos or 6.15% yesterday to close P5.80 each. —Denise A. Valdez