Max’s Group, Inc. (MGI) grew its net income by 17.6% in the first quarter of 2019, as the company benefited from its strategic shift to franchising and other cost stabilization efforts.
In a statement issued Friday, the listed casual dining restaurant group said net income reached P146 million in the first three months of the year following a 4.2% rise in revenues to P3.4 billion. Systemwide sales also firmed up 3.4% to P4.6 billion.
“Our improved year on year performance is attributed to the effectiveness of our reshaped growth strategies in 2018, particularly our focus on franchising, cost stabilization, and customer-centric activities,” MGI President and Chief Executive Officer Robert F. Trota said in a statement.
The company noted that franchising income jumped 47.5% to P225.1 million against the P152.6 million seen in the same period a year ago. Commissary sales also went up seven percent to P404.1 million.
This came after MGI’s decision to have more franchised stores by 2022, with a ratio of 70% to 30% versus company-owned stores. Company-owned stores currently account for 60% of total stores, while the remaining 40% are franchised.
The strategy is also seen to accelerate its long-term expansion.
“Through the strategic capabilities that we have built over the years, notably analytics, restaurant systems and an integrated supply chain, we are generating a more profitable mix and increasing operational efficiencies,” MGI Group Chief Operating Officer Ariel P. Fermin said in a statement.
MGI opened a total of 14 new stores in the first quarter, two of which are located in the United Arab Emirates, one in Saudi Arabia, and one in Canada. This brings the company’s total store count to 706 outlets. — Arra B. Francia