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Max's Group Inc.
...kung saan may Pilipino, gawa kayo branch dun Big Grin

Max’s to bring Pancake House to Saudi Arabia

MAX’S GROUP, Inc. (MGI) has partnered with a Jeddah-based company to open 12 Pancake House branches in Saudi Arabia, as part of the listed casual dining operator’s overseas expansion.

In a statement, MGI said it has signed a development agreement with Al-Bader National Establishment for Real-Estate Development for the establishment of Pancake House branches in Saudi Arabia.

Pancake House is a restaurant chain known for its all-day breakfast items such as waffles, and sandwiches, as well as tacos, spaghetti and pan-fried chicken. It currently has seven overseas franchised outlets in Malaysia and United Arab Emirates.

“Our international business continues to build on its momentum sustained from last year. We are excited with the prospect of entering a familiar territory this time around with another one of our loved brands. We believe the brand’s attributes and offerings will successfully make its way into the mainstream population,” MGI President and CEO Robert F. Trota was quoted as saying in a statement.

Al-Bader National Establishment for Real-Estate Development is mainly involved in real estate and property development, but has recently expanded into the food and beverage business.

“We are excited to bring Pancake house to Saudi Arabia. We have been searching for a renowned brand to spearhead our venture into the food sector with the intention to deploy a substantial amount of investment. We find the brand’s assorted menu mix and all-day dining concept appealing to various demographic profiles,” Al-Bader National Establishment for Real-Estate Development CEO Badr Hamdi Hamed Albalawi said.

MGI continues to be aggressive in expanding overseas, as it targets to have 200 international stores by 2020.

This year, MGI targets to open 20 to 30 new international stores this year, mostly under its Max’s Restaurant, Pancake House and Yellow Cab Pizza brands.

Two more Pancake House branches in the United Arab Emirates and the first Pancake House store in Qatar are expected to be opened this year.

The company targets to have around 75 to 80 stores overseas by end-2018.

For the first nine months of the year, MGI’s attributable profit increased 8% to P419 million, on the back of an 11% rise in revenues to P9.04 billion.


source: http://bworldonline.com/maxs-bring-panca...di-arabia/
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5-10

Max's Q1 net income falls 30 pct on raw material, manpower costs

MANILA - Max's Group said Thursday net income in the first 3 months of the year fell 30 percent due to higher prices of raw materials and a larger manpower component due to new labor policies.

The country's largest casual dining group posted net income of P123.7 million in the first quarter, down from P176 million during the same period in 2017.

System-wide sales during the same period rose 13 percent from the previous year to P4.4 billion. Total revenues rose 11 percent to P3.2 billion, said the company, which operates Max's Fried Chicken, Yellow Cab and Pancake House.

Consumer prices had risen steadily since higher taxes on fuel and sugar-sweetened drinks took effect last Jan. 1. In April, inflation accelerated to 4.5 percent, overshooting the top end of the government's 2 to 4 percent goal for the year.

A crackdown on labor-only contracting is also underway, with President Rodrigo Duterte warning businessmen involved in illegal contracting that their days are numbered.

"On the cost side, MGI was weighed down by escalating raw material prices and a larger manpower component as it realized the impact of its move towards professionalization which began in 2017," Max's said.

"This initiative was undertaken to reinforce strategic capabilities at the management level to ensure sustainable growth. The Company likewise took into account recently enacted labor policies particularly on third-party service engagements," it said.

Max's Fried Chicken and Yellow Cab recently offered meals for solo diners to tap into a growing market. The group attributed the 13-percent spike in same-store sales last year, in part, to the singles segment.

The company said it was also looking at increasing the number of franchised outlets, as expands here and abroad.

"This shift will leverage on Max’s Group’s brand equity, operational expertise, and scale to propel store network expansion and boost fee-based collections, which generally equate to better profit translation," it said.


source: http://news.abs-cbn.com/business/05/10/1...ower-costs
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5-25

Max’s takes flight
‘The house that fried chicken built’ expands through franchising

Listed Max’s Group aims to further expand its footprint here and abroad.

Max’s Restaurant—“the house that fried chicken built”—is one of the most recognizable Filipino casual dining chains out there, having been around for the last 70 years.

It all started in 1945, right after World War II.

Maximo Gimenez, a Stanford-educated teacher, befriended the American occupation troops stationed in Quezon City.

The Americans regularly visited Maximo’s home for drinks and later on, insisted on paying for their drinks.

Maximo was thus inspired to open a café, which initially served chicken, steak and drinks.

Maximo’s niece, Ruby, who managed the kitchen, created a special recipe for fried chicken that became an instant favorite among the GIs.

Word spread about the yummy chicken—tender, juicy and crispy—and Max’s Restaurant was born.

Over the years, the group—now under the holding firm Max’s Group Inc. (MGI)—has expanded its portfolio.

The acquisition of publicly-listed Pancake House in 2014 paved the way for the expansion of its brand offerings, the group’s backdoor-listing on the stock market and the subsequent P3.5-billion public offering.

Apart from its flagship Max’s fried chicken chain and Pancake House, other popular brands are Yellow Cab Pizza, Krispy Kreme, Teriyaki Boy, Jamba Juice, Dencio’s and Sizzlin’ Steak.

By 2020, MGI expects to pivot from a mostly corporate-owned network structure to a more widely-franchised restaurant chain, thereby unlocking more efficiency, especially in labor management.

Its target is to increase its total restaurant network to 1,000 by 2020 from 673 as of end-2017. To achieve this, franchising will be a big part of the equation.

MGI president Robert Trota said that at present, 65 percent of the network is company-owned while 35 percent is franchised.

The goal is to reverse this mix in the next three to five years, Trota said in a press briefing after MGI’s recent stockholders’ meeting.

“As we regularize more people, your labor cost will start to increase, but as we pivot toward franchising, labor cost will not be part of the business anymore—which is what we wanted because we believe the franchisees have the ability to manage the people more effectively than us. [There’s] more agility also for them and for us, we’d like to focus more on driving the core business, and I think franchising is the model we want to use,” Trota said.

MGI is set to open 80 to 90 new stores this year, 74 of which will be in the local market.

Of the new local stores to be rolled out, two-thirds will be franchised stores in line with the pivot cited by Trota.

Household brand
“Our family wanted to venture into the food industry but we knew nothing about that business so we just decided to get a franchise. At least with that model, everything is already set up and we can leverage on the franchisor’s expertise,” said lawyer Diane Garcia, whose family is among the group’s biggest franchisees.

“Our first franchised brand was Max’s Restaurant, way back in 1998. We were one of the first five franchisees of the brand, and we decided to go for it because it is a household name. Everybody knows Max’s, The House That Fried Chicken Built. It has a strong recall across demographics,” she said.

Twenty years after the Garcias first signed with MGI, the family is now one of the group’s biggest partners with a total of 12 stores—three Max’s Restaurant branches in Luzon and one in Vancouver, and five Pancake House stores in the Greater Manila Area—and three more slated to open this year.

“I am very satisfied with the company’s culture when it comes to all aspects of the brand. They are able to address all that is necessary for a company to succeed. Product safety is a priority for them. While it does require a higher initial investment, it pays for itself in the end because customers are delighted and they do come back. They also value their employees by providing a good working environment and opportunities for career development. These are just some of the things that we believe in and something we practice in our own company as well,” Garcia said.

“Like any commercial venture, we experience the usual business bumps and trials, so it’s not always perfect, but it’s always resolved. That’s what matters. Our mutually beneficial relationship is built on trust and confidence, and I believe that all partnerships should have a foundation like this,” Garcia said.

Franchising cost
A potential franchisee needs to invest around P15 million to P18 million to own a Max’s franchise. The cost includes store construction, equipment and machinery, furniture and fixtures, initial hiring and training of manpower, preopening marketing support, operational support and franchise fee.

Meanwhile, the capital outlay to acquire a Pancake House or Yellow Cab franchise is P10 million to P12 million. For Teriyaki Boy, estimated investment cost is P8 million to P10.5 million while for Sizzlin’ Steak, the investment cost is P7 million to P9 million.

The estimated capital outlay to acquire and build a Dencio’s franchise is P15 million to P18 million, the same as the cost for a Max’s franchise.

Part of the estimated cost is the franchise fee. For the flagship Max’s, the franchise fee or the payment to join the system for the first time is P1.5 million plus taxes. Service fee is P750,000 plus taxes.

For all of MGI’s brands, the franchise term is 10 years, renewable for another five years.

For Pancake House, the franchise fee is P1 million plus taxes and service fee ranges between P250,000 and P400,000 plus taxes.

For Yellow Cab, the franchise fee is P1.25 million while for Teriyaki Boy, Sizzlin’ Steak and Dencio’s, the franchise fee is P1 million each plus taxes.

For Pancake House, Yellow Cab, Teriyaki Boy, Sizzlin’ Steak and Dencio’s, the service fee is between P250,000 and P400,000 plus taxes.

The term of franchise is 10 years, renewable for five years. Franchise renewal fee is P650,000 plus taxes.

Multibrand franchising
On franchising, MGI is pitching area development deals to franchisees, whereby franchise-holders with a proven track record will be offered the opportunity to operate franchises of other brands within the group.

In 2017 alone, a total of 40 franchise agreements were awarded across MGI’s brands, 15 of which were cross-franchise deals, which meant that existing partners of the company have decided to expand their business by opening at least one more store of another brand from the group.

Another 14 were given to current franchisees who signed up to add more branches of the existing brands they manage. There were 11 new partners who joined the system for the first time last year.

The Philippine Franchise Association estimates that the franchising industry will grow further—by 30 percent this year alone—and that food concepts such as Max’s will remain among the most popular.

Franchising is likewise MGI’s ticket to offshore expansion as 200 out of 1,000 stores expected by 2020 are expected to be overseas.

This year, MGI expects to secure agreements in two to four new territories.

It is also in talks to bring the Max’s brand to Australia and to bring another brand to Vietnam.

“MGI’s strength comes from the trust we build with our franchisees whom we consider valued partners. We look forward to growing with them and bringing onboard more like-minded entrepreneurs as we realize our vision of building loved brands,” said MGI chief operating officer Ariel Fermin.


source://business.inquirer.net/251367/maxs-takes-flight
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6-8

Max’s merges Teriyaki Boy, Yellow Cab brands

MAX’S Group, Inc. has secured the approval of the Securities and Exchange Commission (SEC) to merge wholly-owned subsidiaries Teriyaki Boy Group, Inc. and Yellow Cab Food Corp.

In a disclosure on Thursday, Max’s said Teriyaki Boy would be the surviving entity in the merger.

“The resulting transaction is part of continuing corporate reorganization activities to derive operational efficiencies,” Max’s said, adding that the merger will not cause any adverse impact to existing shareholders.

Max’s Group said last month it would refocus on its franchising strategy to take advantage of growth opportunities.

Max’s President Roberto Trota earlier said the group planned to reverse the percentage ratio of franchised versus company-owned stores. To date, 65 percent of its store network is company-owned while 35 percent is franchised.

For this year, Max’s is targeting to open as many as 90 new outlets under different brands, most of them to be located in the Philippines. The company aims to grow its network to 1,000 stores by 2020 from 679 currently, 57 of which are in various cities in North America, the Middle East and Asia.

In the first quarter of this year, Max’s opened 11 stores, including two Yellow Pizza outlets in Brunei and Vietnam.

Other than Yellow Cab and Teriyaki Boy, brands operated by Max’s include its flagship Max’s Restaurant, Pancake House, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Dencio’s, Meranti, Sizzlin’ Steak, Maple, Kabisera, Le Coeur De France and Singkit.


source: http://www.manilatimes.net/maxs-merges-t...ds/405723/
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8-2

...good news yan

Max’s Group merges two subsidiaries

MAX’S GROUP, Inc. (MGI) is merging two of its subsidiaries in line with its goal to maximize operational synergies across its businesses.

In a disclosure to the stock exchange on Wednesday, MGI said the Securities and Exchange Commission (SEC) has approved the merger of its wholly owned units, The Real American Doughnut Company, Inc. and Fresh Healthy Juice Boosters, Inc., with the former as the surviving entity.

“The resulting transaction is aligned with on-going reorganization initiatives to maximize operational synergies across the business and does not adversely impact existing shareholders,” the company said.

Last June, the listed casual dining restaurant operator also consolidated operations of its wholly owned subsidiaries Teriyaki Boy Group, Inc. (TBGI) and Yellow Cab Food Corp. TBGI was the surviving firm after the merger, which was also undertaken to improve operational efficiencies within the company.

MGI said it will be ramping up franchising efforts to fast-track its expansion to 1,000 stores until 2020, targeting to get a 65% to 35% mix of franchised versus company-owned stores. The company ended 2017 with a total of 673 stores located in the country, as well as overseas markets North America, the Middle East, and Asia.

It operates stores under various brands, namely Max’s Restaurant, Pancake House, Yellow Cab, Krispy Kreme, Jamba Juice, Teriyaki Boy, Dencio’s, Maple, Meranti, Kabisera, Le Coeur de France, Singkit, and Sizzlin’ Steak.


source: http://www.bworldonline.com/maxs-group-m...sidiaries/
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8-9

...aba ok ah Tongue

Max’s Group Q2 income up 34%

MAX’S Group, Inc. (MGI)’s net income expanded by 34% in the second quarter of the year, as the company implemented operational efficiency initiatives to help temper rising costs of raw materials.

In a statement issued Wednesday, the listed casual dining restaurant group said net income picked up to million for the April to June period, accelerating from the million posted in the same period a year ago.

Systemwide sales went up by 11% to P4.9 billion, as same-store sales growth stood at six percent. New store sales also grew by five percent during the quarter.

“The results underpin prior initiatives to reorganize ourselves and invest on building professional capabilities to spearhead long-term growth,” MGI President and Chief Executive Officer Robert F. Trota said in a statement.

MGI has been consolidating its businesses in the previous months, merging a number of subsidiaries to achieve more efficient operations.

“We have effectively regrouped into various strategic functional teams, each with defined and uniformed objectives that promote cohesiveness and productive interactions within the group. This setup has allowed us to leverage and benefit from additional operational efficiencies across the business,” Mr. Trota added.

MGI’s systemwide sales expanded by 12% to P9.3 billion in the January to June period.

First half revenues meanwhile grew by 11% to P6.7 billion, while net income was flat at P332 million during what MGI described as ”cautious” start to the year.

MGI opened a total of 21 new stores over the first six months of 2018, three of which are located overseas. The company now has 678 branches, with 54 across several sites in North America, the Middle East, and Asia.

The company expects to sustain its growth in the remaining half of the year, amid the continuing headwinds in the prices of raw materials.

MGI Chief Operating Officer Ariel P. Fermin noted the company will continue to pursue expansion via franchising. It earlier said that it targets to have a 65% to 35% mix of franchised versus company-owned stores by 2020 when it will have 1,000 stores.

MGI’s brands include Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Meranti, Sizzlin’ Steak, Maple, Kabisera, Le Coeur de France, and Singkit.


source: http://www.bworldonline.com/maxs-group-q2-income-up-34/
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8-13

...that's the way to go

Max’s Group to continue expanding in provinces

MAX’S GROUP, Inc. (MGI) is following the expansion of mall operators in the provinces to further grow its brands, citing the potential to enter untapped markets in the regions.

“There’s a lot of competition in Metro Manila, and there’s a lot of untapped markets in Visayas and Mindanao and wala pa kami dun. That’s why the more we try to drive our business to regions so that they can feel our presence already,” MGI President and Chief Executive Officer Robert F. Trota told reporters at the sidelines of the 25th National Retailers’ Conference in Pasay City last Thursday.

“A lot of the retailers are also going there,” Mr. Trota added, referring to the SM and Ayala groups which have mapped out their expansion to the provinces.

The listed casual dining restaurant operator has scheduled to open 50 more stores before the end of the year, located mostly in Luzon and Visayas, with two in Mindanao.

Overseas, MGI will open around six to eight stores in the Middle East and the United States.

The new stores will carry different brands under MGI such as Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Teriyaki Boy, and Dencio’s.

MGI has already opened 21 new stores in the first six months of 2018, bringing its total store count to 678 branches by end-June. Of this, 54 are located across several sites in North America, the Middle East, and Asia.

The company committed to spend P500 million in capital expenditures this year, less than half of which has already been used during the first semester.

“Most of it (the store openings) will happen on third and fourth quarter,” Mr. Trota said.

MGI grew its net income by 34% to P208.3 million in the second quarter of 2018, on the back of an 11% increase in systemwide sales to P4.9 billion during the period.

On a six-month basis, MGI’s net income was flat at P332 million, due to rising costs of raw materials. Systemwide sales meanwhile expanded by 12% to P9.3 billion for the January to June period.

The company has been implementing initiatives to have more efficient operations during the last semester through the consolidation of some subsidiaries. Mr. Trota said they have now completed the program.

“We’re done for the year, that’s just part of streamlining our operations, that’s where we get additional savings,” he explained.


source: http://www.bworldonline.com/maxs-group-t...provinces/
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10-29

...yan! ganyan!  Tongue

Max’s to open 3 stores in Visayas before end-2018

DAVAO CITY — Max’s Group, Inc. (MGI) is opening three new Max’s restaurants in the Visayas before the end of the year as part of its expansion outside Metro Manila.

Arianne Ross B. Pombo, MGI trade marketing manager for Visayas and Mindanao, said the new branches will be in Robinsons Galleria in Iloilo City, Robinsons Galleria in Cebu City, and SM Ormoc City.

“Nationwide, there are 196 active stores and we still have store openings for the rest of the year,” Ms. Pombo said in an interview during the launch of Max’s new product, the spicy fried chicken, at SM Lanang Premier here.

For Mindanao, she said expansion plans are still being assessed.

“In Mindanao, I can’t say yet if there will be new openings (soon)… still in the pipeline,” she said, adding that Max’s Restaurants in Mindanao “are doing well.”

There are currently eight branches in Mindanao consisting of two in Davao City, and one each in the cities of Zamboanga, Butuan, Tagum, Cagayan de Oro, Iligan, and Pagadian.

MGI, which also owns other restaurant brands such as Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Teriyaki Boy, and Dencio’s, opened 21 new stores in the first six months this year. 


source: https://www.bworldonline.com/maxs-to-ope...-end-2018/
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11-13

...nice earnings report pero stand by lang muna dito, monitor muna bago kumuha Tongue siguro 10.00 below

New stores push Max’s earnings 32% higher

MAX’S GROUP, Inc. (MGI) delivered a 32% profit increase to P118.5 million from July to September, as the company focused on improving productivity amid price pressures on raw materials.

On a nine-month basis, the casual dining restaurant operator’s net income reached P450.6 million, seven percent higher year-on-year.

System-wide sales went up by nine percent to P13.8 billion in the nine months ending September, on the back of same-store sales growth of 4%.

“We managed to extend our momentum from the second quarter into the subsequent period by centering on improving productivity measures and operational performance across the business,” MGI President and Chief Executive Officer Robert F. Trota said in a statement. “We plan to carry a similar mindset and at the same time ramp up new store openings ushering into the Christmas season.”

Restaurant sales went up by nine percent to P8.3 billion, as the company opened 38 new stores during the period. The new stores are equally split between company-owned and franchised formats. With this, franchising income grew by 24% to P535.2 million.

MGI ended September with a total of 681 stores worldwide, 57 of which are located across cities in North America, the Middle East, and Asia.

“Accordingly, we are determined and confident in our ability to finish the year on a strong note while putting ourselves in a unique position to grow further come 2019,” Mr. Trota said.


source: https://www.bworldonline.com/new-stores-...32-higher/
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