Expenses from store closures and higher costs dragged the nine-month income of restaurant chain Max’s Group Inc. by 41 percent to P186 million, with the company grappling with low consumption.
Max’s, whose core brands include the flagship Max’s Restaurant, Pancake House and Yellow Cab, on Thursday reported flat revenues at P8.8 billion.
Article continues after this advertisementApart from store closure costs, Max’s said its net income was weighed down by higher consultancy and professional fees and an increase in administrative labor costs.
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General and administrative expenses rose by 2.7 percent due to fluctuations in foreign exchange rates and inflation, according to Max’s.
Article continues after this advertisementSystem-wide sales likewise saw a slight 0.6-percent decline to P13.72 billion due to a “structured wind down of underperforming stores.”
Article continues after this advertisementThe group cut its store network in the January to September period to 626 branches from 657 previously under what it called a “deliberate strategy” to refine and boost its retail trade area footprint.
Article continues after this advertisementThe company’s core brands drove growth, mainly in its overseas operations in Asia, North America and the Middle East.
“We are pleased with the progress we’ve made in the first nine months of 2024 despite some external challenges,” Max’s president and CEO Robert Trota said in a statement.
“Our strategic focus on optimizing our store network, improving operational efficiencies and investing in brand innovations will pave the way for sustained growth and consumer loyalty,” Trota added. INQ
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