Pancake House profit drops 18.2% in first quarter

MANILA, Philippines - Lorenzo-owned Pancake House Inc. posted earnings of P8.29 million in the first quarter this year, down 18.2 percent from the same period in 2009 on lower restaurant sales and increased operating expenses.

Pancake House, which has traditionally been associated with specialty pancakes and waffles, also owns and operates various restaurant brands directly or through its subsidiaries under the brands Dencio’s, Kabisera, Teriyaki Boy, Singkit, Sizzlin Pepper Steak and Le Coeur De France.

In a financial report submitted to securities regulators, Pancake House said consolidated revenues slightly declined to P432.71 million from P436.62 million. This was largely due to the two percent drop in restaurant sales to P345 million owing to the temporary closure of several outlets for refurbishment as well as the shutdown of non-performing outlets.

But commissary sales went up two percent to P67.41 million while franchise revenues slightly increased to P20.34 million.

Meanwhile, consolidated operating expenses rose 4.3 percent to P144 million, mainly due to the opening of additional outlets as well as higher occupancy and utility costs, which were market driven.

The group opened 19 stores in the first quarter, bringing its total branch network to 179 — Pancake House (80), Dencios (26), Teriyaki Boy (39), Sizzlin Pepper Steak (19), and Le Coeur de France (15).

Consistent with its thrust to grow the business in the casual dining industry, the company is looking at more acquisitions to further boost its brand image and brand selection. Pancake House is particularly keen on investing in brands in the fastfood service industry that will cater to the C and D markets.