Max’s Group gets SEC OK to merge 11 subsidiaries

MANILA, Philippines - The Securities and Exchange Commission (SEC) has given the Max’s Group the go-signal to merge its 11 subsidiaries as part of its consolidation track.

In a disclosure to the Philippine Stock Exchange (PSE), the publicly listed restaurant operator said it would merge its 11 wholly-owned subsidiaries, with Max’s Kitchen as the surviving entity.

The other subsidiaries are Max’s Circle Inc., Max’s Makati Inc., Max’s SM Marikina Inc., Max’s Baclaran Inc., Max’s Food Services Inc., Max’s (Ermita) Inc., Max’s Franchising Inc., Chicken’s R Us Inc., Square Top Inc. and Max’s Express Restaurants Inc.,

“This merger is part of the continuing efforts of the company to streamline and rationalize the operations of the Max’s Group,” the company said.

Max’s Group’s board approved last April the merger of the subsidiaries with Max Kitchen Inc., which it plans to rename Max’s Restaurant Inc.

Company officials said the merger aims to create better synergies among the group, which is expected to translate to more efficient operations.

The consolidation, according to the company, would be done by standardizing procedures and streamlining back-end support.

The company has been growing its net income and has also been expanding overseas.

In the first half of the year, Max’s Group posted a net income of P247.74 million, marking a 561 percent increase compared to the same period last year.

During the first half, consolidated revenues increased 166 percent to P4.88 billion versus year-ago figures.

Top line growth was six percent despite ceasing operations of 10 branches of Le Coeur de France, which is set to undergo a major rebranding campaign to upgrade quality and service platform, the company reported.

Its revenues were driven by store sales which rose five percent to P4.14 billion during the period from P3.92 billion a year ago.

Franchise income, meanwhile, grew 47 percent to P190.16 million as of June 2015 from P128.97 million in the same period last year.

On the other hand, commissary sales remained relative flat at P559.63 million during the period.

Moving forward, Max’s Group said future openings would be located in prime growth areas featuring refreshed store look and design complemented by enhanced menu offerings.

As of end-July, Max’s Group has a total of 535 outlets.

It plans more store rollouts in the second half of the year in time for scheduled mall openings. The group is eyeing to open 80 to 90 stores this year, of which 18 have already been opened.

The Max’s Group brands of restaurants are Max’s Restaurants, Max’s Corner Bakery, Pancake House, Yellow Cab, Teriyaki Boy, Dencio’s, Kabisera ng Dencio’s, Sizzlin’ Steak, Le Coeur de France and Maple.

It also has international brands Krispy Kreme, Sizzling Steak and Jamba Juice.