Figaro [FCG 0.83 7.8%] [link] Q2/22 profit of P182 million, up 69% from Q2/21 profit of P107 million, and up 118% from Q1/22 profit of P83 million. FCG reported a 79% increase in system-wide sales over the first 6 months, which FCG attributes to opening new stores.
This was partially offset by a 114% increase in operating costs, which FCG blamed on “massive store opening activities” and “IPO activities” that resulted in higher overhead costs.
Of the P1.49 billion in FCG’s H1/22 restaurant sales, 90% came from Angel’s Pizza, 6% came from Figaro Coffee, and 4% came from Tien Ma’s Taiwanese Cuisine.
From a geographical perspective, FCG reported a lower concentration of revenues from locations in the National Capital Region in 2022, with NCR FCG stores earning 72% of FCG’s 2022 income, down from 82% in 2021.
The remaining 28% of FCG’s 2022 revenue came from “Provincial Areas”. FCG is owned by Jerry Liu, and is a sister company to Cirtek [TECH 3.00 2.3%].
FCG’s fiscal year starts on July 1, so what would be “Q4” to most companies using a fiscal year that starts on January 1 is actually “Q2” for FCG.
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FCG started 2022 with 99 stores split between its various restaurant concepts, and it ended the year with 150. That’s a significant increase that will make a huge difference in revenue, profits, and operating costs.
All of those changes were well-noted by FCG. That’s good.
Unfortunately, though, the stat that I look for from growing restaurant companies is something called “same store sales”, which measures the percentage change in revenue for stores that have been open at least a year.
It really gets down to basics and gives us a better sense of how the company is performing at its “real” job (running a restaurant, not building stores), and it helps put these goofy revenues and profit beats into perspective.
Make no mistake, if FCG is making more money opening stores than it did before, that’s good.
But for a company that plans to open another 150 stores by 2029, I feel like it should be giving us better insight into how the established locations are actually doing.
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