Max’s Group’s net income rises to M

After expansion

Max’s Group, Inc. the country’s largest casual dining company, reported an 11 percent hike in net income to R421.73 million in the first nine months of 2017 from R380.56 million in the same period last year.

System-wide sales increased 14 percent to R12.60 billion for the nine months ended 2017 from R11.09 billion for the nine months ended 2016, boosting revenues by 12 percent to R9.04 billion from R8.09 billion.

Restaurant sales rose 13 percent to R7.59 billion from R6.72 billion driven by revenue contribution of new stores and healthy same store sales showing. Blended same store sales growth was at 5 percent for the covered period.

Commissary sales went up 5 percent to R1.02 billion from R971.03 million primarily indicating stable performance of the franchising business.

Meanwhile, revenues from new franchises, royalty and continuing license fees gained 8 percent to R432.72 million compared to R399.87 million for the nine months ended 2016 resulting from higher recurring income and new franchising contracts. (JAL)