{"id":330467,"date":"2024-11-18T15:35:31","date_gmt":"2024-11-18T07:35:31","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330467"},"modified":"2024-11-18T15:35:34","modified_gmt":"2024-11-18T07:35:34","slug":"trade-the-news-maxs-income-plummets-68-3-amid-store-closures-higher-costs","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-maxs-income-plummets-68-3-amid-store-closures-higher-costs\/","title":{"rendered":"Trade the News: MAXS income plummets 68.3% amid store closures, higher costs"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>NEGATIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>Max’s Group Inc.<\/td><\/tr>
Stock Code<\/strong><\/td>MAXS<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 8.80<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Max\u2019s Group, Inc. (MGI) saw a 68.3% decline in its third-quarter net income to P22 million from P68 million last year.<\/p>\n\n\n\n

Revenue rose by 2.3% to P2.97 billion from P2.91 billion a year ago, MGI said in a stock exchange disclosure on Thursday.<\/p>\n\n\n\n

System-wide sales fell by 1.6% to P4.54 billion while earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 33.4% to P286 million.<\/p>\n\n\n\n

\u201cMGI achieved a 1.7% blended same-store sales growth (SSSG) in the third quarter. Key brands Max\u2019s Restaurant, Pancake House, and Krispy Kreme posted an SSSG ranging from 2.4% to 6.9%, underscoring the resilience of the group\u2019s core offerings even in price-sensitive markets,\u201d it said.<\/p>\n\n\n\n

For the first nine months, MGI recorded a 40.9% decline in net income to P186 million while EBITDA fell by 24.5% to P1.08 billion.<\/p>\n\n\n\n

\u201cThe dip in net income and EBITDA is mainly due to one-time store closure expenses, higher consultancy and professional fees associated with process improvements and system efficiencies and increase in administrative labor costs,\u201d MGI said.<\/p>\n\n\n\n

Nine-month revenue rose by 0.8% to P8.82 billion on optimization of retail trade areas, focusing on high-potential locations while closing suboptimal stores to strengthen the company\u2019s store network for future expansion.<\/p>\n\n\n\n

System-wide sales dropped by 0.6% to P13.72 billion due to the structured wind down of underperforming stores.<\/p>\n\n\n\n

\u201cWe are pleased with the progress we\u2019ve made in the first nine months of 2024, despite some external challenges. 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,\u201d MGI President and Chief Executive Officer Robert Ramon F. Trota said.<\/p>\n\n\n\n

\u201cWe are confident that MGI will continue to thrive and meet our long-term goals,\u201d he added.<\/p>\n\n\n\n

As of end-September, MGI operates 567 locations in the Philippines and 59 stores internationally, with 17 new stores opened and key locations renovated during the period.<\/p>\n\n\n\n

MGI\u2019s brand portfolio consists of Max\u2019s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max\u2019s Corner Bakery, and Teriyaki Boy.<\/p>\n\n\n\n

(News Source: Business World<\/a>)<\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Take advantage of the price opportunity that might arise when the news hits. Trade the news!<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1371],"tags":[],"class_list":["post-330467","post","type-post","status-publish","format-standard","hentry","category-trade-the-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330467","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=330467"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330467\/revisions"}],"predecessor-version":[{"id":330469,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330467\/revisions\/330469"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}