Yellow Cab Pizza Co. (Photo credit: Wikipedia)Lorenzo-led Pancake House Inc. more than doubled its first semester earnings to P49.9 million on stronger margins due to the hefty contribution of its New York-style pizza chain Yellow Cab as well as from the continued expansion of its flagship brand Pancake House.
Consolidated revenues in the first six months of the year surged 86 percent to P1.67 billion, mainly driven by new store development and same store sales growth. Total system-wide sales (total sales to customers both from company-owned and franchised stores) increased 77.19 percent to P2.02 billion.
Store sales grew 110.8 percent to P1.4 billion while commissary sales rose 10.9 percent to P210.58 million. Franchise income likewise went up to P60.06 million from P46.08 million due to increased number of franchisees and sustainable growth in same store sakes of franchisees.
Consolidated earnings before interest taxes, depreciation and amortization (EBITDA) amounted to P198 million, up 80 percent year on year. EBITDA measures the company’s ability to earn from operations.
Total costs and expenses, however, jumped 99.8 percent to P1.6 billion because of higher occupancy costs such as utilities, rent, and electricity, among others. The increase was also due to expanded central office operations.
The group had a total of 268 stores across the country as of June 30 this year, broken down as follows: Pancake House 96, Yellow Cab 89, Dencios 15, Teriyaki boy 33, Sizzlin Pepper Steak 18, Le Coeur de France 13, and The Chicken Rice Shop 4.
In the same period in 2011, the group had only 178 stores.
The group expects to end the year with around 300 stores as it expands its presence in the so-called New Wave Cities such as Cebu, Davao, Laoag and Subic.
Pancake House expects its net earnings to grow 70 percent this year from P90.16 million in 2011 largely due to the full-year contribution of Yellow Cab. Its EBITDA is likewise seen to rise to a range of P330 million to P570 million.
To ensure continued growth, the group is embarking on an aggressive expansion campaign overseas with plans to build 300 stores in five to seven years. It wants to further widen its presence in the Middle East as well as enter new markets like Indonesia and China.
