Golden Arches Development Corp., the local franchise holder of US fast-food chain McDonald?s, saw a 53.5 percent surge in its net income in the first semester as new meals, breakfasts lured more diners to its restaurants.
GADC, the joint venture between Bilyonaryos Andrew Tan and George Yang, posted P497 million in net earnings from January to June this year on the back of a 12.85 percent rise in revenues to P10.88 billion.
Systemwide same-store sales grew 10 percent year-on-year. Price increases were also strategically implemented in order to mitigate the impact of increase in cost of raw materials and to maintain the level of product quality.
For the second quarter, net profit escalated 60.45 percent with revenues expanding 7.45 percent quarter-on-quarter on new store openings, reimaging of existing restaurants, expansion of delivery, drive-thru and midnight hours, and introduction of new products.
The company opened 37 new restaurants ? 16 company-owned, 18 franchised, 3 joint ventures ? bringing its total network to 494 by the end of June.
GADC also attributed the growth to aggressive advertising and promotional
campaigns to support extra value meals.
New restaurants contributed about five percent to total system sales while business extensions comprised 24 percent of the total. Drive-thru made the biggest contribution accounting for 12 percent of total revenues.
