MANILA, Philippines - Lorenzo-owned casual dining restaurant chain Pancake House expects its net earnings to grow 60 percent this year as it sees its system-wide sales surging 74 percent to P4.7 billion.
In an interview on Monday, Pancake House chairman Martin Lorenzo said the significant growth in the company’s earnings and sales would be boosted by the full-year contribution of Yellow Cab, a local premium pizza brand it acquired in August 2011, as well as new store openings.
Lorenzo said the company’s EBITDA (earnings before interest, taxes, depreciation and amortization) is forecast to rise to P550 million this year from P320 million in 2011.
According to Lorenzo, the group will pursue its aggressive branch expansion with around 50 more new stores to be put up to end the year with a total of 350. Half of the branches will be franchised while the other half will be company-owned, he said.
The company has set aside P160 million for its capital expenditures this year.
Aside from its flagship store Pancake House and Yellow Cab, the group also owns and operates various other restaurant brands, namely Dencio’s, Teriyaki Boy, Singkit, Sizzlin’ Pepper Steak, Le Coeur De France and The Chicken Rice Shop.
The group acquired Yellow Cab for around P800 million. The acquisition involved Yellow Cab’s 82-store network, 69 of which are company owned.
Yellow Cab operates not only in the Philippines but in the United States, Guam, Malaysia and Qatar as well.