McDonald’s Philippines said it is gearing up to carry on its expansion as it sees the growth trajectory of the country’s informal dining out sector to remain driven by a young demographic and strong consumer spending.
This year, the company hopes to surpass the 65 record number of restaurants opened in 2024, and intends to hit its 800th-store milestone by the end of 2025.
Kenneth Yang, president and chief executive officer of Golden Arches Development Corp., (GADC), the master franchise holder of McDonald’s, said the company targets to maintain the growth trajectory of its topline, which has been running at about 15 percent over the last three years.
“We want to maintain that pace of growth,” Yang told reporters over the weekend.
Alliance Global Inc., the investment partner of GADC since 2005, said on its website McDonald’s Philippines posted more than P42.8 billion in revenues in 2023.
As of end-June 2024, its revenues reached P23 billion.
Alliance Global said the numbers were from GADC’s consolidated audited financial statement.
Yang said the Golden Arches will expand its yearly capital expenditures, currently between P3 billion and P5 billion.
“We’re very, very confident not only of the quick service industry, but even the informal sector, even the carinderia,” he said.
The president of Golden Arches sees demography as a significant contributing factor in all this, saying that even if the competition is intense, “we have to try and do our best to stay ahead of competition.”
On April 4, Golden Arches said it was granted another 20-year multi-unit franchise agreement by Chicago-based McDonald’s Corp. The franchise deal is valid until 2045.
“This milestone solidifies our commitment to growth and the stewardship of this world famous brand. This new term license is granted to my father and I, allowing us to own and also sub franchise McDonald’s restaurants throughout the country,” Yang said.
GADC’s top line is fed by existing stores and new restaurants, prompting the company to continue building new restaurants.
Most of the new locations will be in Luzon, particularly Southern and Northern Luzon but also in the Visayas and Mindanao.
GADC intends to maintain a 55:45 ratio of company-owned to franchise stores.
The company is investing to upgrade existing stores, especially the backend operations.
Founded by Yang’s father, George, GADC has been the master franchise holder of McDonald’s in the Philippines since 1981.
