McDonald’s PH aims at P5-B capex for expansion
McDonald’s Philippines is looking to spend at least P5 billion this year to expand its network past the 800-store mark and upgrade existing branches.
Kenneth Yang, president and CEO of McDonald’s master franchise holder Golden Arches Development Corp. (GADC), told reporters last Friday they were considering opening more than 65 stores this year.
“We will continue to build new restaurants all over the Philippines,” Yang said during a press briefing. “We grow through our company-owned stores, but also through our franchise restaurants.”
McDonald’s Philippines ended 2024 with 792 branches across the country, with GADC on its way to its 800th store this year.
Company-owned stores accounted for around 55 percent of the total McDonald’s Philippines stores, while the rest are franchises, the CEO said.
He added that it cost up to P70 million to build each branch.
Outside NCR
According to Yang, their new stores will be “scattered all over the country” rather than focusing on the National Capital Region.
“As the country is growing and progressing in these areas, that’s where we will go,” he said.
Within two years, the company aims to have at least 1,000 stores in its Philippine network.
This comes after Chicago-based McDonald’s Corp. granted a 20-year franchise term to the Yang family, allowing them to own, operate and sub-franchise the American fast-food chain in the Philippines.
GADC chair George Yang has held the master franchise since 1981, when the first McDonald’s branch was opened along Morayta Street in Manila.
George Yang currently holds a 51-percent stake in GADC, while Alliance Global Group Inc., the conglomerate led by billionaire Andrew Tan, owns the remaining 49 percent.
In the first nine months of 2024, GADC booked a 12-percent climb in sales to P34.6 billion on the back of gains from its store expansion program.
This year, Kenneth Yang said they were expecting continued growth in the country’s quick-service restaurant industry, banking on “growing demographics” to drive demand.
“The competition is intense … we have to try and do our best to stay ahead of competition,” he added.
