Yang, chairman of AGI, said the group is setting up a total of 24 new McDonald’s outlets across the country this year, with each store costing P25 million each. Another 24 new branches are slated for construction in 2007.
As of end-August, 15 out of the programmed 24 new stores were already completed.
"McDonald’s intends to beef up its presence in the Visayas-Mindanao areas to tap a wider clientele. "The fastfood business is still good. It is very much tied to the performance of the economy. We are optimistic the economy will get better. But it remains a very competitive business," said Yang.
McDonald’s is the world’s largest and most popular food service retailer with more than 30,000 stores in over 100 countries, including 249 throughout the Philippines.
AGI expects McDonald’s to be its major revenue contributor. Real estate activities are also expected to contribute additional revenues, particularly the Fort Bonifacio project.
The holding company intends to continue financing its ongoing real estate activities and capital expenditures from internally-generated funds. Last year, it raised P1 billion from a stock rights offering to finance the acquisition of a 49-percent stake in Golden Arches, the Philippine franchise holder of McDonald’s Corp.
AGI is the exclusive distributor of Campbell Soup Co.’s products and E&J Gallo Winery Inc. wines in the Philippines. It also handles the international marketing of McKester PikNik International Ltd.’s food products.
Aside from food products, AGI also has interests in property development and glass manufacturing. It is a joint venture partner of the Bases Conversion Development Authority and Megaworld Corp. in the Mckinley Hill mixed-use project in Fort Bonifacio.