McDonald’s projects 6% sales growth this year

MANILA, Philippines — McDonald’s Philippines expects to post more than six percent growth in sales this year as it expands its footprint to 670 outlets and brings back products in demand such as Twister Fries and Flavors of Japan burgers. 

After facing challenges last year in terms of the higher excise tax on sugar sweetened beverages under the government’s tax reform program and the high inflation rate, McDonald’s Philippines managing director Margot Torres said in an interview they have recovered and expect to post more than six percent growth in sales this year.

She said sales as of end-July were up six percent year-on-year. 

This year’s sales outlook is based on the planned store expansion. 

For this year, Torres said the company is set to open about 50 new outlets after recording a total store count of 620 in 2018. 

Half of McDonald’s Philippines total store count is company-owned, while the rest are franchised outlets.

Of the total store count for this year,  Torres said over 100 would be NXTGEN stores or McDonald’s outlets which provide a multi-point service platform with self-serving kiosks and a cashless payments system powered by PayMaya to provide convenience to customers. 

To date, there are 95 NXTGEN stores in the country, and the latest branch located at the Finance Center in Bonifacio Global City, opened last Friday.

Golden Arches Development Corp. (GADC) which is founded and chaired by George Yang, holds the master franchise for McDonald’s in the Philippines. 

Earlier, GADC said it is spending P3 billion for the expansion and conversion of stores into NXTGEN outlets this year.

While the company is opening both regular and NXTGEN stores this year, Torres said the aim in the coming years is to convert all outlets into NXTGEN.