Pancake House pays P800 million to acquire Yellow Cab
September 5, 2011
The Yellow Cab pizza chain is now owned by the Pancake House Group.
Most Filipinos would probably be surprised about the news because a lot of people thought Yellow Cab is an international brand. In reality, though, Yellow Cab is a Philippine pizza chain that merely successfully marketed itself as a New York City-based franchise.
Now, Yellow Cab is a wholly-owned subsidiary of the Pancake House Group (Stock Code: PCKH) after the latter paid the owners of the local pizza company a total of P800 million.
The acquisition adds 82 outlets of Yellow Cab to the Pancake House network, currently totaling 174 branches nationwide of Dencio’s, Le Coeur de France, Teriyaki Boy, Sizzlin’ Pepper Steak, Singkit, 88 Just Asian, The Chicken Rice Shop and Kabisera.
According to the company, Yellow Cab will most probably expand to the provinces in the next 3-5 years, particularly in cities such as Baguio, Subic, Pangasinan, Cavite, and La Union. The expansion plan is expected to generate additional revenues to the Pancake House Group at the earliest by the end of the year.
In 2010, Yellow Cab booked total sales of P1.32 billion, operating income of P296 million and net income of P31.62 million.
The Pancake House Group in 2010, meanwhile, registered consolidated sales of P1.84 billion, operating income of P56.5 million and net income of P110.7 million. Net income increased due to a one-time gain of P74.8 million resulting from the sale of two company-owned outlets operating under the Dencio’s trade name.
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