Shakey’s hits record profit on business resurgence

RESTAURANT chain operator Shakey’s Pizza Asia Ventures Inc. said Monday it booked an all-time high net income of P874 million in 2022, fueled by the resurgence in dine-in sales and strong contribution from newlyacquired kiosk-based food brand Potato Corner.

Systemwide sales, which refer to total sales generated across the entire system including franchise and companyowned stores, doubled to P14.1 billion in 2022 from 2021 and exceeded prepandemic sales by 36 percent, the company said in a disclosure to the stock exchange.

System-wide sales in the fourth quarter doubled from the same period last year on increased consumer spending during the holiday season.

It said that despite the inflationary environment, gross margin expanded by 240 basis points to 25.6 percent.

Operating expenses, as a percentage of sales, went down by 320 basis points and ended at 12.1 percent for the year, driven by the company’s high degree of operating leverage and prudent cost management.

“The past three years tested our mettle as a company but the resilience of our brands, our stores and our people shone through,” SPAVI president and chief executive Vicente Gregorio said.

Gregorio said the group further strengthened its dominance with market share gains in the full-service chained restaurants category and sustained market share in full-service pizza. Its newly acquired brand, Potato Corner, also took the top spot in the kiosk segment. It also increased its footprint here and abroad.

The group’s global store network stood at 1,772 as of end-2022, including 68 Peri-Peri stores, 268 Shakey’s stores and 1,425 Potato Corner outlets.

It opened new Shakey’s stores in Singapore and Dubai, while Potato Corner opened in new markets including China, the United Arab Emirates and the United Kingdom.

“In the face of uncertainty, we remained true to our vision of building a strong roster of wow brands that can deliver long-term, sustainable growth, prudently investing in opportunities that came our way,” Gregorio said.

“In the near-term, while there is still uncertainty ahead, we are greatly encouraged by our growth momentum as of early 2023, a testament of our guests’ continued love and loyalty for our brands through thick and thin,” he said.