Shakey’s nets P184 M, growth tempered at 6%

Full-service restaurant chain Shakey’s Pizza Asia Ventures posted a “tempered” earnings growth in the first quarter despite a double-digit sales increase.

Shakey’s said net income in the first three months improved six percent to P184 million from P173 million in the same period last year.

The firm said the net income increase was tempered relative to sales due to higher cost pressures compared to the year earlier.

Systemwide sales, a measure of total sales for both company-owned and franchised stores, grew 10 percent year-on-year to P2.2 billion.

“We are pleased to have achieved a double-digit sales growth for the first quarter of 2018 despite what is typically a seasonally weak quarter and a high base last year,” Shakey’s president and CEO Vicente Gregorio said.

“We continue to face a competitive environment, but this has been mitigated by the success of our own marketing initiatives and the efforts we have made to improve the overall Shakey’s brand experience. We look forward to positive momentum from here and expect improvements as we move to complete the year,” he added.

During the quarter, Shakey’s opened four new outlets, bringing its nationwide store count to 212.

The company intends to open 16 new branches within the year, with construction of several new stores already underway.

With the upcoming expansion, it remains on track to bringing its total Philippine store network to 228 by end2018.