Shakey’s PH nets P862M

Shakey’s president Vicente Gregorio

Po family-led restaurant chain operator Shakey’s Pizza Asia Ventures Inc. grew its 2019 net profit by 2 percent to P862 million, driven by a double-digit growth in system-wide sales.

The company’s bottomline growth was tempered by the shift to Philippine Financial Reporting Standard (PFRS) 16 at the start of 2019 as the new framework had the effect of accelerating the recognition of non-cash expenses.

Excluding the impact of PFRS 16, Shakey’s Pizza’s net profit would have been P923 million, up by 9.9 percent.

The company’s systemwide sales – a combined measure of company-owned and franchised stores’ sales – grew by 11 percent to P10.4 billion for the year. Same-store sales growth for the full-year stood at 1 percent.

Shakey’s Pizza ended the year with 276 stores throughout the Philippines, comprised of 246 Shakey’s and 30 Peri-Peri Charcoal Chicken outlets. The group had a net opening of 18 stores last year, 17 of which were opened outside Metro Manila, while seven new Peri-Peri stores came from the acquisition of this business mid-year.

During the ongoing lockdown period to combat the coronavirus pandemic, Shakey’s Pizza closed majority of its stores but maintained partial delivery and take-away service operations.

Select Shakey’s and Peri outlets remain operational for delivery and carry-out services utilizing a limited menu, shortened hours, and a reduced and voluntary workforce. It is looking to gradually re-open more select outlets over the next few weeks, while strictly implementing enhanced safety protocols that are aligned with World Health Organization (WHO) recommendations.

“This is an extraordinary time, but we are able to manage through by prioritizing a strong cash and liquidity position, and slowly increasing delivery and carry-out accessibility,” said Shakey’s Pizza president and chief executive officer Vicente Gregorio.

For its employees, the company has implemented a paid “COVID leave”, facilitated the early release of 13th month pay, and distributed various food packs.

“Amidst the short-term disruptions, we are also readying ourselves to bounce back in what we believe will be a new post-COVID’ world where a strong brand and delivery presence is key. Though the full effects of COVID remain unknown, we are firmly in this business for the long run benefit of all our stakeholders, including our employees and our guests, and we believe that the structural growth story of dining out in the Philippines is still intact,” Gregorio said.