Higher sales boost Shakey’s profit

SHAKEY’S Pizza Asia Ventures Inc. said Tuesday that net income from January to September had risen by 64 percent to P746 million from P454 million, surpassing pre-pandemic levels.

This came after the food service group tallied a 40-percent growth in systemwide sales to P13.5 billion, driven by improved foot traffic that boosted dine-in sales.

“We are pleased to see all our brands growing in double-digits despite the prior year’s high base and the softer consumer sentiment in light of persistent inflationary pressures,” Shakey’s President and CEO Vicente Gregorio said in a statement.

Gross profits during the period were said to have ballooned by 35 percent year-on-year while gross margin softened to 21.4 percent due to global inflation.

Operating expenses as a percentage of sales, meanwhile, narrowed by 170 basis points to 10.7 percent on the back of “efficient spending and the operating leverage impact of higher sales.”

The company said it opened 85 new stores and outlets in the third quarter, bringing the new store count to 249 for 2023. As of end-September, the total global network had expanded to 2,021, Shakey’s said.

The company’s shares closed at P9.26 apiece on Monday.