Shakey’s nets P874 million in 2022

MANILA, Philippines — Shakey’s Pizza Asia Ventures Inc., a leading casual dining full-service restaurant chain and food service group in the Philippines, reported a net income of P874 million last year, already breaching the pre-pandemic income of P865 million in 2019.

This as the company posted a record-high financial performance for the year, based on its audited financial statements disclosed yesterday.

The company recorded system-wide sales (SWS) of P14.1 billion, doubling from 2021 and exceeding pre-pandemic sales by 36 percent.

In its report, Shakey’s said the company accelerated business recovery on the back of the resurgence in dine-in sales considering the Philippine economic reopening, the group’s store network expansion, and the acquisition of leading kiosk-based food brand, Potato Corner.

Shakey’s added Potato Corner to its brand portfolio in March last year.

Same-store sales growth clocked in at 37 percent for the year, the acquisition of Potato Corner notwithstanding.

In terms of profitability, Shakey’s gross margin expanded by 240 basis points to 25.6 percent despite an inflationary environment. Operating expenses as a percentage of sales contracted by 320 basis points and landed at 12.1 percent for the year.

“These improvements were driven by the company’s high degree of operating leverage, which kicked in with Shakey’s significant growth in sales, a favorable mix, and prudent cost management,” Shakey’s said.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA), meanwhile, reached P2 billion – an all-time high.

EBITDA margin stood at 20.3 percent, while net margin for the year was at 8.6 percent. Both saw an increase of 170 and 640 basis points, respectively.

Shakey’s has been building brands even during the pandemic, acquiring Peri-Peri Charcoal Chicken and Sauce Bar in 2019.

Peri-Peri is an emerging fast casual and full service restaurant brand in the Philippines. The company also entered into a master franchise agreement with Singapore-based Koufu Group Ltd in 2020 to bring the R&B milk tea brand to the Philippines.