Shakey's 'cautiously optimistic' to hit mid-teens growth in 2024

Chain restaurant and food service group Shakey's Pizza Asia Ventures Inc. saw a softening in its first-half net income amid inflationary conditions, but the company remains "cautiously optimistic" that it would hit its mid-teens growth outlook for the year.

Shakey's said its first-half net income softened to P421 million, while its system-wide sales increased by 14% to P10.1 billion as it recorded a 36% increase in operating expenses as it opened 210 units during the semester to bring its global network to 2,351 stores.

"We are grateful to be able to sustain our double-digit growth trajectory in these trying times," Shakey's president and chief executive officer Vicente Gregorio said in an emailed statement.

"Our guests are more cautious because of persistent inflationary pressures, which is why it was very uplifting to see the celebratory atmosphere during special occasions such as Mother's Day, Father's Day, and the graduation season," he added.

Inflation came in at 3.7% in June, snapping a four-month acceleration streak. It has since accelerated to a nine-month high of 4.4% in July.

First-half gross margins expanded by 60 basis points to 24.3%, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at P985 million.

"(W)e remain cautiously optimistic with our mid-teens growth outlook in both top and bottom line. Ultimately, at the core of our ambition as a guest centric organization is the desire to wow our guests by giving them great and unforgettable experiences with our brands, whether in good times or in bad, through thick and thin," Gregorio said.

Shakey's Pizza Asia—which earlier operates the brands Shakey's, Potato Corner, Peri-Peri Charcoal Chicken and Sauce Bar, R&B Milk Tea, and Project Pie—earlier said it plans to expand its network by 400 units this year.

Shares in the company were last traded at P9.59 apiece, up by a centavo or 0.10% from Tuesday's finish of P9.58. — VDV, GMA Integrated News