Shakey’s Pizza Q1 profit falls 27% on higher costs

SHAKEY’S Pizza Asia Ventures, Inc. posted a 27% decline in first-quarter attributable net income to P133.8 million from a year earlier, as higher costs and weaker consumer demand weighed on earnings.

In a statement on Thursday, the company said profits were affected by expansion spending, demand-generation campaigns, softer sales and one-off costs tied to network restructuring.

“We are proactively optimizing general and administrative costs and driving savings across operations,” Shakey’s President and Chief Executive Officer Vicente L. Gregorio said.

He added that the company might implement measured price increases to manage rising operating costs while remaining sensitive to customers.

System-wide sales rose 14% to P6.4 billion, driven mainly by store expansion.

Revenue increased 13% to P4 billion from P3.56 billion a year ago, although same-store sales were flat during the quarter.

Shakey’s said its global store network had reached 3,039 outlets as of end-March after opening 69 stores during the period.

The company said product launches and seasonal promotions helped support demand.

Mr. Gregorio said the group is becoming more selective in opening stores, focusing on locations expected to deliver stronger returns.

Shakey’s shares fell 0.32% to close at P6.30 each on the local stock exchange. — Alexandria Grace C. Magno