Shakey’s Pizza Asia Ventures Inc.

...positive kahit nagtaasan ang bilihin ng raw materials nya

Shakey’s profit rises 7% in Q2

SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) grew its earnings by seven percent in the second quarter of 2018, as higher prices of raw materials tempered the double-digit increase in sales.

In a regulatory filing, the listed casual restaurant operator reported a net income of P212.41 million in the April to June period of 2018, higher than the P198.52 million it generated in the same period a year ago. This followed a 16% increase in systemwide sales — which measures sales from both company-owned and franchised stores — to P2.4 billion during the period.

Second quarter revenues meanwhile picked up 12% to P1.92 billion.

Same-store sales growth (SSSG) stood at nine percent for the three-month period, higher than the two percent increase seen in the same period in 2017.

This pushed SPAVI’s net income seven percent higher to P396 million in the six months ending June, against the P371 million it realized in the same period a year ago, following a nine percent uptick in revenues to P3.69 billion.

Systemwide sales climbed 13% to P4.6 billion, as same-store sales grew by five percent during the first semester. The SSSG for the six-month period matches the high end of SPAVI’s full-year SSSG target growth of 3-5%.

“Despite the slight compression in our margins year-on-year, we remain above average in terms of our profitability metrics and see this as an advantage in weathering competitive headwinds,” SPAVI President and Chief Executive Officer Vicente L. Gregorio said in a statement.

Mr. Gregorio noted the company expects challenges for the remainder of the year.

“However, we do expect managing higher input costs, a depreciating peso, and continuously rising inflation to remain a challenge in the short to medium term,” Mr. Gregorio said, saying that there are opportunities to maximize scale, increase efficiencies, and manage overhead costs in order to meet its double-digit earnings growth target for the year.

The SPAVI executive added the company will be launching new campaigns during the coming holidays to take advantage of the positive consumer sentiment, as well as to offset the seasonal slowdown caused by the rainy season.

SPAVI ended the first half of 2018 with 217 stores in the country after opening five new outlets. It looks to close the year with a total of 228 stores locally.

Overseas, the company has recently opened its first outlet in Dubai, which also marks its second international store after Kuwait. SPAVI is banking on the large population of overseas Filipino workers in these markets to drive sales.



...nice plan

Shakey’s targeting to open 18 to 20 new stores annually

SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) looks to have an equal mix of franchised and company-owned stores, as the company targets to open 18 to 20 new outlets annually over the next three years.

“We see a shift to a more 50-50 franchised to company-owned stores within the next couple of years,” SPAVI President and Chief Executive Officer Vicente L. Gregorio told reporters in a briefing after the company’s annual shareholders’ meeting in Ortigas Center yesterday.

The listed casual dining restaurant currently operates 217 stores nationwide, 60% of which are company-owned while 40% are franchised. Mr. Gregorio said the 50-50 target can be achieved as they expand toward the Visayas and Mindanao (VisMin) areas.

“VisMin continues to become the big potential moving forward. They’re under penetrated. We continuously receive inquiries there, we just opened a franchised store in Ormoc. And there are other second-tier cities that we are studying and evaluating,” Mr. Gregorio said.

Franchising a Shakey’s store entails a total investment of around P18-24 million, in line with the size and location. The franchise contract runs for a minimum of 10 years, and can be renewed based on the company’s evaluation. Depending on the store’s performance, the total investment can be recovered within three to five years.

SPAVI is ramping up the construction of more stores in the second half, as it targets to end the year with 228 outlets in the Philippines. Overseas, the company said it has received inquiries from entities in Saudi Arabia, Abu Dhabi, and Qatar. It is also in talks with potential partners in the Southeast Asian region.

“For overseas branches, we’re looking for the right franchise partner. We want to make sure we do it right,” Mr. Gregorio said.

Meanwhile, the company is also on the lookout for the acquisition of brands that could complement its existing business. Mr. Gregorio said the acquisition should be “something that is scalable,” and also caters to its current target market.

SPAVI’s net income rose seven percent to P396 million in the first six months of 2017, boosted by a 13% increase in system-wide sales to P4.6 billion during the period.

The company is banking on recording stronger sales in the second half of the year, in order to reach its target of a low double-digit profit increase for 2018. In terms of sales, SPAVI expects growth to be in the low teens.

“We are confident we can achieve the guidance. There is more emphasis on efficiencies. We’ll looking at a potential price adjustment for the second half to help mitigate the rising costs,” Mr. Gregorio said, noting SPAVI will implement a 1-2% price increase in the third or fourth quarter.

The company already raised prices by 3-4% last March amid higher costs of raw materials.


11-13 below 10.00 din kagaya ng MAXS Tongue

Shakey’s income rises 5% amid challenges

SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) saw a 5% profit increase to P138.52 million in the third quarter, according to a regulatory filing.

SPAVI’s revenues went up by 12% to P1.8 billion for the period.

This brought SPAVI’s net income for the first nine months of 2018 to P534.64 million, six percent higher year-on-year, after a 10% uptick in revenues to P5.49 billion.

SPAVI recorded same-store sales growth of five percent during the nine-month period, with the company noting a slight dip in the third quarter compared to the first half.

“Bad weather typically makes it difficult to for guests to come to our store, and this year’s rainy season seems to have been worse than the year before. Moreover, the inflationary environment in the Philippines has made consumers relatively price sensitive, hence the need for us to spend a bit more on value creating promotions,” SPAVI President and Chief Executive Officer Vicente L. Gregorio said in a statement.

SPAVI opened five new outlets in the third quarter, for a total of 222 stores by end-September. The company said it remains on track to close the year with 228 stores in the country.

“Even amidst short-term pressures on consumer sentiment, we continue to make investments in our store network — increasing the number of outlets overall and accelerating our presence in second and third tier cities,” Mr. Gregorio said.



...coast is clear na yata for accumulation dito sa pizza Tongue

Shakey’s to deliver 20 new stores

SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) plans to open 20 new stores this year, pushing its expansion outside Metro Manila as it sees more opportunities for growth in the provinces.

In a statement issued Wednesday, the casual dining restaurant operator said this will bring its total store network to 248 by 2019.

The listed firm is banking on higher consumer spending to support its expansion.

“We continue to see consumer spending fueling the Philippine economy, which is still one of Southeast Asia’s fastest-growing markets,” SPAVI President and Chief Executive Officer Vicente L. Gregorio said in a statement.

The target for store expansion this year matches the net openings the company had in 2018, 80% of which are located outside the National Capital Region.

“We are focused on expanding outside Metro Manila where we see great potential in terms of demand for the premium yet affordable dining experience we provide. We also tapped more local partners this year to run our provincial operations and to ensure that we have on-the-ground accountability even in farther-flung areas,” Mr. Gregorio said.

The company also noted that 75% of the newly-opened stores were franchised. Franchising a Shakey’s store entails an investment of about P18-24 million, depending on the size and location. SPAVI earlier said that the total investment can be recovered in three to five years’ time, with the franchise contract running for a minimum of 10 years.

In 2017, SPAVI said it looks to have a network of 300 stores within three years, further ramping it up to 500 within five years.

Aside from expanding its store network, SPAVI also redesigned interiors for the newer branches and launched new products to attract more millennials into their outlets.

“The brand has been able to stay relevant; it has gone through a lot of adaptations in response to the changing times, and our ability to touch lives has formed the foundation of our fiercely loyal base of guests,” Mr. Gregorio said.

SPAVI also owns the perpetual rights to franchise the Shakey’s brand in the Middle East, Asia excluding Japan and Malaysia, China, Australia, and Oceania. The company has at least 18 outlets in the pipeline in these locations over the next few years.

The company’s net income attributable to the parent went up six percent to P534.64 million in the first nine months of 2018, compared to P503.61 million in the same period a year ago. This followed a 10% uptick in gross revenues to P5.49 billion in the same period a year ago.


I really like the name of your company. The best thing about is that almost everyone in this world loves pizza. I am sure that you will reach the stock value that you have set in your plans. You should keep the forum members up-to date with the latest developments.
I was following industry rank for equities performance during last year, and must say that unfortunately, food industry did not performed well on a world scale. I can’t be sure what was the reason for such development, but investment in restaurant business might be risky business

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