Restaurant chain operator Shakey’s Pizza Asia Ventures Inc. said Wednesday it plans to open 400 new stores this year as it aims to maintain a double-digit growth in sales.
Shakey’s president and chief executive Vicente Gregorio said while the group remained “optimistic with a healthy dose of caution” for 2024, it is still on track to deliver a double-digit growth.
“Given that we have been operating in a strained consumer environment and are coming from a high base due to the reopening, we are grateful to be able to deliver double-digit topline growth, which we expect to be sustained for the balance of the year,” Gregorio said.
“Thus, overall, we are on track to deliver topline growth in the mid-teens territory, and we expect profits to grow at the same pace as sales,” he said.
Shakey’s saw its net income decline 15 percent in the first quarter of 2024 to P171.5 million from P200.8 million a year ago, driven by higher operating expenses due to investments in the organization and in sales-generating activities.
Systemwide sales amounted to P4.8 billion, up 15 percent from a year earlier, due to expansion program and sustained same-store sales.
The company benefited from gross margins improving by 160 basis points to 23.3 percent on the back of easing commodities since the end of 2023.
It opened 91 new stores in the first quarter to end with 2,232 stores and outlets as of end-March 2024.
Gregorio said the group’s network expansion program is progressing at a healthy pace. “We continue to capitalize on our brands’ attractive returns, which will support our group’s growth performance moving forward,” he said.
Shakey’s, the leading full-service chain restaurant in the country, had 268 outlets as of end-March, while Potato Corner had 1,874 stores and outlets.
The group’s non-fried chicken chain, Peri-Peri Charcoal Chicken and Sauce Bar, had 76 branches, while other incubating brands, R&B Milk Tea and Project Pie had a total of 14 units.
International stores represented about 13 percent of the group’s network.