Golden first quarter for Shakey’s Pizza
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Pizza parlour chain Shakey’s Pizza Asia Ventures grew its first-quarter net profit by 6.4 per cent to PHP184 million (US$3.5 million), even as higher input costs tempered the impact of double-digit growth.
Shakey’s grew its first-quarter systemwide sales by 10 per cent to PHP2.2 billion. This was mainly attributed to a 2 per cent growth in same-store sales and a continued store network expansion strategy.
Meanwhile, the company says earnings growth has been curbed by cost pressures relative to the previous year.
“We continue to face a competitive environment, but this has been mitigated by the success of our marketing initiatives and the efforts we have made to improve the overall Shakey’s brand experience,” says president/chief executive Vicente Gregorio.
For the three months to the end of March, the company grew total revenues by 6 per cent to PHP1.8 billion.
During the quarter, Shakey’s added four outlets to take its nationwide store count to 212. It intends to open another 16 branches and is on track to taking its total Philippine store network to 228 by year end.
Gregorio says the company is taking the brand to more locations beyond Metro Manila.
Questions & Answers
Q.How much profit did Shakey's Pizza make in the first quarter?
How much profit did Shakey's Pizza make in the first quarter?
Shakey's Pizza Asia Ventures reported a first-quarter net profit of PHP184 million, which represents a 6.4 per cent increase compared to the previous year. This figure is equivalent to US$3.5 million.
Q.What contributed to Shakey's Pizza's systemwide sales growth?
What contributed to Shakey's Pizza's systemwide sales growth?
The company's systemwide sales grew by 10 per cent, reaching PHP2.2 billion. This was primarily driven by a 2 per cent increase in same-store sales and its ongoing strategy of expanding the store network.
Q.Why has Shakey's Pizza's earnings growth been curbed despite sales increases?
Why has Shakey's Pizza's earnings growth been curbed despite sales increases?
Earnings growth has been tempered because of higher input costs and general cost pressures compared to the previous year. The company also faces a competitive environment.
Q.How many new outlets did Shakey's Pizza open in the first quarter and what is its future expansion plan?
How many new outlets did Shakey's Pizza open in the first quarter and what is its future expansion plan?
Shakey’s added four new outlets during the first quarter, bringing its nationwide total to 212 stores. The company plans to open another 16 branches to reach 228 stores in the Philippines by year end.