Shakey’s nine-month income up 11% on higher sales

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Metro Manila (CNN Philippines, November 8) — A pizza chain posted an 11-percent growth in its earnings during the nine months to September, thanks to higher sales from store expansions.

Shakey’s Pizza Asia Ventures Inc. said its income jumped to ₱594 million at end-September from ₱535 million a year ago.

Operating income also increased to ₱905 million during the period from ₱799 million in 2018, as basis points expanded to 70 on lower prices of key raw materials.

System-wide sales, consists of company-owned and franchised stores, grew by 9 percent to ₱7.4 billion from ₱6.8 billion reported in 2018, driven by new store openings and consolidation of Peri-Peri Charcoal Chicken.

The listed casual restaurant operator acquired the brand in June, giving the company additional 23 stores. The third quarter of 2019 saw the first full quarter of consolidation for Peri-Peri.

Meanwhile, higher prices and a tighter competition caused Shakey’s same-store sales growth (SSSG) to remain flat during nine-month period.

“Same-store sales remain challenged by promotion-heavy programs of various industry players. We are also lacking this year the positive SSSG impact of price increases, which had contributed close to half of same-store sales growth in previous years,” Shakey’s President and CEO Vincent Gregorio said in a statement.

Gregorio, however, said the static growth was temporary, adding that the company remains “optimistic about the long-term prospects of food service in the Philippines.”

All in all, the company is looking to close 2019 with a total of 282 outlets, comprised of 31 Peri stores and 251 Shakey’s both locally and internationally.

Shares at Shakey’s closed at ₱11.92 apiece Friday from the previous day’s ₱11.82.