Shakey's optimistic for second half amid challenges
Shakey’s Pizza Asia Ventures Inc., the Po family’s holding company for its restaurant businesses, still expects to grow its revenues and net income by “mid-teens” despite challenges posed by the higher interest and high inflation environment.
During the firm’s annual stockholders’ meeting, Shakey’s President Vicente Gregorio said “We see this year to be a better. Better performing in the second half where some of our key input costs are already expected to go down.”
“While we have been making strategic investments in our organization to prepare for our growth needs, we see the improving sales will be able to offset and provide us the coverage for fixed costs, and therefore, the margins base is expected to improve,” he added.
Growth will also come with the firm’s continued expansion of the store networks of its five brands as Gregorio said “We also will be opening more stores and expect that the network footprint will expand by at least 400 stores compared to just about 360 last year.”
In 2023, it had a store network of 2,141, composed of Shakey’s Pizza, Peri-Peri Charcoal Chicken, and Potato Corner.
“And, again, because of softening input costs. We believe margins will improve over the next half,” he said.
The firm also intends to expand overseas as Gregorio said “our investment in the global markets will continue. A lot of runway there, very long runway, and the opportunities abound and investments will continue throughout the year. With the expansion in the international markets ramping up the second half.”
He noted that the company is seeing very attractive growth potential in China and Malaysia, where the company has started to introduce its brands.
“And the first few stores in these areas have done very well. So this gives us further motivation and encouragement. And we continue to grow in the existing markets. I believe we're in 14 countries right now,” he said.
“So overall... The first half has its challenges. The second half is going to be better in our projections, and therefore, the growth is back,” he said.