Shakey’s Pizza Asia Ventures, Inc., one of the leading chain restaurants and food groups in the Philippines, still expects to post double-digit sales and core profit growth this year despite reporting a lower net income and flattish core earnings for the first half.

In a disclosure to the Philippine Stock Exchange, the firm said core net income inched up two percent to ₱427 million in the first semester of 2025 due to investments in new store openings.

However, due to a prior period one-off adjustment, headline net income fell 17 percent versus the previous year.

SPAVI President and CEO Vicente Gregorio said they are still aiming to end the year with double-digit growth in both sales and core profit.

To support this, the Group is gearing up to accelerate its network expansion with around ₱1.0 billion in capital expenditures to hit 430 net new stores by the end of 2025.

“As we close off the first six months of 2025, we foresee a more back-ended trajectory this year, with a significant portion of our investments coming in the second half to drive this growth.

“While we continue to navigate a fluid operating environment with shifting consumer sentiment, we’re encouraged by improving input costs, the seasonal uplift of the fourth quarter, and the momentum that new store openings will create,” he said.

Gregorio noted that, “It won’t be without challenges—but with a focused strategy and our guest-centered ethos, we are building towards a solid 2025 finish. Ultimately, we’re staying the course and investing accordingly in our pursuit of long-term sustainable growth.”

SPAVI reported a 15 percent growth in system-wide sales (SWS) to ₱11.6 billion at the half-year mark. Revenue reached ₱7.4 billion, up 13 percent versus the first six months last year.

For the second quarter, the firm said it posted a 13 percent YoY uptick in both SWS and revenues, amounting to ₱6.0 billion and ₱3.9 billion respectively.

On a sequential basis, topline demonstrated fair progress with SWS up by eight percent, while revenues grew by 11 percent.

The Group achieved broad-based, volume-led growth across its multi-brand portfolio, fueled by continued investments in store network expansion as well as brand building.

SPAVI saw its store footprint increase to 2,718 total units across restaurants and kiosks globally, reflecting the 99 new stores that opened in the first six months of the year.

Meanwhile, second quarter same store sales growth (SSSG) clocked a moderate improvement at three percent, up from last quarter’s two percent – the outcome of steady investments to scale its brands.

“Our first half results reflect our strategic thrust to expand our reach and strengthen our brands, even in a soft consumer environment. Since March of last year, we’ve opened 486 new stores globally – significantly contributing to our sales growth,” said Gregorio.

He added that, “While inflation has started to ease, guests remain mindful of their spending. That’s why we focused on strengthening brand relevance and delivering superior value, leading to an improving quarterly same store sales growth.”

In terms of profitability, first half 2025 gross margin softened by 200 basis points (bps) YoY to 22.3 percent. This was influenced by the impact of product quality improvements, partially tempered by improving commodities, and investments in network expansion including renovations and pre-operating expenses of new stores.