SHAKEY’S Pizza Asia Ventures Inc. (Spavi) said core net income in 2025 declined by 20 percent as higher expansion and operating costs offset sales growth gains.
In a disclosure on Thursday, the company said core net income after tax fell to P952 million while reported net income dropped 32 percent to P816 million.
Systemwide sales (SWS) rose 14 percent year on year to P24.8 billion with consolidated revenues increasing 11 percent to P16.1 billion, largely driven by aggressive store expansion.
The company opened 351 new outlets during the year, bringing its global network to 2,970 stores, with roughly 16 percent of these located overseas.
It said same-store sales growth for the year remained muted at one percent, reflecting softer discretionary spending, particularly in the second half.
The fourth quarter likewise saw flat same-store sales despite the holiday season, with demand affected by inclement weather and weaker consumer sentiment.
Spavi President and CEO Vic Gregorio said the year reflected contrasting trends across periods.
“2025 was a tale of two halves. The first six months saw robust restaurant performance on stabilizing inflation and major campaigns like Shakey’s 50th anniversary. However, the second half of the year saw a pullback in discretionary spending,” he said.
The company added that its multi-brand portfolio helped cushion the slowdown. While casual dining brands such as Shakey’s saw softer demand for group occasions, value-oriented formats like Potato Corner kiosks performed strongly amid a shift toward more affordable options.
“While the group saw a lackluster holiday season in the fourth quarter, Spavi’s multi-brand portfolio gave business flexibility to capture demand, especially among value-seeking guests,” Gregorio said.
Margins came under pressure, as gross margin narrowed to 22.9 percent, down by 2.3 percentage points from the previous year.
This was attributed to expansion-related costs, including pre-operating expenses and depreciation, with operating expenses as a share of revenues also rising to 14.6 percent.
Despite the earnings decline, core earnings before interest, taxes, depreciation, and amortization edged up three percent to P2.7 billion.
Looking ahead, Gregorio said the company was focusing on strengthening resilience amid a more complex operating environment.
“Entering 2026, our operating landscape has become even more complex, muddied by geopolitical tension and its impact on the macroeconomic environment. Hence, we place our focus on what we can control: reinforcing business resilience,” he said.
Shakey's Pizza shares dropped P0.27 or 4.05 percent, to close at P6.40 each on Thursday.
