SHAKEY’S Pizza Asia Ventures Inc. (Spavi) expects earnings recovery to be delayed this year amid restructuring efforts, store closures and cost pressures, key executives said on Wednesday.
The company said it had already surpassed the 3,000-store mark in 2026, compared with 2,970 stores as of end-2025, reflecting continued expansion of its network even as it rationalizes underperforming outlets.
Christopher Po, chairman of the company, told reporters the group was actively reviewing its store portfolio as part of its restructuring program.
“We’ve hit the 3,000 stores already this year,” Po said, noting that the company was closing underperforming locations as part of its ongoing rationalization efforts.
He noted that around 15 to 20 stores had already been closed year to date, with additional closures still under evaluation as the company continues to streamline operations.
Po described 2026 as a “restructuring year” and “streamlining year” as the company seeks to improve efficiency and eliminate underperforming assets across its portfolio.
Vicente Gregorio, Spavi president and chief executive officer, said the restructuring program was expected to weigh on earnings in the near term as the company absorbs closure-related and adjustment costs.
“We are already very much in the swing of restructuring mode,” Gregorio said, adding that profit recovery will likely lag topline growth this year.
He said the company was continuing to face cost pressures from utilities and transportation, which remain among the biggest operating expenses for restaurant businesses.
“These are two major cost items affecting the business,” he said.
On pricing, Gregorio said increases had been kept “quite measured” and remained in the low single-digit range, significantly below inflation of about 6 to 7 percent.
“We understand the need to provide value to guests,” he said, adding that pricing actions are being balanced with efficiency initiatives to protect margins.
Gregorio said the company was also focusing on cost optimization and store rationalization as key levers to offset margin pressures and improve operational efficiency.
“We’re trimming excess and becoming more efficient so we can come out leaner,” he said.
The company said same-store sales growth slowed to high single-digit levels in the second quarter, down from low-teens growth in the first quarter, reflecting softer momentum amid a volatile macroeconomic environment.
“There is still a fog of uncertainty,” Gregorio said, citing inflation and fuel price volatility as key risks to demand recovery.
Despite near-term pressure, the company said the restructuring program was aimed at strengthening core operations and positioning the business for a more stable and sustainable growth in the coming year.
Shakey’s shares climbed P0.10, or 1.64 percent, to close at P6.20 each on Wednesday.
