SHAKEY’S Pizza Asia Ventures Inc. (Spavi) on Thursday said that its earnings in the first three months of the year declined 17 percent, dragged by expansion investments and weak discretionary spending that failed to offset a double-digit increase in systemwide sales.
In a statement, Shakey's said headline net income after tax slumped 27 percent year on year to P134 million while core net income after tax, ex-one-off network restructuring costs, dipped 17 percent.
Revenues reached P4.0 billion, up 13 percent from a year ago, while systemwide sales were up 14 percent, reaching P6.4 billion as of end-March 2026.
Shakey’s President Vic Gregorio said “Entering 2026, we prepared for a tough environment, hich is now exacerbated by the prolonged geopolitical conflict in the Middle East. While efforts are underway to navigate headwinds in pursuit of growth, they come with near-term impacts on our bottom line.”
The company said top-line performance in the quarter was backed by its “strategic thrust” to expand its global footprint.
During the period, the company opened 69 new units, pushing its global network to 3,039 stores and outlets.
Earnings before interest, taxes, depreciation, and amortization (Ebitda) rose 7 percent, suggesting underlying cash generation remained intact even as margins narrowed.
Softer profit margins reflected the pressure from expansion, with core net profit margin easing to 3.8 percent as advertising and promotional spending increased alongside new store rollouts.
Milestones during the quarter included the opening of its 3,000th store in Arca South, a 74-hectare mixed-use estate by Ayala Land Inc. located in Taguig.
Its kiosk business, Potato Corner, also entered Laos during the quarter, its 17th overseas market.
Shakey’s said it will continue balancing growth investments with cost discipline as it refines its network strategy and focuses on more accretive store openings amid a challenging consumption backdrop.
On Thursday, the company’s shares slipped P0.02, or 0.32 percent, to close at P6.30 each.
