Shakey’s Pizza targets to build 16 more stores this year
Shakey’s Pizza Asia Ventures is targeting to build 16 more stores this year following the successful opening of its four new outlets during the first three months of the year.
During the first quarter, Shakey’s said it has opened four new outlets, bringing its nationwide store count to 212.
For the balance of the year, the company intends to open another 16 new branches with construction of several new stores already underway.
With this, the company remains well on track to bringing its total Philippine store network to 228 by end-December 2018.
“We are further expanding our reach as we bring the Shakey’s experience to more and more locations beyond Metro Manila. The bulk of the 20 new stores we are opening this year are outside the first-tier cities, where urbanization and incomes continue to rise,” said Shakey’s President and CEO Vicente Gregorio.
In terms of profitability, Shakey’s saw its consolidated gross profit rise by 2 percent to P509 million during the first quarter, while its earnings before interest, taxes, depreciation and amortization grew at a faster clip of 5 percent to P344 million.
“We continue to implement efficiency measures to cushion the impact of higher costs and inflationary pressures. Moreover, with the expected pick-up in sales moving forward, we will likewise see an uptick in our margins as we maximize operating leverage and spread out fixed costs,” said Gregorio.
For the rest of 2018, the Company expects an increase in same store sales growth, targeting a full year range of between 3 to 5 percent.
“Though we did anticipate a relatively slower start to the year, we now expect faster growth in succeeding periods as promotional and pricing strategies have already been put into place,” Gregorio added.