Insider Spotlight
The listed restaurant operator posted net income of P816 million for the year ended December, down 32 percent year-on-year, while revenues rose 11 percent to P16.10 billion. Systemwide sales increased 14 percent to P24.80 billion, largely driven by new store openings rather than organic demand.
Why it matters
Margins came under pressure as costs rose alongside expansion. Gross margin declined by 2.3 percentage points to 22.9 percent, while operating expenses increased to 14.6 percent of sales.
Core net income after tax fell 20 percent to P952 million, even as earnings before interest, taxes, depreciation and amortization (EBITDA) grew 3 percent to P2.70 billion, reflecting the impact of pre-operating and depreciation expenses tied to new stores, according to a company statement.
By the numbers
The gap between sales growth and earnings highlights a volume-led strategy. The group added 351 stores in 2025, bringing its global footprint to 2,970 locations, but same-store sales growth was just 1 percent amid weak consumer demand. Fourth quarter trends were similarly subdued, with flat comparable sales despite the holiday season.
Zoom in
Performance varied across formats. Casual dining brands such as Shakey’s saw softer demand for group occasions, while value-oriented kiosk concepts like Potato Corner performed strongly, helping cushion the impact of cautious spending.
What they’re saying
CEO Vic Gregorio said the year was “a tale of two halves,” with solid first-half performance giving way to a second-half slowdown as discretionary spending weakened.
The bottom line
Entering 2026, the company said it will focus on reinforcing business resilience by keeping core brands relevant, optimizing its network while pursuing expansion, and maintaining cost discipline amid a more complex operating environment. —Princess Daisy C. Ominga |Ed: Corrie S. Narisma
