Shakey’s 'reset' strategy lifts Q3 2026 core profit by 11%

Insider Spotlight

• Shakey’s Pizza Asia Ventures Inc. reported an 11-percent increase in core net income to P247 million in Q3 2026, supported by improving sales and operating efficiencies
• Nine-month reported net income fell 46 percent to P306 million as restructuring costs weighed on profitability
• Systemwide sales grew 12 percent to P19.8 billion in the first nine months, while the global network reached 3,106 stores and outlets
  
  
  
  

Shakey’s Pizza Asia Ventures Inc. (SPAVI) returned to core earnings growth in the third quarter of 2026 as improving same-store sales, tighter spending, and operational efficiencies helped offset restructuring costs and inflationary pressures.

Core net income after tax rose 11 percent year-on-year to P247 million, marking a 51 percent improvement from the previous quarter.

However, reported net income declined 67 percent to P75 million during the quarter, reflecting non-recurring restructuring expenses associated largely with the rationalization of its Peri-Peri Charcoal Chicken & Sauce Bar network.

Stronger customer demand

For the first nine months, reported net income fell 46 percent to P306 million, while core earnings declined 13 percent to P563 million.

Despite weaker profitability, systemwide sales increased 12 percent to P19.8 billion, while consolidated revenues grew 10 percent to P12.4 billion.

Third-quarter systemwide sales climbed 11 percent to P6.8 billion, with revenues rising 13 percent to P4.2 billion.

Same-store sales improved 3.5 percent following a largely flat first half, supported by stronger customer demand for value-oriented offerings.

Supply chain efficiencies

Gross margin improved to 21.2 percent in the third quarter, up one percentage point sequentially, driven by supply chain efficiencies, measured pricing adjustments, and higher sales volumes.

Operating expenses as a percentage of sales eased to 13.9 percent, down 0.3 percentage points quarter-on-quarter.

The group added 136 net new stores and outlets during the nine-month period, including 32 in the third quarter, bringing its global network to 3,106.

Operating cash flow reached P1.6 billion, while free cash flow totaled P1.1 billion.

Disciplined expansion

SPAVI president and CEO Vicente Gregorio said the company would continue prioritizing profitability, operational efficiencies, and disciplined expansion.

“We are pleased to see the early gains from these strategic choices taking shape and aim to stay on course as we build a solid foundation for the Group," he said in a press statement.

The company expects seasonal demand to support restaurant and kiosk sales in the fourth quarter as it continues restructuring initiatives aimed at improving long-term profitability. —Vanessa Hidalgo | Ed: Corrie S. Narisma