Shakey’s Pizza Delivers 15% Systemwide Sales Growth In 1H25, Continues Investments in Network Expansion and Major Brand Building to Scale

Shakey’s Pizza Asia Ventures, Inc. (SPAVI|PSE:PIZZA), one of the leading chain restaurants and food groups in the Philippines, delivered healthy H1 2025 growth as SWS improved by 15% YoY, landing at P11.6 billion at the half-year mark. Revenue reached P7.4 billion, up 13% versus the first six months last year.

A closer view of the second quarter shows a 13% YoY uptick in both SWS and revenues, registering P6.0 billion and P3.9 billion respectively. On a sequential basis, topline demonstrated fair progress with SWS up by 8%, while revenues grew by 11%.

The Group achieved broad-based, volume-led growth across its multi-brand portfolio, fueled by continued investments in store network expansion as well as brand building. SPAVI saw its store footprint increase to 2,718 total units across restaurants and kiosks globally, reflecting the 99 new stores that opened in the first six months of the year. Meanwhile, 2Q same store sales growth (SSSG) clocked a moderate improvement at 3%, up from last quarter’s 2% – the outcome of steady investments to scale its brands.

Vic Gregorio, SPAVI President and CEO, said, “Our first half results reflect our strategic thrust to expand our reach and strengthen our brands, even in a soft consumer environment. Since March of last year, we’ve opened 486 new stores globally – significantly contributing to our sales growth. While inflation has started to ease, guests remain mindful of their spending. That’s why we focused on strengthening brand relevance and delivering superior value, leading to an improving quarterly same store sales growth.”

In terms of profitability, 1H25 gross margin softened by 200 basis points (bps) YoY to 22.3%. This was influenced by the impact of product quality improvements, partially tempered by improving commodities, and investments in network expansion including renovations and pre-operating expenses of new stores.

Meanwhile, operating expenses as a percentage of sales stood at 13.3% in the first half. Despite investments in major campaigns and sales building promotions, OPEX-to-sales posted a 140bps improvement versus the comparable period due to better cost recovery from topline growth and the inclusion of investments in international in the cost base.

A notable program is Shakey’s ongoing 50th Anniversary, a year-long milestone campaign with cross-generational endorsers and special promotions to bolster the brand for its golden year. The Group also launched a widescale marketing campaign for Potato Corner catering to younger audiences, featuring TikTok sensation and social media influencer, Niana Guerrero.

As a result, H1 2025 core EBITDA clocked in at P1.1 billion while core NIAT landed at P427 million. This demonstrated a growth of 17% and 2% YoY respectively – a reflection of SPAVI’s investments in new store openings. However, due to a prior period one-off adjustment, EBITDA growth was more muted at 9% while headline NIAT fell 17% versus the previous year.

According to Gregorio, SPAVI is still aiming to end the year with double-digit growth in both sales and core profit. To support this, the Group is gearing up to accelerate its network expansion with around P1.0 billion in capital expenditures to hit 430 net new stores by the end of 2025.

“As we close off the first six months of 2025, we foresee a more back-ended trajectory this year, with a significant portion of our investments coming in the second half to drive this growth. While we continue to navigate a fluid operating environment with shifting consumer sentiment, we’re encouraged by improving input costs, the seasonal uplift of the fourth quarter, and the momentum that new store openings will create. It won’t be without challenges—but with a focused strategy and our guest-centered ethos, we are building towards a solid 2025 finish. Ultimately, we’re staying the course and investing accordingly in our pursuit of long-term sustainable growth,” Gregorio concluded.