Shakey’s Pizza Asia Ventures Inc. said it ended 2019 with a flat net income of P862 million, from P840.91 million recorded in 2018, mainly as a result of the new accounting standard.
System-wide sales—the combined measure of company-owned and franchised stores’ sales—grew by 11 percent year-on-year to P10.4 billion. Same-store sales growth for the full-year, however, was flat.
The company said the flat net income growth was a result of the Philippine Financial Reporting Standard (PFRS) 16, an accounting standard on leases which took effect at the start of 2019, accelerating the recognition of noncash expenses.
Shakey’s, led by the Po family, ended the year with 276 stores throughout the Philippines, comprised of 246 Shakey’s and 30 Peri-Peri Charcoal Chicken outlets.
Last year, there were 18 new Shakey’s stores, 17 of which were opened outside Metro Manila, and seven new Peri stores counting from the company’s acquisition mid-year.
Select Shakey’s and Peri outlets remain operational for delivery and carry-out services utilizing a limited menu, shortened hours, and a reduced and voluntary work force during the enhanced community quarantine in Luzon.
The company said it is looking to gradually reopen more select outlets over the next few weeks while strictly implementing enhanced safety protocols that are aligned with the recommendations of the World Health Organization.
“This is an extraordinary time, but we are able to manage through by prioritizing a strong cash and liquidity position, and slowly increasing delivery and carry-out accessibility,” said company President and CEO Vicente Gregorio.
“Amid the short-term disruptions, we are also readying ourselves to bounce back in what we believe will be a new ‘post-Covid’ [coronavirus disease 2019] world where a strong brand and delivery presence is key. Though the full effects of [Covid-19] remain unknown, we are firmly in this business for the long run benefit of all our stakeholders, including our employees and our guests, and we believe that the structural growth story of dining out in the Philippines is still intact,” he added.