SHAKEY鈥橲 Pizza Asia Ventures, Inc. (Shakey鈥檚) posted a 35% drop in net income for the first quarter as operations in its restaurant chain were halted by the Luzon-wide lockdown in March.
In a statement Monday, the restaurant chain operator said its net income fell to P114 million in the three-month period as gross revenues ended flat at P1.83 billion.
It noted it was recording a 21% systemwide sales growth in the first two months of the year, but it dropped in the following month with the implementation of quarantine restrictions in relation to the coronavirus disease 2019 (COVID-19) pandemic.
Only 9% of Shakey鈥檚 network of 290 stores were operational in the second half of March, and these stores were only servicing delivery and carry-out customers. Shakey鈥檚 ended the quarter with systemwide sales of P2.3 billion.
鈥淭he temporary closure of a significant number of our stores, combined with the impact of operating leverage and various fixed costs, dampened our bottom line during the period. We expect the second quarter to be worse, possibly the most challenging I鈥檝e experienced in my career, as we feel the full effects of limited operations and incremental costs due to the crisis,鈥 Shakey鈥檚 President and Chief Executive Vicente P. Gregorio was quoted in the statement as saying.
But he noted the company has made efforts to gradually reopen its store network. Some 256 stores or 91% of Shakey鈥檚 network have already resumed operations.
鈥淲e are grateful that our multi-channel and multi-format approach鈥as allowed us to weather through the challenges鈥 We were able to re-open stores located outside malls early into the quarantine period, and our existing delivery and carry-out platforms gave us a strong base from which to build and support the growth in in-home food consumption,鈥 Mr. Gregorio said.
鈥淎ll these, I believe, put Shakey鈥檚 in a good position to bounce back, macro environment permitting,鈥 he added.
Shakey鈥檚 stores that are not located in malls make up 46% of its store network. Sales from delivery and carry-out services made up 37% of its total sales for the period.
鈥淲e are鈥 taking a more prudent approach over the next few months鈥 In the meantime, we will continue to enhance and invest in existing delivery, digital, and carry-out platforms 鈥 building on what we have, as well as introducing new and exciting innovations,鈥 Mr. Gregorio said.
Shares in Shakey鈥檚 at the stock exchange grew 27 centavos or 4.66% to P6.07 each on Monday. 鈥 Denise A. Valdez
