Shakey’s profits fall 32% despite higher sales

Expansion and softer dining spending weigh on margins as revenue reaches ₱16.1 billion.

Shakey’s Pizza Asia Ventures Inc. (SPAVI) saw profits drop 32% to ₱816 million in 2025, even as revenue climbed 11% to ₱16.1 billion.

Rising sales did not carry through to earnings, as the company pushed ahead with expansion while facing higher costs. SPAVI said expansion-related expenses weighed on margins, describing these as near-term impacts tied to investments for long-term growth.

The group opened 351 new stores and outlets during the year, bringing its global network to 2,970 locations. About 16% of these are international stores, as the company continues to grow its footprint beyond the Philippines. Systemwide sales rose 14% to ₱24.8 billion.

Spending slows in second half

The year unfolded unevenly. The first half benefited from stabilizing inflation and major campaigns, including Shakey’s 50th anniversary push. By the second half, however, discretionary spending began to ease, pulling down overall performance. 

Same-store sales growth came in at just 1%, pointing to limited lift from existing branches despite the wider footprint. The fourth quarter, typically a strong period, also fell short of expectations.

Value formats hold steadier

Performance varied across brands within the portfolio. Casual dining concepts like Shakey’s saw softer demand for shared meals and group occasions, while smaller, more affordable formats such as Potato Corner held steadier.

SPAVI said its multi-brand setup allowed it to capture demand across different price points, particularly as customers became more selective with spending.

The business continues to expand and add sales, but returns remain under pressure as higher costs and more cautious spending shape how consumers choose to dine.