SHAKEY’S Pizza Asia Ventures Inc. ended the first quarter with systemwide sales flat versus same period last year, with its strong 2020 start dampened by store closures in mid-March due to the implementation of enhanced community quarantine (ECQ) in the Philippines.
The company posted systemwide sales growth of 21 percent in January and February prior to the ECQ, driven primarily by same store sales growth of seven percent, the continued expansion of Shakey’s outside Metro Manila, and the consolidation of Peri-Peri Charcoal Chicken in June 2019.
Beginning mid-March however, the company was forced to temporarily suspend operations of majority of its stores due to mall closures, limited public transportation and the presence of checkpoints following various quarantine guidelines.
As a result, Shakey’s ended the quarter with systemwide sales of P2.3 billion, similar to the same period last year, and a net income of P114 million, down 35 percent year-on-year.
The firm earlier announced cutting its original capital expenditure budget by 70 percent, as well as taking action to reduce unnecessary overhead costs and manage working capital spend.
It will also be suspending its 2020 new store openings for now. (PR)