• 3Q26 Systemwide sales (SWS) grew by 11% year-on-year (YoY) and revenues rose by 13% on improving same-store sales and steady network investments.
• Same-store sales accelerated to 3.5% in 3Q26 from a flattish first half, driven by stronger volumes from the Group’s deliberate focus on value offerings.
• 3Q26 gross margin expanded sequentially to 21.2% from the first two quarters, on measured pricing action, supply chain efficiencies, and disciplined network development. Together with tighter discretionary and G&A spending, these led core net income after tax (NIAT) to improve by 11% YoY.
• 9M26 SWS and revenues increased by 12% and 10% YoY, respectively. Global store network reached 3,106, with 136 net new units added in the first nine months of the year. While headline net income after tax (NIAT) declined by 46%, the positive momentum in the third quarter narrowed the year-to-date decline of core NIAT to 13%, on track with the Group’s restructuring efforts.
Shakey’s Pizza Asia Ventures, Inc. (PSE:PIZZA | SPAVI), the leading full-service chain restaurant and food service group in the Philippines, reported a healthy rebound in the third quarter of 2026 as ‘reset’ initiatives took shape. Core net income after tax (NIAT) returned to growth, improving by 11% year-on-year (YoY) and 51% quarter-on-quarter (QoQ). In the face of a soft consumer environment and rising costs, SPAVI undertook a reset in 2026, focused on delivering value and better experiences to guests, while managing inflationary pressures and conserving cash.
Core NIAT excludes the impact of non-recurring restructuring costs from the streamlining of the Group’s network, mostly from Peri-Peri Charcoal Chicken & Sauce Bar. This is part of the strategic reset to improve the quality of its network.
RESET & RECALIBRATE TOWARDS QUALITY GROWTH
In the third quarter, the Group saw systemwide sales (SWS) reach Php 6.8 billion, growing by 11% YoY. This brought SWS in the first nine months of the year to Php 19.8 billion, up 12% from the prior-year base. Revenues for the quarter amounted to Php 4.2 billion, up 13%, bringing 9M26 revenues to Php 12.4 billion, up 10% YoY. Sales momentum was supported by new store openings and improving same store sales.
The Group’s global network stood at 3,106 stores and outlets as at end-September. A total of 136 net new units were added within the nine-month period, including 32 units in 3Q26. This reflects SPAVI’s continued investment in broadening its reach at a moderated pace, while undertaking restructuring initiatives. These actions improve the quality of its network and support cash conservation.
SPAVI’s same-store sales grew by 3.5%, sequentially improving from a flattish first half. Both restaurants and kiosks delivered growth during the period, which the Group attributed to demand-generating activities focused on value-for-money offerings and brand building, as well as measured pricing action well below inflation.
SEQUENTIAL GAINS DRIVE RETURN TO CORE EARNINGS GROWTH
In terms of profitability, gross margin in 3Q26 stood at 21.2%, demonstrating a 100-basis points (bps) QoQ improvement on the back of supply chain efficiencies, measured pricing, and better fixed cost coverage from higher sales volume. These mitigated higher store costs seen since the previous quarter, such as utilities. Operating efficiencies and tighter spending brought operating expenses (Opex) as a percentage of sales down by 30bps QoQ to 13.9%.
For 9M26, gross margin stood at 20.5%, down 85bps YoY, weighed down by prior quarters, in particular, expansion-related expenses and the impact of softer sales on operating leverage. Opex-to-Sales registered at 13.9%, up 150bps YoY, mostly attributable to one-off restructuring costs. |
Including one-off restructuring costs, headline net income after tax (NIAT) landed at Php 75 million in 3Q26 and Php 306 million in 9M26, down YoY 67% and 46%, respectively. Removing these non-recurring costs, core NIAT reached Php 247 million in the third quarter, up 11% YoY. This acceleration narrowed the decline in 9M26 core NIAT to 13% YoY, landing at Php 563 million.
SPAVI’s solid underlying performance and reset initiatives allowed the Group to generate healthy cashflows. During the nine-month period, operating cashflows amounted to Php 1.6 billion, while free cashflows amounted to Php 1.1 billion.
Vicente Gregorio, SPAVI President and Chief Executive Officer, said, “Navigating a tough environment required us to reset our business fundamentals and recalibrate our path towards quality growth and profitability. It was a balancing act of providing superior value to our guests while mitigating inflationary pressures, and of expanding and rationalizing our network at the same time. We are pleased to see the early gains from these strategic choices taking shape and aim to stay on course as we build a solid foundation for the Group.”
“As we advance towards year-end, we are encouraged by the early momentum we’re already seeing in the fourth quarter. We plan to finish strong, with both restaurant and kiosks benefiting from the seasonal lift. At the same time, we will continue to improve our bottomline by unlocking efficiencies across our operations. We view 2026 as reset year, one that sets up our multi-brand portfolio for long-term, sustainable growth, so we can emerge stronger than before,” he concluded.
Disclaimer:
This press release includes forward-looking statements. Such forward-looking statements are management’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
The reader is cautioned not to rely on such forward-looking statements, which speak only as of the date they were made. All subsequent forward-looking statements attributable to the Company, its affiliates or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements referred to in this press release. |
Shakey's Pizza Asia Ventures, Inc.PIZZA