Shakey’s sales decline 31%

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    Shakey’s Pizza Asia Ventures Inc. registered a P290-million loss in the first half of the year, a reversal from a P389 million profit last year, due to the new coronavirus disease 2019.

    The master-franchise holder for the Shakey’s pizza chain in the Philippines said sales were down 31 percent.

    The company said 267 Shakey’s and Peri stores, representing 95 percent of total store network, were up and running by the end of the quarter.

    “For most of the three-month period however, outlets that were operational were subject to shortened hours and limited to delivery and carry-out only. Dine-in largely resumed in June, though at limited capacity and subject to ongoing review of government-mandated quarantine measures. Nonetheless, lost dine-in sales were partially offset by stronger demand for delivery and carryout which saw record-breaking sales in the last few months,” it added.

    Shakey’s said bottomline was dragged down by fixed operating costs, at both the stores and head office, amidst lower sales. It also recorded a one-off charges resulting from streamlining of operations, hoped to permanently improve cost-structures moving forward.

    “The effects of these initiatives are expected to kick-in beginning second half of the year and benefit all succeeding periods,” Shakey’s said.

    Shakey’s has reduced its capital spending for the year by at least 60 percent. Shakey’s is also cutting this year its annual dividend payments to P0.01 per share from P0.10 a share.