Shakey’s Pizza Asia Ventures, Inc. (SPAVI), the parent company of Potato Corner, reported a 20% decline in core net income for FY2025, as softer consumer demand in the second half and higher operating costs weighed on margins despite continued expansion.
Core net income after tax fell to ₱952 million ($15.86 million), even as systemwide sales rose 14% year-on-year to ₱24.8 billion. Revenues grew 11% to ₱16.1 billion, largely driven by network expansion rather than same-store sales growth. “We entered 2025 with strong momentum, but the year ultimately turned into a tale of two halves,” said Vic Gregorio, President and Chief Executive Officer of SPAVI. “While the first half benefited from easing inflation and sustained demand, the second half saw softer consumer spending, particularly affecting discretionary categories.”
The group added 351 stores during the year, bringing its total global footprint to nearly 3,000 outlets across brands including Shakey’s, Potato Corner, Peri-Peri Charcoal Chicken, R&B Milk Tea, and Project Pie. Expansion remained a key growth lever, with 163 stores opened in the fourth quarter alone.
However, the aggressive rollout, coupled with inflationary pressures, pushed operating expenses higher. Costs rose to 14.6% of sales, reflecting pre-opening expenses, manpower investments, and marketing initiatives aimed at sustaining traffic.
“Our continued expansion is deliberate and anchored on long-term growth,” Gregorio added. “We are investing in formats and locations that offer strong unit economics, even as we navigate near-term volatility.”
Same-store sales growth remained subdued at around 1% for the year, with flat performance during the holiday quarter underscoring cautious consumer sentiment. Despite the pressure on profitability, the company highlighted the resilience of its value-driven brands.
“Our portfolio allows us to adapt to shifting consumer behaviour,” Gregorio said. “Concepts like Potato Corner continue to perform well, benefiting from their accessibility and value positioning, helping offset softness in dine-in segments.”
Looking ahead, SPAVI said it will focus on improving cost efficiencies, strengthening margins, and sustaining disciplined expansion as it navigates a more challenging consumption environment.
