Po food group eyes slice of American food market
Po family-led Shakey’s Pizza Asia Ventures Inc. is betting on the United States to increase its international visibility and, eventually, get an earnings boost as the food service industry remains highly competitive.
In a stock exchange filing on Monday, Shakey’s said its board of directors had approved the incorporation of an American subsidiary, which will own and operate stores and franchises in the United States.
Shakey’s, which operates its flagship Shakey’s Pizza brand and flavored fries maker Potato Corner, added that its soon-to-be-registered, fully owned subsidiary would likewise market the group’s products and brands.
“The incorporated entity will be the group’s platform in its expansion plans in the territory, which will grow systemwide sales, revenues and bottomline internationally via company-owned and franchised stores,” Shakey’s said in its filing.
Registration of the new subsidiary is expected within 30 days, the company added.
Shakey’s, which also operates Peri-Peri Charcoal Chicken, is present in the United States through Potato Corner. The company owns the Shakey’s brand rights in the Middle East and Asia (excluding Japan and Malaysia), Australia and New Zealand, according to its website.
Shakey’s is still hurdling a “soft consumer environment” amid stiff competition in the food service industry.
The company’s first-half earnings declined by 14 percent to P420.5 million, while its top line inched up by 7.4 percent to P6.53 billion.
“While earnings performance remained subdued as expected, the group sees improvements [in the second half] as input costs improve, maintaining its mid-teens earnings growth outlook for 2024,” Shakey’s said.
Earlier, Shakey’s president and CEO Vicente Gregorio told reporters that they would open around 400 new stores this year, the majority of which, or 280 stores, would be Potato Corner kiosks.
The Shakey’s Pizza brand, meanwhile, will open only 20 new stores.
