Shakey’s Pizza Asia Ventures, Inc. (SPAVI) reported a 20 percent decline in core net income in 2025, as softer discretionary spending and higher costs from aggressive expansion weighed on earnings despite double-digit sales growth.

The listed casual dining and kiosk chain operator reported on Thursday that core net income after tax (NIAT) fell to P952 million, while headline NIAT dropped 32 percent year-on-year to P816 million. 

The decline was driven by muted same-store sales and rising operating and expansion-related expenses.

Systemwide sales increased 14 percent to P24.8 billion, while consolidated revenues grew 11 percent to P16.1 billion, supported by continued network expansion.

The group opened 351 new stores during the year, bringing its global footprint to 2,970 locations.

However, consumer headwinds dampened overall performance. Inclement weather, natural calamities, and slower economic growth weakened demand, particularly in the second half of the year.

Same-store sales growth stood at just 1 percent for the full year, with sales remaining flat during key periods.

“2025 was a tale of two halves. The first six months saw robust restaurant performance on stabilizing inflation and major campaigns like Shakey’s 50th anniversary. However, the second half of the year saw a pullback in discretionary spending,” SPAVI President and Chief Executive Officer Vic Gregorio said.

SPAVI said its multi-brand portfolio helped cushion the impact of softer demand.

The group, which operates Shakey’s, Potato Corner, Peri-Peri Charcoal Chicken, R&B Milktea, and Project Pie, saw weaker performance in casual dining partly offset by stronger sales from value-oriented kiosk formats.

Margins, however, came under pressure. Gross margins fell to 22.9 percent, down 2.3 percentage points from the previous year, as pre-operating expenses and depreciation linked to new stores weighed on profitability. 

Operating expenses rose to 14.6 percent of sales, up 70 basis points, reflecting softer revenues and increased spending on demand-generating activities.

Despite the earnings decline, core EBITDA grew 3 percent to P2.7 billion, indicating underlying operating resilience as the company continues to invest in long-term expansion.