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Shakey’s Pizza says it’s open to acquisitions but ‘not actively looking’

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LISTED restaurant chain Shakey’s Pizza Asia Ventures, Inc. remains open but is “not actively looking” for possible acquisitions, as the company is focused on the growth of its current brand portfolio.

“We’re not actively in search, but we will always remain open, and we’ll listen,” Shakey’s President and Chief Executive Officer Vicente L. Gregorio told a virtual news briefing last week. “There must be a compelling reason for us to take on the new acquisition.”

“We will always be open, but our focus at the moment is really just these powerful brands that we have. There’s a lot of work and a lot of opportunities that can carry us on for the next couple of years,” he added.

Shakey’s portfolio consists of five brands — Shakey’s Pizza, Potato Corner, Peri-Peri Charcoal Chicken & Sauce Bar, Singaporean milk tea brand R&B Milk Tea and artisanal brand Project Pie.

The company acquired Potato Corner in 2022. Shakey’s bought the master franchise to launch the R&B Milk Tea brand in 2020. It acquired the Peri-Peri Charcoal Chicken & Sauce Bar brand and the assets and intellectual property rights of the Project Pie brand in 2019.

Meanwhile, Shakey’s Chairman Christopher T. Po said the company’s bar for acquisitions is “higher right now,” depending on the valuation and compatibility with its other brands.

He added that the company’s portfolio is “enough to grow double digits for the foreseeable future.”

“When I say the bar is higher, with more brands in the portfolio, we’re careful also not to take in a new opportunity that will just clash with our existing brands,” he told the same briefing.

“If we can buy attractive brands at a discount, that gives us a larger cushion to do things, a lot more flexibility. If there’s a new opportunity that is not competitive with our current set of brands, and also at a fair valuation, then it’s something where we would take a serious look,” he added.

Shakey’s net income declined by 15% to P171 million in the first quarter due to higher operating expenses. System-wide sales rose by 15% to P4.8 billion.

The company had 2,232 stores and outlets at the end of March.

Shakey’s shares closed at P9.52 each on June 21. — Revin Mikhael D. Ochave

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