Shakey\u2019s to spend P362 million for store expansions in second half of 2022.<\/p>\n\n\n\n
Our View:<\/strong> The P362 million that has been earmarked for store expansions represents 56% of PIZZA\u2019s 2022 CAPEX budget, thereby indicating that the company has more bullets left for growth in 2H 2022 despite the initial reopening wave post-omicron having already run its course.<\/p>\n\n\n\n We note that the return of F2F in schools as well as the looming holiday season also provide further legs for revenue expansion. Although soaring sugar prices may impact margins on some level, we believe that the overall margin outlook for the company looks brighter compared to the beginning of the year as the Potato Corner segment starts to ramp up its sales.<\/p>\n\n\n\n Based on our model, the low-cost model of Potato Corner is expected to yield a Gross Profit Margin (GPM) of 54% for 2022 which is higher than that of PIZZA\u2019s core business. We currently have a BUY rating on PIZZA (Target Price: P9.88) given its 25% upside.<\/p>\n","protected":false},"excerpt":{"rendered":" Here’s a commentary on an important issue or event affecting the stock market <\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-316727","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316727","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=316727"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316727\/revisions"}],"predecessor-version":[{"id":320508,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316727\/revisions\/320508"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=316727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=316727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=316727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}