This December Shakey’s would be doing their Intial Public Offering.
The following summary is qualified in its entirety by, and is subject to, the more detailed information presented in this Prospectus, including our audited financial statements and the notes thereto, included elsewhere in this Prospectus.
Shakey’s has been creating over 40 years of good times and great memories in the Philippines. We opened our first store in Metro Manila in 1975 and have grown our nationwide store system to 177 stores as of June 30, 2016, comprised of 106 Company-owned stores and 71 franchised stores. We believe that Shakey’s is the most popular pizza chain in the Philippines and according to Euromonitor, Shakey’s is the market leader by value in both chained full-service restaurants and chained pizza full-service restaurants, having a market share of 26.7% in chained full-service restaurants and 57.7% in chained pizza full-service restaurants in 2015. In addition, we have experienced double digit growth in system-wide sales in the last three years.
We have extensive and innovative menu offerings that cater to a wide market. We are best known for original thin crust pizza and our iconic chicken ‘n’ mojos. We cater to families and groups, serving meal bundles and party-size portions ideal for sharing. We have developed five different successful store formats—legacy, free standing, strip mall, mall and other—ranging from an average of 120 sqm to 600 sqm in size. These stores may be the bigger free standing stores located in major thoroughfares or those located in malls and other complexes, tailored to suit the needs of our guests in these markets. We complement our dine-in services with an efficient delivery system and an expanding online sales platform. We believe that our various store formats and sales channels provide us the flexibility to locate in, and grow with, the different markets we serve.
We primarily serve the A, B and upper C classes and expect the upper C segment to grow as their disposable income increases. We believe that we are well positioned to capture these growth opportunities and meet the needs of this market as they eat out more often and their dining choices shift from fast food establishments to full-service dining experiences in a well-designed, comfortable, clean and guest-oriented atmosphere.
We own the Shakey’s trademark for the Philippines and retain full control and independent management over Shakey’s stores in the Philippines without having to pay royalties or other fees for the use of the Shakey’s name. This enhances our ability to continue growing a chain of Shakey’s stores that provides our guests with high- quality menu offerings and a consistently enjoyable dining experience. We believe that the Shakey’s brand, cultivated over the past four decades, resonates with our guests and that the uniquely Shakey’s experience consistently recreated in various formats and sales channels make us the leading pizza chain in the country. Our stores are located in strategic areas throughout the Philippines. We complement our Company-owned stores with an established franchise model, particularly in new growth areas like Visayas and Mindanao. Our long operating history has helped to define Shakey’s as a nationwide iconic brand in the Philippine chained full- service restaurant and chained pizza sectors.
We generated total revenues of ₱4,154.3 million, ₱4,696.5 million, ₱5,244.3 million, ₱2,456.5 million and ₱2,783.7 million for the years ended December 31, 2013, 2014, 2015 and the six months ended June 30, 2015 and 2016, respectively, and net income of ₱367.2 million, ₱429.2 million, ₱479.6 million, ₱212.6 million and ₱365.2 million for the same periods. We generated net sales of ₱4,037.7 million, ₱4,553.5 million, ₱5,076.0 million, ₱2,377.3 million and ₱2,689.2 million for the years ended December 31, 2013, 2014, 2015 and the six months ended June 30, 2015 and 2016, respectively, and royalty and franchise fees of ₱116.6 million, ₱143.0 million, ₱168.3 million, ₱79.3 million and ₱94.5 million for the same periods.