Dec 7, 2016- #Pizza Wars (Analysis of Shakeys Pizza IPO and the food)

Don’t take this article seriously. It’s not a serious financial report. 

 So can you make money by subscribing to the Shakeys IPO? Does that even matter? 

There are in my opinion 5-6 pizza chains that’s worth their salt when it comes to domination. 

Sure Gino’s brick oven pizzas are probably tastier but the point here is who’s dominating when it comes to sales and growth

1.) Shakeys (PH:PIZZA)

2.) Yellow Cab (PH:MAXS)

3.) Pizza Hut (NYSE:YUM) though this includes KFC Wendy’s and so forth 

4.) S&R New York Style Pizza (PH:PGOLD)

5.) Dominos (NYSE:DPZ)

6.) Greenwich (PH:JFC) 

Everyone has his own beef when it comes to his pizzas 

Gordon Ramsay likes it organic and fresh 


Unlike in the USA where Dominos Pizza delivers their food through drones ; $DPZ by the way making new highs ; the most tech savvy in the Philippines would already be Yellow Cab (PH:MAXS) only because they’ve got a working mobile app and i can order thru there and it works. 

https://www.google.com.ph/amp/thenextweb.com/gadgets/2016/11/17/dominos-begins-delivering-pizza-drone/%3Famp%3D1?client=safari


Meanwhile; I must applaud Lucia Co and his team for their standalone New York pizza stores more often known as S&R QSR quick service restaurants that started as a testing ground but grew from 1 to 21 in only 2 years; thus the 170 stores shakeys has would be put to the test. You have a competitor.

What I like about SnR is I can order a 99 peso pepperoni pizza meal. Frankly eating a whole pizza isn’t always going to happen so I like that too. 

What SnR fails miserably is they don’t have a centralized or catchy delivery 

Come on 

Pizzahut has 911-1111

Yellow cab has 789-9999

Shakeys is 77-777

And and dominos? Lousy number 997-3030

Greenwich 533-3333

and SNR is worse – delivery isn’t centralized : basically different phone for different location. You want to make better sales? One catchy number . Heck ambers palabok has a catchy phone it’s 884-8888

Sbarro doesn’t have a centralized number either 

My suggestion for SnR pizza is 168-8888

🙂


Strength of shakeys are their monster meal deals and mojo 

Basically they targeted group bundles very effectively and those loyalty cards which were pizza huts idea was really executed well. 

Pinoys want sulit and Shakeys made it clear they know their market – the weakness of the barats! 

Truth is Filipinos are takaw tingin. Perhaps shakeys made us all order more even if we can’t finish due to this monster bundle. They make us obese! Hrhrhr. Probably why they never pushed the 99 peso slice meals. Yes they have those bunch and lunch but marketing always did the group barkada thing. 

Lemme count the pizza it’s 170 stores 6.5B sales or 106,000 peso per store per day (360 days in a year) or an average of 212 pizzas served in a day or 8,000 peso sales for every 12 hours 



What’s the gist of the IPO? 

March 2016 Century bought Shakeys from Prieto with the help of a 5 Bil peso BDO loan at 4.25% 

They will pay approx 1B out of the 3.96B to BDO (investment banker and underwriter too of this IPO)

137M pesos is going to be used for expansion (measly) 

While 2B is secondary shares 

po family and Singapore (Arran) bought 15B peso widely circulated in news

Market cap at 11.26 is 17.2B


Dominos abroad is priced at 42X PE due to the drones and 66% ROI

Yum brands is cheaper 15X PE coz ROI is less too. 
Shakeys is going to trade at 35X 2015 and 24X2016 annualized 

-night! 

Shakeys up to you. 

Oversubscribed demand 

But how much is Max’s today?

And pgold? 

Lots of competition for that pizza pie 

But parokya loves picha pie 

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