Pizza Pizza Royalty Corp T.PZA

Alternate Symbol(s): PZRIF

Consumer Cyclical Restaurants

Pizza Pizza Royalty Corp., through Pizza Pizza Royalty Limited Partnership (the Partnership), owns the trademarks, trade names and other intellectual property used by Pizza Pizza Limited (PPL) in its Pizza Pizza and Pizza 73 restaurants and in its international franchising business. PPL is a privately held company that provides service and operational support to restaurant operators. Pizza Pizza is a franchise-oriented restaurant business operating primarily in the province of Ontario, in which it leads the pizza quick service restaurant (QSR) segment. Of the 652 Pizza Pizza restaurants, 646 are franchised or licensed, and six are owned and/or managed as corporate restaurants. Of the 652 restaurants, 197 are non-traditional locations which have limited operating hours and a limited menu. There are about 100 Pizza 73 locations operating in the QSR segment, principally in the province of Alberta. The Pizza 73 business also includes a central food distribution center in Edmonton.

TSX:PZA - Post by User

Pizza Pizza Royalty Corp

<< Previous

Bullboard Posts

Next >>

Post by Possibleidiot01on Apr 04, 2023 11:41am

288 Views

Post# 35378728

Trevor Rose's Insights - BUY

BUY

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

PZA’s performance has been quite resilient in the last three years, and is now trading at 15.0x times' Forward P/E.
PZA operates as a royalty company that collect stable royalty earnings from the franchisee and pays out almost all as dividends.
The balance sheet is strong, with net debt of $39M.
Total debt is around 1.3x times trailing twelve-month cash flow of $29M, and cash flow grew around by 16% compared to $24M last year.
Going forward, sales are expected to grow by 3% - 5% along with inflation.
Although growth is not really fast, the company has been stable, and predictable in earnings and dividend payments.
Overall, we think PZA is solid name for income purposes.
Unlock Premium - Try 5i Free

merchandising / lodging

$13.720