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Pizza Stocks Are Still Serving Up Good Business

Stockhouse Editorial
7 Comments| March 3, 2022

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A Canadian pizza franchise with more than 600 traditional and non-traditional restaurants coast to coast just released its financial results for Q4 and full year 2021 and proves that people still love the cheesy pie.

Pizza Pizza Royalty Corp. (TSX: PZA, Forum), which indirectly owns Pizza Pizza and Pizza 73 , highlighted increased System Sales from the 725 restaurants in the Royalty Pool increased 11.4% to $137.7 million from $123.7 million (CAD) in the same quarter last year when there were 749 restaurants in the Royalty Pool. By brand, sales from the 622 Pizza Pizza restaurants in the Royalty Pool increased 12.9% to $116.7 million (CAD) and sales from the 103 Pizza 73 restaurants increased 3.5% to $21.0 million (CAD) for Q4.

For the year ended December 31st, 2021, System Sales increased 1.1% to $493.6 million (CAD) from $488.3 million (CAD) in the prior year. For the year, sales from the 622 Pizza Pizza restaurants in the Royalty Pool increased 2.9% to $416.9 million (CAD) and sales from the 103 Pizza 73 restaurants decreased 7.6% to $76.7 million (CAD).

Highlights:
  • Royalty Pool sales increased 11.4%
  • Same store sales increased 12.4%
  • Adjusted earnings per share increased 10.3%
  • Working capital reserve increased $0.7 million (CAD) during the quarter to $6.5 million (CAD)


Pizza Pizza’s CEO, Paul Goddard pointed out in a news release that with the easing of restrictions across Canada, his outlets immediately experienced an increase in our many sales channels, but especially at several key non-traditional store locations and in our catering and walk-in business.

“This positive momentum continued the trend we experienced when pandemic restrictions were eased early in the second half of 2021. As a result, our Board was pleased to announce an 8.3% increase in the shareholder dividend effective February 2022.”

However, the number of restaurants in the company’s royalty pool had decreased by 24 locations to 725. The number of restaurants in the Royalty Pool remained unchanged.

Fully-diluted basic earnings per share increased 11.3% to $0.207 (CAD) for Q4 compared to the prior year comparable quarter, and decreased 2.4% to $0.743 (CAD) for the year.

PZA shares moved 1.7% higher at Thursday’s open to $12.54 (CAD).



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