Boston Pizza Royalties Income Fund (BPF.UN) Q2 2025 earnings summary

Executive summary

• Achieved strongest Same Restaurant Sales (SRS) growth since Q1 2012, excluding COVID recovery quarters, driven by effective promotions and takeout/delivery momentum.

• Franchise sales from royalty pool restaurants reached $251.8M for the quarter and $483.0M year to date, up 6.3% and 5.3% year-over-year.

• Net and comprehensive income was $14.3M for the quarter, up from $7.5M in Q2 2024, mainly due to higher fair value gains and royalty income.

• Distributable cash per unit increased 6.3% for the quarter and 3.2% year to date.

• Brand update and new menu launch in June, plus a partnership with Live Nation to engage younger guests.

Financial highlights

• Royalty income was $10.1M for the quarter and $19.3M year to date, up from $9.5M and $18.4M year-over-year.

• Total revenue for Q2 2025 was $13.4M, up from $12.6M year-over-year.

• Distributable cash for the quarter was $8.0M, up 6.1% year-over-year; distributable cash per unit was $0.374, up 6.3%.

• Basic earnings per unit for Q2 2025 was $0.67, up from $0.35 in Q2 2024.

• Payout ratio for the quarter was 92.3%, down from 96.2% in Q2 2024.

Outlook and guidance

• Continued focus on brand rejuvenation, digital campaigns, and guest engagement through Q3, including a national contest and Kids Card promotion.

• Management remains optimistic about ongoing sales momentum and is monitoring economic conditions closely.

• Trustees remain cautious due to ongoing economic uncertainty and will monitor cash balances and distribution levels.

• Supply chain is well positioned, with most raw materials sourced in Canada, mitigating tariff risks.