Boston Pizza Royalties Income Fund (BPF.UN) Q4 2024 earnings summary

Executive summary

• Achieved record annual Franchise Sales of CAD 931.7M (up 0.6% YoY) and record Q4 sales of CAD 234.2M (up 2.9% YoY), driven by effective promotions and menu price increases despite macroeconomic challenges.

• Same Restaurant Sales (SRS) increased 3.4% in Q4 and 0.9% for the year, mainly due to menu price increases.

• Net and comprehensive income rose to CAD 6.6M in Q4 (from CAD 5.2M YoY) and CAD 31.9M for the year (from CAD 29.6M YoY), driven by fair value gains and higher royalty income.

• Distributable cash per unit was CAD 0.351 in Q4 (up 1.4% YoY) and CAD 1.429 for the year (down 0.2% YoY).

• Two distribution rate increases and a special cash distribution were implemented in 2024.

Financial highlights

• Franchise sales from royalty pool restaurants reached CAD 234.2M in Q4 (up 2.9% YoY) and CAD 931.7M for the year (up 0.6% YoY).

• Q4 Distributable Cash: CAD 7.5M (up 1.5% YoY); annual: CAD 30.4M (down 0.9% YoY).

• Royalty income was CAD 9.4M in Q4 and CAD 37.3M for the year, both up from 2023.

• Q4 Payout Ratio: 118.4% (up from 92.7% YoY); annual: 99.9% (up from 88.6% YoY).

• Distributions paid per unit: CAD 1.427 for 2024 (up from CAD 1.269 in 2023).

Outlook and guidance

• 2025 started with new promotions, including Pasta Tuesday and NFL Pepsi campaigns, and continued focus on guest experience and franchisee support.

• Renovation trend expected to exceed 27 locations in 2025, aiming for one-seventh of the chain annually.

• Management remains focused on adapting to macroeconomic challenges, enhancing guest experiences, and supporting franchisees.

• Proactive strategy adjustments are planned to sustain positive sales momentum in 2025 amid evolving consumer and economic conditions.