Boston Pizza Royalties Income Fund (BPF.UN) Q4 2025 earnings summary

Executive summary

• Achieved record annual franchise sales of CAD 976.3M in 2025, up 4.8% YoY, and CAD 244.4M in Q4, up 4.3% YoY, demonstrating resilience amid trade tensions and macroeconomic uncertainties.

• Same-restaurant sales (SRS) increased 4.7% for the year and 3.7% in Q4, driven by takeout, delivery, and successful promotional initiatives.

• Net and comprehensive income rose to CAD 42.2M for the year (up from CAD 31.9M YoY) and CAD 11.1M for Q4 (up from CAD 6.6M YoY), mainly due to higher fair value gains and increased royalty/distribution income.

• Distributable Cash increased 4.1% for the year and 5.1% for Q4, with per unit figures also up by the same percentages.

Financial highlights

• Franchise sales from Royalty Pool restaurants reached CAD 244.4M in Q4 and CAD 976.3M for the year, both reflecting strong SRS performance.

• Distributable Cash per unit was CAD 0.369 in Q4 and CAD 1.487 for the year, both up over 5% and 4% YoY, respectively.

• Distributions declared for the year totaled CAD 32.3M (CAD 1.520 per unit), with CAD 12.6M (CAD 0.590 per unit) in Q4.

• Cash flows from operating activities were CAD 39.7M for the year and CAD 9.9M for Q4, both up over the prior year.

• Royalty income was CAD 9.8M in Q4 and CAD 39.1M for the year, both up from prior year.

Outlook and guidance

• 2026 to feature guest-favorite campaigns, including Pasta Tuesday and NFL promotions, and plans to leverage major sporting events like the Olympics and World Cup to drive traffic.

• Focus remains on innovation, operational excellence, and supporting franchisees for sustainable growth.

• Management remains vigilant regarding economic and political uncertainties, adapting strategies as needed.

• Trustees will continue to monitor cash balances and distribution levels to ensure stable and sustainable distributions.