Pizza Pizza Royalty (PZA) Q1 2025 earnings summary

Executive summary

• Same-store sales grew 1.2% in Q1 2025, with Pizza Pizza at 0.6% and Pizza 73 at 4.3%, building on a strong prior year quarter.

• Growth was driven by increased guest traffic, higher average check, and new product launches and marketing initiatives.

• Continued menu and marketing innovation, including XXL pizza, loaded tater tots, and custom hockey promotions.

• Restaurant network expanded with new openings and conversions, maintaining a leading national presence.

• Royalty Pool expanded by 20 net restaurants to 797 as of January 1, 2025.

Financial highlights

• Royalty Pool system sales rose 1.6% to CAD 151.3 million from CAD 148.9 million year-over-year.

• Royalty income increased 1.9% to CAD 9.7 million.

• Adjusted earnings available for shareholder dividends increased to CAD 4.91 million from CAD 4.71 million.

• Declared shareholder dividends of CAD 5.7 million (CAD 0.2325 per share), consistent with the prior year.

• Working capital at March 31, 2025 was CAD 5.2 million, down CAD 0.9 million sequentially.

Outlook and guidance

• Anticipates 2%-3% traditional restaurant network growth and continued renovations in the second half of 2025.

• Expects continued competition for consumer spending due to economic and tariff pressures.

• Ongoing investment in technology to enhance customer engagement and order frequency.

• Dividend policy remains to distribute all available cash after reasonable reserves, with monthly payments to smooth income.