Pizza Pizza Royalty (PZA) Q3 2025 earnings summary

Executive summary

• Achieved a network milestone of 811 stores in Canada at quarter-end, including 706 Pizza Pizza and 105 Pizza 73 sites, and expanded internationally with four locations in Mexico.

• Royalty Pool sales grew 2.0% in Q3 2025 and 2.5% year-to-date, driven by modest same-store sales growth and new restaurant additions.

• Continued focus on value messaging, digital innovation, and menu enhancements to drive customer engagement and frequency.

• Introduced new menu items and successful promotions, such as deep-fried pizza on a stick and the 18-inch double XL pizza deal.

• Adjusted earnings per share decreased 1.3% in Q3 2025, while year-to-date adjusted EPS was flat.

Financial highlights

• Q3 2025 Royalty Pool System Sales: $158.8 million, up from $155.8 million in Q3 2024.

• Same-store sales grew 0.1% year-over-year; Pizza Pizza up 0.3%, Pizza 73 down 1.1%.

• Royalty income rose 1.9% to CAD 10.2 million for the quarter.

• Dividends declared: $5.7 million for Q3 and $17.1 million year-to-date; dividend per share unchanged.

• Payout ratio for the quarter was 111%, reducing working capital by CAD 800,000 to CAD 4 million.

Outlook and guidance

• Management expects to grow the traditional restaurant network by 2% to 3% and continue renovations through 2025.

• Anticipate strong Q4 performance driven by sports partnerships and continued menu innovation.

• Ongoing investment in digital platforms and loyalty program enhancements to improve customer retention.