Pizza Pizza Royalty (PZA) Q4 2025 earnings summary

Executive summary

• Opened 37 new restaurants in 2025, reaching 815 in Canada and 4 in Mexico; network expanded by 18 net locations for the year.

• Same-store sales grew 0.7% at Pizza Pizza and 1.9% at Pizza 73 for the year; Q4 combined same-store sales up 0.2%, reversing 2024 declines.

• Q4 saw resilience despite deteriorating macroeconomic conditions and reduced consumer spending.

• Marketing partnerships and promotions, including with Vladimir Guerrero Jr. and Ryan Lomberg, drove engagement.

• Adjusted EPS was flat at $0.245 in Q4 and decreased 0.2% to $0.951 for the year.

Financial highlights

• Royalty income increased 2.3% year-over-year to CAD 10.6 million in Q4; Royalty Pool sales rose 2.2% in Q4 and 2.4% for the year, reaching $164.0M and $635.5M.

• Pizza Pizza Q4 sales: $140.4M (+2.0% YoY); Pizza 73 Q4 sales: $23.6M (+3.3% YoY).

• Administrative expenses decreased to CAD 211,000 from CAD 221,000 year-over-year.

• Shareholder dividends declared at CAD 5.7 million (23.25 cents/share) in Q4, consistent with prior year; payout ratio at 105%.

• Adjusted earnings available for shareholder dividends: $5.43M in Q4, $20.78M for the year.

Outlook and guidance

• Management expects continued headwinds from low consumer confidence, rising costs, and macro uncertainty.

• Plans to relaunch website, mobile apps, and loyalty platform in 2026 to enhance digital engagement.

• Disciplined approach to new restaurant openings, focusing on long-term profitability amid inflationary pressures.

• Management expects 2–3% growth in the traditional restaurant network and continued renovations in 2026.

• Dividend policy aims for consistent monthly distributions, funded by operations and cash reserves.