Pizza Pizza Royalty Corp. Reports Q2 2025 Results: Same Store Sales Up 2.1%

Pizza Pizza Royalty Corp. reported a 3.9% increase in Royalty Pool sales and a 2.1% rise in same-store sales for Q2 2025. Adjusted earnings per share increased 1.3%. The restaurant network grew by 3 net locations. Despite headwinds in the quick-service landscape, the company's momentum continued, driven by menu innovation and strategic sports partnerships.

Pizza Pizza Royalty Corp. (TSX: PZA) released its financial results for the second quarter and six months ended June 30, 2025, highlighting a robust performance amidst a challenging quick-service landscape. The company reported a 3.9% increase in Royalty Pool sales and a 2.1% rise in same-store sales for the quarter. Adjusted earnings per share (EPS) increased by 1.3%, while the restaurant network grew by three net locations [1].

The company's President and CEO, Paul Goddard, attributed the strong performance to menu innovation and strategic sports partnerships. "Our strong second quarter performance highlights our ongoing commitment to growth, supported by menu innovation and strategic sports partnerships," said Goddard [1].

Royalty Pool System Sales for the quarter increased 3.9% to $161.4 million, driven by a 4.1% increase in sales from the 694 Pizza Pizza restaurants and a 2.4% increase from the 100 Pizza 73 restaurants [1]. For the six months ended June 30, 2025, Royalty Pool System Sales increased 2.8% to $312.7 million, with sales from Pizza Pizza restaurants up 2.7% and from Pizza 73 restaurants up 3.3% [1].

Same-store sales growth (SSSG) increased 2.1% for the quarter and 1.6% for the six months, driven by increases in customer traffic and average customer check at both brands [1]. The company's dividend policy remained unchanged, with shareholder dividends of $5.7 million for the quarter and $11.4 million for the six months, amounting to $0.2325 and $0.4650 per share, respectively [1].

Pizza Pizza Limited (PPL) opened 8 traditional and 12 non-traditional restaurants during the quarter, while closing 5 traditional and 8 non-traditional restaurants. The company expects to grow its traditional restaurant network by 2% to 3% through 2025 [1].

The company's existing credit facility was extended for three years, with a new maturity date of April 24, 2028, and a new interest rate of 3.51% [1]. The debt-to-EBITDA ratio for the last four-quarter rolling average is 1.19:1, and the interest coverage ratio is 29.47:1 [1].

Pizza Pizza Royalty Corp. is expected to host a conference call on August 7, 2025, to discuss the results. The call details are as follows: Date: August 7, 2025; Time: 5:30 p.m. ET; Call-in number: 416-945-7677 / 888-699-1199; Recording call in number: 289-819-1450 / 888-660-6345; Available until midnight, August 21, 2025; Conference ID: 57961# [1].

References:
[1] https://finance.yahoo.com/news/pizza-pizza-royalty-corp-announces-203000756.html