Canada's Pizza Pizza Royalty Q4 same store sales edge up

Overview

• Canada pizza restaurant royalty firm's Q4 same store sales grew 0.2% after prior yr decline

• Adjusted EPS for Q4 was flat compared to last year

• Q4 Royalty Pool sales rose 2.2%, driven by new restaurants added

Outlook

• Company expects to grow traditional restaurant network by 2% to 3% in 2026

• Company expects future dividends will continue to be funded entirely by cash flow from operations and the cash reserve

Result Drivers

• HIGHER AVERAGE CHECK - Co said Q4 sales benefited from increased average customer check, driven by more higher ticket delivery orders

• SOFTENED CUSTOMER TRAFFIC - Co said restaurant traffic decreased in Q4 due to economic conditions and heightened competition

Company press release: ID:nCNWkQ2sJa

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the restaurants & bars peer group is "buy."

• Wall Street's median 12-month price target for Pizza Pizza Royalty Corp is C$16.00, about 0.2% above its March 24 closing price of C$15.97

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

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