DPZ - Pizza Pizza's Turnaround May Take More Time Than Anticipated
Investment Thesis
Pizza Pizza Royalty (OTC:PZRIF) ((TSX:PZA)) delivered sixth consecutive quarters of declining same-store sales growth in Q4 2018. While Pizza Pizza has several growth initiatives to turnaround its business, the company continues to face some headwinds such as high Canadian household debts, a weak economy in Alberta, and competition from other delivery services. Pizza Pizza is currently trading at a discount to its peers and has an attractive dividend yield of 8.6%. For income investors, Pizza Pizza may not be a bad choice. However, we prefer companies with better growth visibilities.