Pizza Pizza Q1 Results Were Pedestrian, But I'm Maintaining My Position

2025-05-09 05:52:23 ET

Summary

• PZA:CA offers a royalty structure, with unit holders receiving distributions tied to sales of Pizza Pizza and Pizza 73 chain in Canada.
• Canadian patriotism could boost local retailers like Pizza Pizza, positioning them to gain market share from competing American-based pizza restaurants.
• Q1 results were okay, but nothing to write home about. Even if future quarters show stronger growth, I don't think management will increase their payout ratio beyond 7.75 cents this year.
• A total return of 10% for PZA:CA still seems reasonable this year, and so I'd still recommend the units to investors seeking income.

(all financial amounts are presented in Canadian Dollars, unless otherwise specified) ...

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