Investment Thesis
Pizza Pizza Royalty (PZRIF) (TSX: “PZA”) continues to struggle to re-accelerate its same-store sales growth. Despite several initiatives to reaccelerate its SSSG, it may continue to be a challenge to expand its business due to 1) intense competitions from other food delivery platforms, and 2) elevated Canadian household debts. Pizza Pizza currently pays an attractive dividend with a yield of 9.1%. Its shares are also significantly undervalued when compared to its historical average. However, given the limited visibility and over 100% payout ratio, we think it may be wise for investors