Pizza Pizza Royalty ( (PZRIF) ) has released its Q4 earnings. Here is a breakdown of the information Pizza Pizza Royalty presented to its investors.
Pizza Pizza Royalty Corp. is a Canadian company that owns the rights and trademarks for Pizza Pizza and Pizza 73, operating in the quick-service restaurant sector with a focus on pizza offerings.
In its latest earnings report, Pizza Pizza Royalty Corp. announced a decrease in both same-store sales and royalty pool sales for the fourth quarter and the full year of 2024. Despite these declines, the company expanded its restaurant network significantly, adding a net total of 23 locations over the year.
Key financial metrics showed a 3.8% decrease in same-store sales for the fourth quarter and a 3.0% decrease for the year. Royalty pool sales also saw a decline, with a 2.1% drop in the quarter and a 1.2% decrease over the year. Adjusted earnings per share fell by 3.9% in the quarter and 2.7% for the year. However, the company opened 48 new restaurants in 2024, indicating a strategic focus on expansion despite challenging market conditions.
The company maintained its commitment to shareholder returns, declaring dividends of $22.9 million for the year, although the payout ratio increased to 110%, reflecting the pressure on earnings. The working capital reserve decreased due to the high payout ratio and reduced royalty income.
Looking ahead, Pizza Pizza Royalty Corp. plans to continue expanding its traditional restaurant network by 3-4% and pursue renovations, signaling a positive outlook for growth and adaptation in a competitive market environment.