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Boston Pizza Fnd Un (TSE:BPF.UN)
TSX:BPF.UN
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Boston Pizza Fund
(TSX:BPF.UN)
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Rating:79Outperform
Price Target:
C$26.00
▲(12.99% Upside)
The score is driven primarily by solid financial performance (strong free cash flow and improving debt position) and supportive valuation (moderate P/E with a high dividend yield). Technicals remain favorable due to a clear uptrend, but overbought readings increase near-term risk. Earnings call insights reinforce steady sales and cash distribution momentum, with manageable cost headwinds.
Positive Factors
Stable Revenue Stream
The royalty-based revenue model provides a stable and predictable income stream, reducing volatility and enhancing financial stability.
Strong Cash Flow Management
Efficient cash flow management ensures liquidity and supports dividend payments, crucial for maintaining investor confidence and funding operations.
Consistent Revenue Growth
Consistent revenue growth indicates effective market positioning and resilience, supporting long-term business sustainability and expansion potential.
Negative Factors
Slight Increase in Debt
Increasing debt levels could pressure financial flexibility and increase interest expenses, potentially affecting future profitability and growth.
Limited Reinvestment in Growth
Limited reinvestment may hinder long-term growth and competitiveness, as the company may miss opportunities to expand or innovate.
Decreasing Net Profit Margin
A decreasing net profit margin could indicate rising costs or pricing pressure, potentially impacting future earnings and shareholder returns.
Boston Pizza Fund (BPF.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
N/A
Dividend Yield6.19%
Average Volume (3M)27.39K
Price to Earnings (P/E)13.4
Beta (1Y)0.53
Revenue Growth4.43%
EPS Growth23.32%
CountryCA
Employees189
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.49
Shares Outstanding21,278,563
10 Day Avg. Volume33,335
30 Day Avg. Volume27,388
Financial Highlights & Ratios
PEG Ratio1.34
Price to Book (P/B)1.33
Price to Sales (P/S)7.51
P/FCF Ratio9.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Boston Pizza Fund Business Overview & Revenue Model
Company DescriptionBoston Pizza Royalties Income Fund operates as a limited purpose open-ended trust. The company, indirectly through Boston Pizza Royalties Limited Partnership, owns trade-marks used by Boston Pizza International Inc. It operates and franchises Boston Pizza restaurants. As of December 31, 2021, the company operated 383 restaurants in the royalty pool in Canada. The company was founded in 2002 and is based in Richmond, Canada.
How the Company Makes MoneyBoston Pizza Fund makes money primarily through the collection of royalty income from Boston Pizza International Inc. (BPI), which operates the Boston Pizza restaurants. The fund receives a percentage of the franchise revenues generated by the Boston Pizza restaurants in the royalty pool. This percentage is based on the top-line sales of these restaurants, providing the fund with a stable and predictable revenue stream. Additionally, the fund may benefit from any expansion of the restaurant chain, as new locations are added to the royalty pool, potentially increasing the fund's income. The fund's earnings are also influenced by factors such as overall economic conditions, consumer spending habits, and the performance of the restaurant industry in Canada.
Boston Pizza Fund Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 13, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance by Boston Pizza with record franchise sales driven by successful promotions and an increase in same-restaurant sales. While there are some challenges such as increased interest and income tax expenses, the overall outlook remains positive with continued growth and effective marketing strategies.Q3-2025 Updates
Positive Updates
Record Franchise Sales
Boston Pizza delivered its third consecutive quarter of record franchise sales with $248.9 million for the quarter and $731.9 million year-to-date, representing increases of 4.3% and 4.9%, respectively, compared to the same periods last year.
Successful Promotions and Marketing Initiatives
Promotions such as the Kids Cards promotion raised over $1 million for local charities, and marketing initiatives like the partnership with Live Nation and the Kids Eat Free promotion significantly engaged customers.
Increase in Distributable Cash and Royalty Income
Distributable cash increased by 4.9% for the quarter and 3.8% year-to-date, while royalty income saw an increase to $10 million for the quarter and $29.3 million year-to-date.
Positive Same-Restaurant Sales Growth
Same-restaurant sales increased by 4.1% for the quarter and 5.0% year-to-date, driven by momentum in takeout and delivery and effective promotional initiatives.
Increased Net and Comprehensive Income
The Fund's net and comprehensive income increased to $10.4 million for the quarter compared to $9.4 million for the third quarter of 2024.
Negative Updates
Higher Interest Expenses
There was a $0.2 million increase in net interest expense for the quarter.
Increase in Income Taxes Expense
Income taxes expense increased by $1.2 million year-to-date.
Company Guidance
During Boston Pizza's third quarter 2025 conference call, key financial metrics highlighted a robust performance, with franchise sales reaching $248.9 million for the quarter and $731.9 million year-to-date, reflecting increases of 4.3% and 4.9%, respectively, compared to the previous year. Same-restaurant sales grew by 4.1% for the quarter and 5.0% year-to-date. The Fund's royalty income was reported at $10 million for the quarter and $29.3 million year-to-date, alongside distribution income of $3.3 million and $9.6 million, respectively. Net and comprehensive income rose to $10.4 million for the quarter, up by $1 million from the same period in 2024. The payout ratio slightly decreased to 88.8% from 88.9% year-over-year, while distributable cash per unit increased by 5% to $0.40 for the quarter. The third quarter also saw the renovation of 16 restaurants, contributing to 31 renovations year-to-date, and the successful implementation of promotional strategies like a partnership with Live Nation and the Kids Cards campaign, which raised over $1 million for charity.Boston Pizza Fund Financial Statement Overview
Summary
Strong and improving cash generation (operating and free cash flow about $38.1M in 2024) supports earnings quality, and leverage improved with total debt down in 2024. A key offset is unusually high and sometimes inconsistent margin patterns for a restaurant-related business, reducing confidence in comparability and underlying operating profitability trends despite strong reported results.Income Statement
Revenue rebounded strongly in 2024 (+70.8% YoY) after steadier growth in 2023, and profits improved with net income rising to ~$31.9M (from ~$29.6M). Reported profitability is exceptionally high (net margin ~64% in 2024) and has been consistently strong since 2022, but several line items look unusual for a restaurant business (e.g., gross margin near 100% and 2021 showing a negative EBIT margin alongside very high net margin), which reduces confidence in earnings quality and comparability across years.78
Positive
Balance Sheet
Leverage appears manageable with debt-to-equity in the ~0.31–0.36 range across 2019–2024 and equity building to ~$280.2M in 2024. Total debt declined meaningfully in 2024 (~$97.1M vs ~$123.8M in 2023), improving financial flexibility. Returns on equity are solid and fairly steady (~10–14% range recently), though debt levels have fluctuated year-to-year and the business is not low-leverage, leaving some sensitivity to refinancing or cost-of-capital changes.71
Positive
Cash Flow
Cash generation is strong and improving: operating cash flow was ~$38.1M in 2024 (up slightly from 2023) and free cash flow was also ~$38.1M, with very strong free cash flow growth in 2024 (+11.48x vs 2023). Free cash flow closely tracks net income (about 1.0x in 2022–2024), supporting earnings convertibility. A key weakness is volatility in cash coverage of earnings in prior years (notably weak in 2019 and 2021), suggesting periodic swings in working capital or non-cash income components.84
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.78M | 49.51M | 49.19M | 45.47M | 35.15M | 32.64M |
| Gross Profit | 50.72M | 49.51M | 49.19M | 45.47M | 35.15M | 32.38M |
| EBITDA | 58.05M | 51.97M | 47.30M | 46.96M | 554.00K | 13.64M |
| Net Income | 36.61M | 31.87M | 29.57M | 30.58M | 37.41M | 9.57M |
Balance Sheet | ||||||
| Total Assets | 435.95M | 422.89M | 413.06M | 413.70M | 411.31M | 390.80M |
| Cash, Cash Equivalents and Short-Term Investments | 5.31M | 4.57M | 4.59M | 5.21M | 5.16M | 7.70M |
| Total Debt | 86.57M | 97.06M | 123.76M | 86.44M | 126.02M | 91.58M |
| Total Liabilities | 147.30M | 142.66M | 134.17M | 133.12M | 135.51M | 133.90M |
| Stockholders Equity | 288.65M | 280.22M | 278.89M | 280.58M | 275.80M | 256.90M |
Cash Flow | ||||||
| Free Cash Flow | 38.61M | 38.12M | 37.93M | 34.35M | 29.18M | 21.88M |
| Operating Cash Flow | 38.61M | 38.12M | 37.93M | 34.35M | 30.48M | 22.87M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | 0.00 | -1.29M | -982.00K |
| Financing Cash Flow | -38.49M | -38.14M | -38.55M | -34.30M | -33.01M | -16.92M |
Boston Pizza Fund Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ― | 13.39 | 13.06% | 6.19% | 4.43% | 23.32% | |
73 Outperform | C$40.18B | 23.43 | 25.66% | 3.58% | 19.92% | -18.34% | |
73 Outperform | C$543.66M | 17.03 | 10.19% | 5.98% | 1.35% | -1.11% | |
72 Outperform | ― | 16.53 | 9.03% | 7.99% | ― | -62.68% | |
68 Neutral | C$987.89M | 29.12 | 3.64% | 3.51% | 1.38% | -64.10% | |
62 Neutral | C$895.60M | 31.26 | 57.97% | 5.07% | -2.54% | -10.57% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
TSE:BPF.UN
Boston Pizza Fund
24.00
7.74
47.60%
TSE:PZA
Pizza Pizza Royalty
16.30
4.07
33.29%
TSE:QSP.UN
Restaurant BrndLP
92.21
2.74
3.06%
TSE:SRV.UN
SIR Royalty Income
15.65
3.96
33.86%
TSE:MTY
MTY Food Group
43.25
-3.84
-8.15%
TSE:AW
A & W Food Services of Canada Inc.
37.32
5.45
17.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.