Boston Pizza Fund (BPF.UN) AI Stock Analysis

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Boston Pizza Fund

(TSX:BPF.UN)

Rating:74Outperform

Price Target:―

Boston Pizza Fund demonstrates strong financial health, reflected in its solid income growth and efficient cash management. Despite a slight increase in debt, the balance sheet remains strong. The technical analysis suggests the stock may be consolidating, with no clear momentum trend. The valuation is reasonable, offering an attractive dividend yield, which supports its appeal to income investors.

Boston Pizza Fund (BPF.UN) vs. iShares MSCI Canada ETF (EWC)

Market Cap

N/A

Dividend Yield6.56%

Average Volume (3M)31.66K

Price to Earnings (P/E)13.7

Beta (1Y)0.61

Revenue Growth0.64%

EPS Growth8.65%

CountryCA

Employees189

SectorConsumer Cyclical

Sector Strength68

IndustryRestaurants

Share Statistics

EPS (TTM)0.30

Shares Outstanding21,278,563

10 Day Avg. Volume21,191

30 Day Avg. Volume31,659

Financial Highlights & Ratios

PEG Ratio-2.58

Price to Book (P/B)1.43

Price to Sales (P/S)0.00

P/FCF Ratio11.06

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

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:May 09, 2025

(Q3-2024)

% Change Since: 2.14%|

Next Earnings Date:Aug 01, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted the resilience and stability of Boston Pizza's franchise sales amidst challenging macroeconomic conditions. Successful marketing campaigns and an increase in net income were positive points, but decreases in same-restaurant sales and distributable cash, along with higher payout ratios, indicate ongoing challenges.

Q3-2024 Updates

Positive Updates

Successful Marketing Campaigns

Boston Pizza's summer patio campaign and fall-themed menu resonated well with guests, generating over $1 million for the Boston Pizza Foundation, a 6% increase from 2023.

Increase in Net and Comprehensive Income

The Fund's net and comprehensive income increased by $4.5 million for the quarter compared to the third quarter of 2023, primarily due to a $6.8 million increase in fair value gain.

Resilience in Franchise Sales

Franchise sales levels held steady through the third quarter, showcasing the resilience of Boston Pizza's business despite macroeconomic challenges.

Positive Trends in Restaurant Development

Two new restaurants opened year-to-date, and 18 underwent renovations, showing progress in restaurant development.

Negative Updates

Decrease in Franchise Sales and Same-Restaurant Sales

Franchise sales from restaurants in the Royalty Pool decreased by 0.6% for the quarter and 0.1% year-to-date. Same-restaurant sales were negative 0.6% for the quarter.

Decrease in Distributable Cash

The Fund generated distributable cash of $8.1 million for the quarter, a decrease of $0.2 million or 1.8% compared to the same period in 2023.

Increase in Payout Ratio

The Fund's payout ratio increased to 88.9% for the quarter compared to 82.9% in the third quarter of 2023, indicating higher distributions paid and decreased distributable cash.

Traffic Challenges

The decline in same-store sales was primarily due to lower visitation trends, despite higher average guest checks driven by menu price increases.

Company Guidance

During Boston Pizza's third-quarter 2024 earnings call, the company reported franchise sales of $238.6 million for the quarter, reflecting a 0.6% decrease compared to the previous year. Year-to-date franchise sales reached $697.4 million, showing a slight 0.1% decline. Same-restaurant sales were down 0.6% for the quarter but up 0.1% year-to-date. The Fund's net and comprehensive income increased significantly to $9.4 million for the quarter, primarily due to a $6.8 million rise in fair value gain. Distributable cash per unit was $0.381 for the quarter, a slight decrease from the previous year. The Fund's payout ratio rose to 88.9% from 82.9% in the prior year. Boston Pizza highlighted promotional activities, including successful summer and fall campaigns, which contributed to stable sales amidst challenging economic conditions.

Boston Pizza Fund Financial Statement Overview

Summary

Boston Pizza Fund exhibits solid financial health with consistent revenue and profit growth, strong equity base, and efficient cash flow management. The income statement, balance sheet, and cash flow scores reflect a well-managed company, though there is a slight increase in debt.

Income Statement

Very Positive

The income statement shows a strong performance with consistent revenue growth over the years. The gross profit margin is consistently high, indicating effective cost management. The net profit margin is solid, though it has slightly decreased from the previous year due to a lower EBIT. The company has shown resilience with increasing revenue despite industry challenges.

Balance Sheet

Positive

The balance sheet is stable with a favorable debt-to-equity ratio that suggests manageable leverage and a healthy equity base. However, there is a slight increase in total debt year-on-year. Return on Equity (ROE) is robust, demonstrating effective use of equity to generate profits. The equity ratio remains strong, indicating a solid capital structure.

Cash Flow

Very Positive

Cash flow analysis reflects strong operational cash flow, with a consistent increase in free cash flow over the years. The operating cash flow to net income ratio is healthy, indicating efficient conversion of earnings to cash. However, the lack of significant investing cash flow suggests limited reinvestment in growth initiatives.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
49.99M	49.51M	49.19M	45.47M	35.15M	32.64M
	Gross Profit
49.78M	49.23M	48.91M	45.21M	35.15M	32.38M
	EBIT
48.45M	47.80M	47.70M	44.08M	27.56M	25.90M
	EBITDA
49.11M	51.97M	47.30M	45.09M	50.23M	23.38M
	Net Income Common Stockholders
29.75M	31.87M	29.57M	30.58M	37.41M	9.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.59M	4.57M	4.59M	5.21M	5.16M	7.70M
	Total Assets
413.06M	422.89M	413.06M	413.70M	411.31M	390.80M
	Total Debt
86.50M	97.06M	86.50M	86.44M	87.96M	91.58M
	Net Debt
81.91M	92.49M	81.91M	81.23M	82.80M	83.88M
	Total Liabilities
134.17M	142.66M	134.17M	133.12M	135.51M	133.90M
	Stockholders Equity
278.89M	280.22M	278.89M	280.58M	275.80M	256.90M
Cash Flow		Free Cash Flow
36.35M	38.12M	37.93M	34.35M	29.18M	21.88M
	Operating Cash Flow
36.35M	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
-38.45M	-38.14M	-38.55M	-34.30M	-33.01M	-16.92M

Boston Pizza Fund Technical Analysis

Technical Analysis Sentiment

Positive

Last Price19.06

Price Trends

50DMA

17.88

Positive

100DMA

17.37

Positive

200DMA

16.99

Positive

Market Momentum

MACD

0.37

Positive

RSI

64.96

Neutral

STOCH

61.69

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BPF.UN, the sentiment is Positive. The current price of 19.06 is above the 20-day moving average (MA) of 18.88, above the 50-day MA of 17.88, and above the 200-day MA of 16.99, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 64.96 is Neutral, neither overbought nor oversold. The STOCH value of 61.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BPF.UN.

Boston Pizza Fund Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPF.UN	74 Outperform		13.67	10.55%	6.56%	0.64%	8.65%
Sector *	62 Neutral	$6.83B	11.28	2.95%	3.88%	2.70%	-24.56%
PZRIF		$360.41M	16.02	10.29%	6.18%	―	―
DII.A		C$47.32M	―	-159.64%	―	―	―
GH	76 Outperform	C$239.41M	11.92	17.99%	4.62%	-1.19%	-2.42%
ICE	71 Outperform	C$51.68M	18.70	5.42%	3.10%	9.07%	124.97%
KEG.UN	67 Neutral		10.95	17.96%	6.19%	-2.67%	-66.51%

* Consumer Cyclical Sector Average

Performance Comparison

TSE:BPF.UN

Boston Pizza Fund

19.06

4.31

29.22%

PZRIF

Pizza Pizza Royalty

10.85

1.88

20.96%

TSE:DII.A

Dorel Ind Inc A MV

1.50

-5.45

-78.42%

TSE:GH

Gamehost

11.61

1.80

18.35%

TSE:ICE

Canlan Ice Sports

3.88

0.10

2.65%

TSE:KEG.UN

Keg Royalties Fund

18.35

5.27

40.29%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.