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:64Neutral
Price Target:
C$25.00
▲(8.65% Upside)
Action:Downgraded
Date:05/13/26
The score is driven by solid underlying financial performance and attractive valuation (moderate P/E and high yield), partially offset by weak technical momentum. The latest earnings call adds a meaningful risk check: while sales and distributable cash improved and the distribution was raised, payout ratios above 100% and non-cash drivers of net income raise sustainability and quality-of-earnings concerns.
Positive Factors
Royalty-based recurring revenue
The fund’s core asset is royalties on franchise sales, creating predictable, low-capital recurring cashflows tied to system sales. Because the fund does not operate restaurants, cash generation depends on franchise economics and brand health, offering durable distributable cash if system sales remain stable.
Negative Factors
Distribution coverage above 100%
Distributions slightly exceed distributable cash, indicating the fund is paying out more than it generates. Persistently >100% payout strains reserves or forces reliance on balance-sheet actions, threatening distribution durability and requiring corrective measures to restore sustainable coverage.
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Positive Factors
Negative Factors
Royalty-based recurring revenue
The fund’s core asset is royalties on franchise sales, creating predictable, low-capital recurring cashflows tied to system sales. Because the fund does not operate restaurants, cash generation depends on franchise economics and brand health, offering durable distributable cash if system sales remain stable.
Read all positive factors
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)10.6
Beta (1Y)0.59
Revenue Growth4.59%
EPS Growth61.36%
CountryCA
Employees189
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)1.72
Shares Outstanding21,278,563
10 Day Avg. Volume33,335
30 Day Avg. Volume27,388
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)1.66
Price to Sales (P/S)9.27
P/FCF Ratio12.11
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)1.73
Revenue Forecast (FY)C$52.80M
Boston Pizza Fund Business Overview & Revenue Model
Company Description
Boston 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 Bost...
How the Company Makes Money
The fund makes money by earning royalty income tied to the topline sales performance of the Boston Pizza restaurant system within its royalty pool. Boston Pizza restaurants are operated primarily by franchisees, who generate revenue from food and ...
Boston Pizza Fund Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and top-line performance with franchise sales and same-restaurant sales up 3.1%, modest improvements in distributable cash and a distribution increase (+3.3%). Guest traffic and promotional momentum remain strong and pipeline activity for renovations and new sites looks healthy. Key cautions include a payout ratio above 100% on both a quarterly and trailing 12-month basis, meaning distributions slightly exceed distributable cash, the Q1 net income increase being materially driven by non-cash fair value gains, modest absolute distributable cash growth, and rising tax/interest expenses. Management also flagged geopolitical and supply-chain risks and emphasized close monitoring of cash balances and distribution sustainability.Positive Updates
Franchise and Same-Restaurant Sales Growth
Franchise sales from Royalty Pool restaurants were $238.4M for Q1, up 3.1% year-over-year; same-restaurant sales increased 3.1%, driven principally by higher guest traffic and momentum in takeout and delivery.
Negative Updates
Payout Ratio Above 100%
The Fund's payout ratio was 101.6% for the quarter (vs. 100.2% prior year) and 102.2% on a trailing 12-month basis as at March 31, 2026, indicating distributions slightly exceed distributable cash generation.
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Q1-2026 Updates
Positive
Negative
Franchise and Same-Restaurant Sales Growth
Franchise sales from Royalty Pool restaurants were $238.4M for Q1, up 3.1% year-over-year; same-restaurant sales increased 3.1%, driven principally by higher guest traffic and momentum in takeout and delivery.
Read all positive updates
Company Guidance
Management's guidance was cautiously constructive: Q1 franchise sales for the Royalty Pool were $238.4 million (+3.1% YoY) with same‑restaurant sales +3.1%, royalty income $9.5M (vs. $9.2M), distribution income $3.1M (vs. $3.0M) from 372 Royalty Pool restaurants, net income $12.2M (vs. $6.3M), cash from operations $9.6M (vs. $9.3M), distributable cash $7.5M (+2.9% or $0.2M) or $0.354/unit (+$0.01), Q1 payout ratio 101.6% (trailing 12‑month 102.2%), and trustees increased the monthly distribution to $0.124/unit (+$0.004 or 3.3%, annualized $1.488); operationally there were 0 openings, 2 closures and 11 renovations in Q1 with pipeline projects underway (Revelstoke, Western Ontario, Dryden, The Pas). Looking ahead management expects Q2 promotional support (playoff, World Cup and summer/Live Nation campaigns) to drive traffic but will closely monitor cash balances, distribution sustainability and potential supply‑chain/cost risks from ongoing global trade and geopolitical uncertainty.Boston Pizza Fund Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.78M | 51.89M | 49.51M | 49.19M | 45.47M | 35.15M |
| Gross Profit | 50.72M | 51.62M | 49.51M | 49.19M | 45.47M | 35.15M |
| EBITDA | 58.05M | 65.14M | 51.97M | 47.30M | 46.96M | 554.00K |
| Net Income | 36.61M | 42.17M | 31.87M | 29.57M | 30.58M | 37.41M |
Balance Sheet | ||||||
| Total Assets | 435.95M | 449.45M | 422.89M | 413.06M | 413.70M | 411.31M |
| Cash, Cash Equivalents and Short-Term Investments | 5.31M | 3.89M | 4.57M | 4.59M | 5.21M | 5.16M |
| Total Debt | 86.57M | 141.54M | 97.06M | 123.76M | 86.44M | 126.02M |
| Total Liabilities | 147.30M | 159.41M | 142.66M | 134.17M | 133.12M | 135.51M |
| Stockholders Equity | 288.65M | 290.05M | 280.22M | 278.89M | 280.58M | 275.80M |
Cash Flow | ||||||
| Free Cash Flow | 38.61M | 39.70M | 38.12M | 37.93M | 34.35M | 29.18M |
| Operating Cash Flow | 38.61M | 39.70M | 38.12M | 37.93M | 34.35M | 30.48M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1.29M |
| Financing Cash Flow | -38.49M | -40.38M | -38.14M | -38.55M | -34.30M | -33.01M |
Boston Pizza Fund Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ― | 23.23 | 9.03% | 7.99% | ― | -18.72% | |
69 Neutral | C$885.33M | 6.40 | 18.59% | 3.51% | 0.63% | 2106.19% | |
64 Neutral | ― | 10.64 | 13.06% | 6.19% | 4.59% | 61.36% | |
64 Neutral | C$429.32M | 17.18 | 10.21% | 5.98% | 1.17% | -1.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
| ― | C$47.91B | 18.97 | 27.14% | 3.58% | 8.57% | -4.22% | |
55 Neutral | C$865.45M | 23.45 | 25.77% | 5.07% | -0.78% | 313.58% |
* Consumer Cyclical Sector Average
TSE:BPF.UN
Boston Pizza Fund
23.93
6.35
36.11%
TSE:PZA
Pizza Pizza Royalty
12.70
-1.01
-7.33%
TSE:QSP.UN
Restaurant BrndLP
104.73
10.11
10.69%
TSE:SRV.UN
SIR Royalty Income
15.55
3.46
28.66%
TSE:MTY
MTY Food Group
38.76
-2.31
-5.62%
TSE:AW
A & W Food Services of Canada Inc.
36.05
4.55
14.45%
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.