Boston Pizza Fnd Un (TSE:BPF.UN)
TSX:BPF.UN
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Boston Pizza Fund
(TSX:BPF.UN)
Select Model
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Rating:71Outperform
Price Target:
C$28.00
▲(21.69% Upside)
Action:ReiteratedDate:02/20/26
The score is driven primarily by solid underlying financials (steady revenue and positive, growing free cash flow) and supportive valuation (reasonable P/E and strong yield). These are tempered by higher 2025 leverage/uncertainty around margin and cash-conversion quality, plus technical indicators that look overbought, and an earnings-call watch item around payout ratio sustainability (despite strong operating momentum).
Positive Factors
Royalty business model
The Fund's royalty model converts franchise sales into recurring revenue without operating restaurants, lowering operating leverage and capex needs. This structure generates predictable cash flows tied to franchise performance and supports durable distributions and scalable upside as the brand grows.
Negative Factors
Rising leverage in 2025
An uptick in debt increases financial risk and reduces balance-sheet flexibility. Higher leverage raises interest exposure and limits capacity for acquisitions or developer support, potentially constraining the Fund's ability to fund renovations, support franchisees or maintain distributions during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Royalty business model
The Fund's royalty model converts franchise sales into recurring revenue without operating restaurants, lowering operating leverage and capex needs. This structure generates predictable cash flows tied to franchise performance and supports durable distributions and scalable upside as the brand grows.
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)11.4
Beta (1Y)0.59
Revenue Growth4.43%
EPS Growth23.32%
CountryCA
Employees189
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.52
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)1.85
Revenue Forecast (FY)C$52.50M
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
Boston 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 Bos...
Boston Pizza Fund Earnings Call Summary
Earnings Call Date:Feb 13, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive performance: record annual franchise sales, solid same-restaurant sales, growth in royalty/distribution income, higher net income and distributable cash per unit, successful marketing and significant renovation activity. Key negatives were a higher payout ratio (largely due to a one-time special distribution), increased income taxes and no openings in 2025. Management emphasized sustainable monthly distributions, a renewed development pipeline for 2026, and continued promotional initiatives, indicating confidence in ongoing momentum.Positive Updates
Record Annual Franchise Sales
Boston Pizza Restaurants achieved the highest annual total franchise sales in brand history: $976.3 million for FY2025, up 4.8% versus FY2024 ($931.7 million).
Negative Updates
Elevated Payout Ratio Due to Special Distribution
Payout ratio rose to 127.3% in Q4 2025 (vs 118.4% in Q4 2024) and 101.9% for the year (vs 99.9% in 2024), driven by distributions (including the special $0.11) increasing faster than distributable cash. Without the special distribution, Q4 and year payout ratios would have been 97.5% and 94.5%, respectively.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Franchise Sales
Boston Pizza Restaurants achieved the highest annual total franchise sales in brand history: $976.3 million for FY2025, up 4.8% versus FY2024 ($931.7 million).
Read all positive updates
Company Guidance
The call guided that the trustees approved a monthly cash distribution of $0.12 per unit for January 2026 (payable Feb. 27, 2026; record date Feb. 21, 2026) and emphasized sustainability and close monitoring of available cash balances (after a special $0.11/unit distribution paid Dec. 31, 2025); operational guidance highlighted Q1 marketing and menu initiatives (Popular Pasta Tuesday with pastas from $11.99/$15.99, Valentine’s heart‑shaped pizzas with $1 donated per pizza, gift‑card promo of $50 → $10 promotional card redeemable Jan–Mar 2026, NFL/Pepsi and upcoming Olympics/World Cup activations) and continued restaurant investment (9 renovations in Q4, 40 in 2025 and a similar ~40 renovation target for 2026, two new restaurant projects pushed from 2025 into early 2026), while key recent metrics noted were Q4 franchise sales $244.4M / FY $976.3M (+4.3% Q4, +4.8% Y/Y), SRS +3.7% Q4 / +4.7% FY, royalty income $9.8M Q4 / $39.1M FY, distribution income $3.2M Q4 / $12.8M FY, cash from operations $9.9M Q4 / $39.7M FY, distributable cash $7.9M Q4 / $31.6M FY (per unit $0.369 Q4 / $1.487 FY), and payout ratios 127.3% Q4 (97.5% ex‑special) and 101.9% FY (94.5% ex‑special); management reiterated focus on supporting franchisees and driving sustainable, long‑term growth (average sales per location ≈ $3.3M).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 | ― | 14.42 | 9.03% | 7.99% | ― | -62.68% | |
71 Outperform | ― | 11.40 | 13.06% | 6.19% | 4.43% | 23.32% | |
69 Neutral | C$523.32M | 16.62 | 10.35% | 5.98% | 1.35% | -1.11% | |
62 Neutral | C$891.86M | 16.42 | 27.32% | 5.07% | -2.54% | -10.57% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
| ― | C$50.42B | 50.42 | 25.66% | 3.58% | 19.92% | -18.34% | |
67 Neutral | C$930.33M | 7.28 | 3.64% | 3.51% | 1.38% | -64.10% |
* Consumer Cyclical Sector Average
TSE:BPF.UN
Boston Pizza Fund
25.20
9.49
60.39%
TSE:PZA
Pizza Pizza Royalty
15.69
3.38
27.41%
TSE:QSP.UN
Restaurant BrndLP
109.26
22.05
25.28%
TSE:SRV.UN
SIR Royalty Income
15.42
4.17
37.05%
TSE:MTY
MTY Food Group
40.73
2.94
7.77%
TSE:AW
A & W Food Services of Canada Inc.
37.15
7.63
25.83%
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
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