Canada's Pizza Pizza Royalty Q1 same store sales fall on weak consumer demand

Pizza Pizza Royalty

01/05/2026 21:40

Overview

Canada pizza royalty company's Q1 same store sales fell 4.1% amid weaker consumer demand

Adjusted EPS for Q1 declined 6.1% year-over-year

Company's restaurant network expanded by seven net locations in the quarter

Outlook

Company expects continued pressure on discretionary spending and heightened competition to impact results

Company plans to grow traditional restaurant network by 2% to 3% and continue renovations through 2026

Company expects to maintain consistent monthly dividends, supported by working capital reserve

Result Drivers

WEAK CONSUMER DEMAND - Co said sales decline was driven by continued pressure on discretionary spending and softer demand

INCREASED COMPETITION - Co cited an increasingly competitive promotional retail landscape as contributing to sales decline

LOWER TRAFFIC, HIGHER CHECK - Restaurant traffic decreased due to economic conditions and competition, while average customer check increased slightly from selective price adjustments

Company press release: ID:nCNWVZ9Bva

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
C$0.22
Q1 Adjusted earnings available for distribution to the Company and Pizza Pizza Limited
C$8.85 mln
Q1 Adjusted Income from Operations
C$7.30 mln
Q1 Basic EPS
C$0.22
Q1 Same Store Sales Growth
-4.10%


Analyst Coverage

The one available analyst rating on the shares is "hold"

The average consensus recommendation for the restaurants & bars peer group is "buy."

Wall Street's median 12-month price target for Pizza Pizza Royalty Corp is C$16.00, about 2.6% above its April 30 closing price of C$15.60

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)