Pizza Pizza Royalty Q3 adj EPS down, hurt by heightened competition

Pizza Pizza Royalty

04/11/2025 22:17

Overview

Pizza Pizza Q3 royalty pool system sales increased 2.0% yr/yr

Adjusted EPS for Q3 decreased 1.3% yr/yr

Restaurant network increased by 11 net locations

Outlook

Company plans to grow traditional restaurant network by 2% to 3% in 2025

Company investing in digital ordering and service speed to drive growth

Future dividends expected to be funded by cash flow from operations and cash reserve

Result Drivers

COMPETITION IMPACT - Heightened competition in the QSR sector affected customer traffic, contributing to a slight decrease in adjusted EPS

RESTAURANT EXPANSION - 11 net new locations added in Q3, contributing to increased royalty pool system sales

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
C$0.236
Q3 Adjusted Net Income
C$5.14 mln
Q3 Adjusted Income from Operations
C$7.87 mln
Q3 Basic EPS
C$0.231


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$17.00, about 9.4% above its November 3 closing price of C$15.41

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

Press Release: ID:nCNWxN5hDa

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(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.)