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/Mis Actual Consensu

s s

Estimate

Q3 C$0.236

Adjusted

EPS

Q3 C$5.14

Adjusted mln

Net

Income

Q3 C$7.87

Adjusted mln

Income

from

Operatio

ns

Q3 Basic C$0.231

EPS

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 ( PZRIF ) 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:

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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.)