- Pizza Pizza (TSX:PZA) served up good news for investors when it reported growth among its businesses in its Q1 2024 financial results
- Pizza Pizza Royalty Corp. reported steady growth in same-store sales with a 1.7 per cent increase in same-store sales for Q1 2024, showing a clear sustained consumer demand
- Royalty pool sales witnessed a notable increase of 4.3 per cent during the quarter, reflecting Pizza Pizza’s popularity among consumers
- Pizza Pizza stock opened trading at C$13.62 a share
Pizza Pizza (TSX:PZA) served up good news for investors when it reported growth among its businesses in its Q1 2024 financial results.
The Canadian franchisor and operator of quick-service restaurants reported robust financial performance for the quarter ended March 31, 2024.
Key performance indicators
Pizza Pizza Royalty Corp. reported steady growth in same-store sales with a 1.7 per cent increase in same store sales for Q1 2024, showing a clear sustained consumer demand.
Royalty pool sales witnessed a notable increase of 4.3 per cent during the quarter, reflecting Pizza Pizza’s popularity among consumers.
Adjusted earnings per share (EPS) for the quarter increased by 3.1 per cent to $0.23 compared with the same period in 2023, indicating improved operational efficiency and effective cost management.
The company expanded its restaurant network by five net locations, further enhancing its market presence and catering to growing consumer demand for its products and services.
On Jan. 1, the number of restaurants in the company’s royalty pool increased by 31 locations, reaching a total of 774 restaurants. This expansion includes 672 Pizza Pizza restaurants and 102 Pizza 73 restaurants. The number of restaurants in the Royalty Pool will remain unchanged throughout 2024.
Financial highlights
- Working capital stood at C$7.2 million as of March 31, 2024, compared with C$8.2 million in Q4 2023
- Total system sales for Q1 amounted to C$148.9 million, showing a significant increase over the previous quarter’s C$142.7 million
- Fully diluted basic EPS increased by 6.8 per cent to $0.235 for the quarter, highlighting the company’s ability to generate value for shareholders
“We are pleased to report our 12th consecutive quarter of positive same-store sales growth,” Paul Goddard, president and CEO of Pizza Pizza Ltd. said in a statement. “We continue to focus on operational excellence and enhancing brand image and exposure by investing heavily in relevant value-oriented menu offerings, food and technology innovation, and owning key sales driving occasions. We feel this strategy will continue to improve the customer experience at our restaurants while driving leadership in the marketplace at a time when customers are feeling pressure on their spending.”
Pizza Pizza Royalty Corp. is a franchise-oriented restaurant business that indirectly owns Pizza Pizza and Pizza 73 and operates primarily in Ontario, where it leads the pizza quick service restaurant segment.
Pizza Pizza stock (TSX:PZA) opened trading at C$13.62 a slice. While its stock is down 3.4 per cent since this time last year, it has risen more than 34 per cent in the past five years.
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