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Pizza Pizza Royalty Corp. (PZRIF) Q3 2024 Earnings Call Transcript Summary

Futu News ·  Nov 5 11:20  · Conference Call

The following is a summary of the Pizza Pizza Royalty Corp. (PZRIF) Q3 2024 Earnings Call Transcript:

Financial Performance:

  • Pizza Pizza Royalty Corp reported a 5.3% decrease in same-store sales across both Pizza Pizza and Pizza 73 brands.

  • Royalty Pool system sales decreased by 4.6% totaling $155.8 million.

  • The partnership's royalty income earned as a percentage of the Royalty Pool sales decreased by 4.4% to $10 million.

  • Shareholder dividends declared were $5.7 million for the quarter, resulting in a payout ratio of 109%.

  • Working capital decreased by $500,000, ending the quarter at $6.3 million.

Business Progress:

  • Opened 8 new restaurant locations in Q3 with ongoing expansion in Canada and Mexico.

  • Significant focus on value offerings and promotional strategies to enhance sales.

  • Leveraged technology and digital platforms to boost customer access and convenience.

  • Introduced several new menu items, including a collaborative effort with Tabasco.

Opportunities:

  • Capitalized on savings due to more consumers choosing pickup over delivery, aligning with ongoing omnichannel strategy enhancements.

  • The new XXL pizza at Pizza 73, priced at $19.99, became a popular value offering, boosting sales.

  • Collaborations and event partnerships like the Calgary Stampede and Montreal's Pride events provided opportunities to enhance brand visibility.

Risks:

  • Heightened competition and aggressive promotional tactics by competitors challenged sales volumes and growth.

  • Economic pressures led to a decline in consumer spending affecting traffic and flat average ticket values in both restaurant brands.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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