# Pizza Pizza Royalty Income Fund (PZA.UN)



## KaeJS (Sep 28, 2010)

Thoughts?

http://www.google.com/finance?q=TSE%3APZA.UN


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## m3s (Apr 3, 2010)

It's the worst pizza I've ever eaten... but Canadians are no Italians


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## Dmoney (Apr 28, 2011)

I bought Boston Pizza income fund probably close to a year and a half ago and it has returned just over 20% including distributions. If the structure is the same, it's a great way to keep pace with inflation while getting a substantial yield.

For BPF.UN it's I think 4% of top line for all the stores in the fund, so as input prices go up, menu prices go up, top line goes up and the royalties increase. The good part is that there is no operational risk. If a store/restaurant goes bankrupt, it is removed from the royalty pool, and the equivalent # of shares/units is taken away from the parent company, so there is no net loss to the individual unitholder. Same if a new store/restaurant is added. The parent company gets the # of shares/units equivalent to the additional royalties in the pool.

I also bought the KEG.UN fund about 6 months ago, only a 6% total return to date but similar story to Boston Pizza.

All this to say I do like the model, don't know Pizza Pizza's fund structure that well, but if you think that the average store will increase its top line then it's a good investment.


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## Eder (Feb 16, 2011)

I don't like Pizza Pizza product...no idea how people can eat it. This makes me worry about this funds future.

I like most Boston Pizza restaurants and their menu, I think that stock has legs.


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## crazyjackcsa (Aug 8, 2010)

The food industry is a tough row to hoe. For every McDonalds, there is a Prizm.


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## m3s (Apr 3, 2010)

I thought income trusts were dead. Is Pizza Pizza/Boston Pizza paying out income or dividends? Taxed as cdn dividends or income?

Prizm is a good example of how food trends can change, KFC Taco Bell Pizza Hut used to do well


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## Dmoney (Apr 28, 2011)

Distributions are considered eligible dividends if they pay the SIFT tax.


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## webber22 (Mar 6, 2011)

PZA.UN spits out roc in addition to dividends. The business model is great, the yield is 8%, growth is good. However the trading volume is so low that it could be hard to exit your positions and if a big player exits their holdings, the share price can drop down substantially, recovering eventually. 

I hold BPF.UN since it pays out all dividends, higher 9% yield, slightly higher trading volumes and has a more diversified group of restaurants, more popular out west although some stores have recently opened in the east.


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## ddkay (Nov 20, 2010)

Pizza Pizza really need to work on their dough, I think the cardboard taste comes from the dough being way too dry, also their spinach and mushrooms smell like they've been soaked in industrial waste


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## andrewf (Mar 1, 2010)

I don't like the look of the chart. Upside is fairly limited due to the nature of the business. As a yield play, I've seen better. Bottom line: don't do it!


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## doctrine (Sep 30, 2011)

I like BPF but they are also paying out a substantial ROC at the moment (~40%?) in order to keep the yield high. If they can lower it below 15% I will start looking for an entry point.


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## webber22 (Mar 6, 2011)

PZA.UN has the ROC, not BPF


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## Eclectic12 (Oct 20, 2010)

mode3sour said:


> I thought income trusts were dead. Is Pizza Pizza/Boston Pizza paying out income or dividends? Taxed as cdn dividends or income?


If you thought they were dead, you must have missed the threads here on CMF. There were several leading up to the Jan 1, 2011 deadline trying to figure out which trusts were doing what. 

Some like RioCan meet the changed SIFT definition, meaning their taxes did not change. 

For the rest who were going to have pay more taxes:
a) most converted to a corporation.
b) some are going to convert years after the deadline when their tax loss pools are depleted.
c) some decided to stay as-is and pay the tax.

Boston Pizza Income Fund for example, used to have a big banner on their distributions page to highlight that the drop from the Dec 2010 $0.115 to the Jan 2011 $0.084 monthly distribution was due to the increased taxes being paid.

It is interesting though, as I'd have thought paying the additional tax would make all of the distributions eligible yet this FAQ from their web site says:



> Approximately 5-10% of the annual distribution is treated as a tax deferred return of capital with the remaining balance considered taxable income from property. The specific tax treatment will be reported to unitholders annually.
> 
> The following table provides a history of the distribution breakdown:
> 
> ...



Source: http://www.bpincomefund.com/en/faq.aspx

I'm not finding an easy source for the Pizza Pizza one.

Cheers


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## Dmoney (Apr 28, 2011)

ROC is even more favourable than dividend. It reduces the ACB, so taxed as capital gains down the road. Tax free until the units are actually sold. As far as yield plays go, these are some of my favourite plays. By definition they keep up with inflation, since as prices increase, royalties increase.

Also, don't look at the makeup of distributions when establishing if they are sustainable. If they have more cash flowing in than out, they are sustainable. The makeup of distributions are independant of this. 



andrewf said:


> I don't like the look of the chart. Upside is fairly limited due to the nature of the business. As a yield play, I've seen better. Bottom line: don't do it!


What have you seen that's better? I'm getting roughly 10% yield on cost right now and that's after the cut due to new tax rules. I'd love to get into a better alternative...


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## Eclectic12 (Oct 20, 2010)

Dmoney said:


> ROC is even more favourable than dividend. It reduces the ACB, so taxed as capital gains down the road. Tax free until the units are actually sold. As far as yield plays go, these are some of my favourite plays. By definition they keep up with inflation, since as prices increase, royalties increase.
> 
> Also, don't look at the makeup of distributions when establishing if they are sustainable. If they have more cash flowing in than out, they are sustainable. The makeup of distributions are independant of this.
> 
> [...]


Hmmm ... the Return of Capital (RoC) situation described above is half the picture. Specifically - it is what happens while the updated Adjusted Cost Base (ACB) is zero or positive. 

Where the ACB falls negative, the RoC distributions are reported yearly as a capital gain and the ACB is reset to zero. (You didn't think the gov't would let you off without paying capital gains after the cost hit zero, did you? *grin*)

http://www.taxtips.ca/personaltax/investing/taxtreatment/incometrusts.htm
http://www.standardlife.ca/en/individual/investments/mutual_funds/t_series/popup_capital.html


As well - RoC can be good or bad, depending on the situation. RoC where the asset is being written off but not depleted is good (example - real estate). RoC that is helping the trust maintain payments until the "current slump" is over can also be a bad thing (example - sell more units to pay distributions).

Here are few links:
http://howtoinvestonline.blogspot.com/2010/07/return-of-capital-separating-good-from.html
http://seekingalpha.com/article/261192-cef-return-of-capital-the-good-and-bad


Personally, I'd want to look at table of the past RoC as part of figuring out sustainability. A ten year table with six years of 10% RoC and three years of 60% RoC suggests something has changed. After all, for some trusts the cash flowing in comes from selling more units rather than business activities.


Cheers


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## doctrine (Sep 30, 2011)

Hmm. Upon further investigation, Boston Pizza has not identified if their dividends will have a portion of RoC. I see it was 4.5% in 2010, but they weren't taxed then - I would really like to know what it is in 2011.


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## Dmoney (Apr 28, 2011)

I wouldn't guarantee it, but as far as I can tell, all dividends going forward will simply be eligible dividends, no income and no ROC. I think....


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## Ethan (Aug 8, 2010)

Can someone refresh me on RoC? Is it not the portion of the dividend that comes from prior retained earnings? For example, if the dividend was $0.20 and EPS was $0.10, then ROC would also be $0.10? Therefore, any company with ROC is earning less than they are distributing.

Can a company elect to return capital if earnings are greater than the distributions? I don't think they can.


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## Eclectic12 (Oct 20, 2010)

Ethan said:


> Can someone refresh me on RoC? Is it not the portion of the dividend that comes from prior retained earnings? For example, if the dividend was $0.20 and EPS was $0.10, then ROC would also be $0.10? Therefore, any company with ROC is earning less than they are distributing.
> 
> Can a company elect to return capital if earnings are greater than the distributions? I don't think they can.


The link previously posted indicates that REITs RoC is usually Capital Cost Allowance, which I don't believe would be retained earnings.



> Return of Capital consists of distribution amounts in excess of net income. Sometimes that's good, sometimes it's bad. Part of the answer depends on taxation.
> 
> [ ... ]
> 
> 1) Depreciation in REITs: The primary source of ROC in REITs is Capital Cost Allowance, the amount that the Canada Revenue Agency permits the REIT to deduct for depreciation. According to the Deloitte REIT Guide the REIT generally includes in the distribution an amount labelled as ROC equal to the CCA.


Here are some definitions:
http://en.wikipedia.org/wiki/Return_of_capital
http://en.wikipedia.org/wiki/Income_trust


Some ETFs, MFs and closed funds also have RoC.

A couple of examples are iShares XIU and XIC that are estimated to have RoC in 2011.
http://ca.ishares.com/content/strea...tax_character_en.pdf&mimeType=application/pdf


If by "earnings" you mean net income - then I believe you are correct about RoC elections. 


Cheers


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## Argonaut (Dec 7, 2010)

I'm reading the company description on Google Finance and it almost gave me a headache with all of the times they say Pizza Pizza Pizza Pizza Pizza.

You don't have to dig too deep in the food industry. For the best of breed, just look for the golden arches. MCD is probably the bluest of the blue chips.


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## Montrealer (Sep 13, 2010)

Not only would I never invest in the restaurant business in any way, shape or form, but I would never let my money sit in a business fund that is so uncertain (especially this day in age), also, the Boston Pizza in Montreal next to a major highway and major companies and schools recently went bankrupt, I expect this to happen all around Montreal sooner than later.


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## Eder (Feb 16, 2011)

Montreal actually has a great selection of excellent restaurants (unlike 95% of the rest of Canada)...why would anyone there go to a pizza chain?

otoh Fort McMurray , Drumheller, Fort St John all have a Boston Pizza that is the best grub in town (my own experience)


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## Montrealer (Sep 13, 2010)

Eder said:


> Montreal actually has a great selection of excellent restaurants (unlike 95% of the rest of Canada)...why would anyone there go to a pizza chain?
> 
> otoh Fort McMurray , Drumheller, Fort St John all have a Boston Pizza that is the best grub in town (my own experience)


I agree with this, however, when your in the middle of one of the busiest highways linking Toronto and Montreal and right next to all the companies and industrial areas there is NO reason why you should fail, especially when your restaurant offers alcohol and NHL games in HD.


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## andrewf (Mar 1, 2010)

Eder said:


> Montreal actually has a great selection of excellent restaurants (unlike 95% of the rest of Canada)...why would anyone there go to a pizza chain?
> 
> otoh Fort McMurray , Drumheller, Fort St John all have a Boston Pizza that is the best grub in town (my own experience)


St Hubert seems to do well there, and it is just Swiss Chalet with a french name.

I can understand small towns having BP as the best food in town, but it'd be really sad for any city of, say, 50,000 plus for that to be the case.


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## webber22 (Mar 6, 2011)

It's funny that whenever we talk about Boston Pizza BPF.UN here, the stock shoots up...... up 4% in the last few days


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## Eclectic12 (Oct 20, 2010)

Montrealer said:


> I agree with this, however, when your in the middle of one of the busiest highways linking Toronto and Montreal and right next to all the companies and industrial areas there is NO reason why you should fail, especially when your restaurant offers alcohol and NHL games in HD.


Hmmm ... if it's a highway with lots of companies and industrial areas, is anyone around after business hours? Or are there some apartments/houses around?


IAC, one bankruptcy may not be the full story.

The ones I've passed through in Kitchener, Windsor, Oakville, Kingston and Ottawa have all been packed. Especially the ones in the movie theater plazas.

Which suggests BP is doing okay but without reading the reports of how many opened, how many have closed - there is no way to be sure.


Cheers


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## Montrealer (Sep 13, 2010)

Boston Pizza is doing fine, I know! And I am not worried about Jim Treliving, but what I am trying to say is that the restaurant business is VERY volatile and I would never invest in it in any way, shape or form, the only one I would invest in is Tim Hortons.


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## webber22 (Mar 6, 2011)

*Boston Pizza * BPF.UN had tremendously tasty earnings this quarter 

http://www.bpincomefund.com/en/news...nces_october_distribution_to_unitholders.aspx


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## londoncalling (Sep 17, 2011)

I have wanted to get into Boston Pizza for over a year. They just keep going and going. About 6 months ago I was gonna suck it up and bite the bullet. I am almost at the point where I buy in and watch it pull back, or let it slip away. I sure like the business model and the yield but it has had such a huge capital gain this past while. Mind you they do have a long term royalty payout structure (longer than my lifetime if I remember correctly). Oh the decisions. I hate to buy on optimism. It is on my watch list. However, I don't think it will fall during a pullback as much as others I have my eye on.

Edit: I realize the day of a div increase announcement is not the time to buy, but when is this opportunity going to present itself? Perhaps not for a long long time. This post is semi-rhetorical but I look forward to hearing from those that follow this stock a little more closely than I have.


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## liquidfinance (Jan 28, 2011)

I first purchased Boston Pizza around November and quickly added to the position and now have a reasonable gain since then. 

Even with the current gain I would still add to the position if the funds were available and I would jump at the chance if there was any pull back.

I like the business model.
I like their structure. 4% on the gross takings of the restaurants. Makes it pretty inflation proof. I think there are something like 99 years on the rights so plenty long enough investment horizon.

The yield is still healthy and they have risen the dividend numerous times over their history.

Personally as you obviously like the company I would bit the bullet and buy in with a small position. Then if it drops just gradually average into it. I'm guessing the main purpose of the Boston Pizza is for the income. If that's the case then the daily share price should be largely irrelevant.


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## riseofamillionaire (Feb 23, 2012)

liquidfinance said:


> I first purchased Boston Pizza around November and quickly added to the position and now have a reasonable gain since then.
> 
> Even with the current gain I would still add to the position if the funds were available and I would jump at the chance if there was any pull back.
> 
> ...


Noicee, I bought some SRV.UN and have a nice gain as well, continuing to hold. Looking to add on pullbacks as well like you mentioned. I want to overweight restaurants, I think it's a great place to be as the economy rebounds.


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## londoncalling (Sep 17, 2011)

liquidfinance said:


> I first purchased Boston Pizza around November and quickly added to the position and now have a reasonable gain since then.
> 
> Even with the current gain I would still add to the position if the funds were available and I would jump at the chance if there was any pull back.
> 
> ...


Thanks for the post. I would agree with everything you've said. The reasons you stated are the reasons I first became interested in this stock. I have been flipping back and forth between BP's and A&W. BP has a better yield and p/b but A&W has a better p/e. I hate to buy any stock at or near a 52 week high. I will be keeping a closer watch on it and if there is a pullback or some bad but not detrimental news I will bite. I am interested in the income and the dividend growth. I also want to diversify my portfolio as I am currently underweight in this sector and over weight energy,REITS, Financials and materials. Picking up one of these will help bring some balance to my allocation.

Cheers!


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## gibor365 (Apr 1, 2011)

Their payout ratio is pretty high, also they cut dividends in Jan 2011... 
What do you think anout Keg Royalties Income KEG.UN, on a first glance fundamental looks better than PZA.UN and .... their steaks are much tastier than pizza


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## Dmoney (Apr 28, 2011)

Gibor, I own both BPF and KEG. I agree with you that KEG's product is much better. Anytime I've been to the KEG, it is always PACKED, which is a good sign, BUT means that they can only grow same store sales by increasing prices (which they do frequently). 

Boston Pizza is rarely packed, and is often in locations in suburbs where a Keg restaurant wouldn't succeed. They can grow their top line by either increasing prices, or packing more people in. While demand for both will likely increase over time, BP has more room to grow same store sales. (Remember that the royalty structure means there is little reward for the bottom line of individual restaurants, and also little reward if they open new stores. Top line is what matters, so as long as they sell more, at higher prices, the investor wins).


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## gibor365 (Apr 1, 2011)

Dmoney, you wrote " also little reward if they open new stores"... 
Can you explain? I thought more restaurans -> better for shareholders. 
Couple of years ago Keg opened new restaurant close to my house (relatively new subdivision in suburbs) and it always packed.
Also, they didn't renew agreement with Airmails, so I cannot use airmiles reward ponts to buy Keg's gift card anymore. (Boston Pizza I can buy, but I don't like it). imo Keg has too many customers w/o gift cards that can be a good sign?
I don't hold PZA or KEG, even though was plannig to buy during last year, from food/drink industry I hold only LIQ and like it so far.


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## Eder (Feb 16, 2011)

Gibor...Boston Pizza makes good food (not just pizza) and can sell beer for $5/bottle. The Keg has done a great job changing from the Hungry Heifer genre to a nice spot to quaff a brew and eat some great appetizers (of course you can dump $50/personif you want to pig out).
LIQ is a great buy ....we all need a few drinks from time to time!

I think all three are nice spots to be till our interest rates rise a few points.

On the other hand I wouldn't eat a PizzaPizza pizza with your lips...haha.


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## Dmoney (Apr 28, 2011)

*Gibor*

The way it is structured as a royalty fund, BPF unitholders get 4% of the top line of each store included in the royalty pool. When a new restaurant is added, Boston Pizza International gets outstanding units corresponding to 92.5% of the royalty revenue added to the pool (the calculation is: New revenue/current yield/price per unit), so existing unitholders only get 7.5% of new revenue. All in all, new stores are good for existing unitholders, but not nearly as good as increased revenues from existing stores. 

For the Keg fund, it's the same calculation.

They are in no way shortchanging you (unless new stores cannibalize old), but I just think BPF can grow more as areas around their restaurants build up in population.


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## Financial Cents (Jul 22, 2010)

I probably won't buy it unless I am very diversified in a few years, and want to take a flyer. I prefer bigger, more stable companies with more predictability.

Not a fan of the food nor restuarant, but they seem popular to many.


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## doctrine (Sep 30, 2011)

I disagree, this company has incredibly stable earnings. 4% off the revenues means it doesn't matter how profitable the individual restaurants are. It's also good to see how they've innovated the restaurants and menus over the last 10 years, making them much more modern and I believe this has contributed towards the success of the brand. I was skeptical as well but I pretty much talked myself into it when they announced their 14th dividend/distribution increase over the last 10 years... and just announced their 15th.


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## gibor365 (Apr 1, 2011)

doctrine said:


> I disagree, this company has incredibly stable earnings. 4% off the revenues means it doesn't matter how profitable the individual restaurants are. It's also good to see how they've innovated the restaurants and menus over the last 10 years, making them much more modern and I believe this has contributed towards the success of the brand. I was skeptical as well but I pretty much talked myself into it when they announced their 14th dividend/distribution increase over the last 10 years... and just announced their 15th.



Who? PZA? They reduce their dividends in Jan 2011 from 0.0775 to 0.0584 (monthly)


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## doctrine (Sep 30, 2011)

No, BPF.UN. A little off topic, I suppose.


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## Dmoney (Apr 28, 2011)

Gibor, they all did, because they could no longer flow through their payments tax free due to SIFT regulations. This was announced back in 2006, so it was built into the unit prices for all the income trusts. Look at October 31 '06, all the trusts fell off a cliff. 

The downside is they are now taxed on income before they pay it out.
The upside is they generally pay eligible dividends now, vs. income under the prior structure.

I think doctrine was talking about BPF though, who also cut their distribution in January to reflect changes in their entity level taxation.


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## webber22 (Mar 6, 2011)

The BPF.UN stock is on sale today -2% at 16.73, yield of 7%. I was pleased to see the T3 come in this week showing almost 99% pure dividends.


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## gibor365 (Apr 1, 2011)

webber22 said:


> The BPF.UN stock is on sale today -2% at 16.73, yield of 7%. I was pleased to see the T3 come in this week showing almost 99% pure dividends.


Wondering what happended?


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## londoncalling (Sep 17, 2011)

I am not sure what caused this. I was too busy trying to get BCE at a price lower than the market went to this morning. By the time I saw this opportunity it was long gone as it stayed above 16.70 most of the day. I tend to miss some chances by some inconveniences such as work...


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## gibor365 (Apr 1, 2011)

londoncalling said:


> I am not sure what caused this. I was too busy trying to get BCE at a price lower than the market went to this morning. By the time I saw this opportunity it was long gone as it stayed above 16.70 most of the day. I tend to miss some chances by some inconveniences such as work...


Not only you  I just had a time to chek market in the morning for 5 min and than after 3.30 pm 
2 days ago sold some mutual fund and was thinking to add EGL.UN on some dip, but it didn't dip  Will try to add before next ex-div at the end of the March


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## webber22 (Mar 6, 2011)

Last Friday was options expiry. There was a lot of selling of positions early in the day, followed with buybacks later on. BPF.UN was sold off by those trying to raise capital I guess


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## londoncalling (Sep 17, 2011)

That makes sense. It was quadruple witching day... I will be prepared for the next triple or quadruple and hopefully be able to pick up some good positions at clearance prices...


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## gibor365 (Apr 1, 2011)

londoncalling said:


> That makes sense. It was quadruple witching day... I will be prepared for the next triple or quadruple and hopefully be able to pick up some good positions at clearance prices...


Please let us know when this day is coming


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## londoncalling (Sep 17, 2011)

http://www.investopedia.com/terms/q/quadruplewitching.asp#axzz1pPy3ZeKs

http://www.investopedia.com/terms/t/triplewitchinghour.asp#axzz1pPy3ZeKs

I hope you didn't mean the next stock price triple or quadruple because I have no clue and anyone who tells you they do is full of beans... Cheers!


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## rookie (Mar 19, 2010)

going back to pizzas, i couldnt help but notice how so many of you have expressed dissatisfaction over the taste of pizza pizza's pizzas (wow that was long) and i have to admit that i too share the same. its surprising how there is so less competition to pizza stores in canada. a lousy player like pizza pizza seems to be the largest. wonder why??? i actually hate dominos as well.

for people living in toronto, has anyone tried pizzaolo? their toppings are actually marinated and have flavour. i loved the taste.


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## liquidfinance (Jan 28, 2011)

I know I'm dragging an old thread up here but seems to me like another good set of results have just been announced. What are the up to date thoughts on this one as an income play. I'm a little worried by buying in at the current valuation but seems safe enough. 

Thoughts please.


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## Mall Guy (Sep 14, 2011)

Well, they continue to expand into new markets, and all the early ownership, franchisee, ownership issues seem to be resolves, even succession planning seems to be working . . . product is no better, no worse that any chain that when through the "2 for 1" transition . . . and if you're looking for fiber "eat the box"


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## webber22 (Mar 6, 2011)

They finally converted to a corp and are now paying all eligible dividends, with a dividend increase

TORONTO, ONTARIO--(Marketwire - Jan. 16, 2013) -
Pizza Pizza Royalty Corp. (TSXZA), formerly Pizza Pizza Royalty Income Fund, today announced a 4.2% increase in its monthly dividend which will be effective beginning with the January 2013 dividend.
On an annual basis the dividend will increase from $0.72 to $0.75 per share.
For the period January 1 to January 31, the dividend per share will increase to $0.0625 from $0.06 and will be payable February 15, 2013 to shareholders of record at the close of business on January 31, 2013.
For tax purposes, the Company's 2013 distributions will be treated as taxable eligible dividends. In previous years, distributions were treated in part as a taxable dividend and in part as a return of capital.


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## doctrine (Sep 30, 2011)

Yield increases from 7% to 7.3%, as of today. Not bad, Boston Pizza's yield is 6% now.


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## blin10 (Jun 27, 2011)

how are they both going up? pza and bpf payout ratios are insane, and they're increasing dividend ? am I seeing something wrong?


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## maxandrelax (Jul 11, 2012)

Pizzaiolo is *fantastic* pizza. They ate Amatos' lunch in the gourmet quick pizza chains downtown. Expansion and quality. They have 28 stores now! I would like to invest in them. I have no complaints with Pizza Pizza. Their crust is quality and toasted. 

Pizzaiolo franchise:
Franchise Fee: $25,000
Unencumbered Capital:
Depending on Square Footage and Location
$80,000
Royalties:	5%
Advertising Fund:	$500/month



rookie said:


> going back to pizzas, i couldnt help but notice how so many of you have expressed dissatisfaction over the taste of pizza pizza's pizzas (wow that was long) and i have to admit that i too share the same. its surprising how there is so less competition to pizza stores in canada. a lousy player like pizza pizza seems to be the largest. wonder why??? i actually hate dominos as well.
> 
> for people living in toronto, has anyone tried pizzaolo? their toppings are actually marinated and have flavour. i loved the taste.


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## webber22 (Mar 6, 2011)

blin10 said:


> how are they both going up? pza and bpf payout ratios are insane, and they're increasing dividend ? am I seeing something wrong?


They are income funds so they distribute as close to 100% as they can


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## blin10 (Jun 27, 2011)

but it is far from close, they pay $0.75 annually with EPS at -0.32.... 



webber22 said:


> They are income funds so they distribute as close to 100% as they can


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## gibor365 (Apr 1, 2011)

blin10 said:


> but it is far from close, they pay $0.75 annually with EPS at -0.32....


This is why when I was looking to buy some restaurant stock. I went with SRV.UN, payout less than 100%, yield 8.2%, small but still nice div at Xmas, P/E < 12 ... much better fundamentals than pza, keg or bpf ... and NHL is starting that also should be beneficial to SRV


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## webber22 (Mar 6, 2011)

Not sure where that -0.32 EPS is coming from for PZA. Their last quarter results are fine as are the other recent quarters

http://www.pizzapizza.ca/2012/11/14...nd-announces-third-quarter-financial-results/


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## 1sImage (Jan 2, 2013)

Hummm interesting... Very interesting.. I may have to order some.


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## blin10 (Jun 27, 2011)

-0.32 eps shows up in royal bank direct investing account...



webber22 said:


> Not sure where that -0.32 EPS is coming from for PZA. Their last quarter results are fine as are the other recent quarters
> 
> http://www.pizzapizza.ca/2012/11/14...nd-announces-third-quarter-financial-results/


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## doctrine (Sep 30, 2011)

It does have a loss over the last 3 quarters. That's not unusual in these restaurant trusts - sometimes they revalue their assets or interest in the parent company and it throws the net earnings for a loop. In the long run, the distributions speak for themselves - PZA has raised them twice in the last 12 months now. I don't own any although I own BPF.UN - they've distributed almost $13 in the last 10 years (stock is worth $19 but was going for as little as $14 last year).


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## liquidfinance (Jan 28, 2011)

I do love these income funds. A nice way to start the year with an increase in divi.


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## JosephK (Nov 7, 2012)

The negative EPS would seem to be coming from this:



> Earnings/Loss attributable to unitholders for the Quarter was a loss of $2.3 million and a loss of $7.9 million for the nine month period. The loss is attributable to the non-cash, fair value unfavorable adjustment on the exchangeable units in 2012 of $5.9 million in the third quarter ($17.8 million for the nine months) plus an increase in expenses of $182,000 relating to the planned corporate conversion; these are offset by the increase in the current year’s royalty income. For the prior year quarter and nine month period, profit was $9 million and $10.9 million, respectively, which included a non-cash fair value favourable adjustment on the exchangeable units of $6.3 million in the third quarter ($1.7 million in the nine month period). After conversion to a corporation in December 2012, this non-cash, mark-to-market adjustment will not be required by IFRS.


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## liquidfinance (Jan 28, 2011)

Been a little out of touch with my holding the last couple of weeks due to a new addition to the family but very happy to read this.

http://www.marketwire.com/press-rel...h-and-4-dividend-increase-tsx-pza-1786107.htm

Another divi increase.


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## webber22 (Mar 6, 2011)

The stock has been rising recently, rumours about a dividend increase in February, coupled with the Dairy commission dropping cheese prices


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## Getafix (Dec 29, 2014)

So what are your thoughts on PZA vs BPF.UN/A&W.UN/SRV.UN in terms of future growth potential? In the last 5 years PZA has had the most growth, however in the last year A&W has outperformed all three. As for SRV.UN the 8.48 yield seems too good to be true? Which one seems like the safest bet for the future?


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## PuckiTwo (Oct 26, 2011)

Getafix said:


> So what are your thoughts on PZA vs BPF.UN/A&W.UN/SRV.UN


You may want to include (The KEG) KEG-Un.To in yr list to check out. Both, Keg and A&W seem to be stable, boring companies with limited slow growth, though A&W gained quite a bit in the last months. Own both. Both yield just over 5%. I am somewhat suspicious if companies yield 8, 9 or more %.


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## Killer Z (Oct 25, 2013)

PuckiTwo said:


> You may want to include (The KEG) KEG-Un.To in yr list to check out. Both, Keg and A&W seem to be stable, boring companies with limited slow growth, though A&W gained quite a bit in the last months. Own both. Both yield just over 5%. I am somewhat suspicious if companies yield 8, 9 or more %.


The stable/boring attributes of BPF.UN is one of the reasons why I own it. Definitely not expecting much in growth, and there are certainly no guarantees in the stock market, however I feel I can count on a total return of 4% to 7% each year.


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## Pano (Oct 16, 2012)

So, what does this mean? How does it affect shareholders?

http://www.marketwired.com/press-re...illion-secondary-offering-tsx-pza-1997150.htm


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## Just a Guy (Mar 27, 2012)

Looks like they are selling more shares to raise money. Current shareholder's value would be diluted technically, but the offer price is higher than the current trading price, so if my psychologically boost the price...at least until people realize there are more shares out there, so the price should actually be going down.

But no one ever said the market was logical.


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## yyz (Aug 11, 2013)

^ Am I missing something here?The shares are being offered at $15 and were trading above that before this secondary offer.


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## doctrine (Sep 30, 2011)

This is a secondary offering. PZA.UN is not receiving any proceeds, and there is no overall dilution. The operating company of Pizza Pizza, Pizza Pizza Limited, is reducing its 50% effective holding of the royalty fund to less than 20%. This doesn't directly affect shareholders financially, with non-financial impacts being more liquidity and less of a controlling entity in the company. Good timing on their part, given the fund is at an all time high.


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## Just a Guy (Mar 27, 2012)

Just goes to show you have to be careful to read the news releases more slowly...missing a word like "secondary" can really change the story.


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## new dog (Jun 21, 2016)

I am watching this one right now and may put some money into it.


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