# PZA.TO



## guillaumevfournier (Dec 1, 2017)

What are thoughts on PZA.TO? Or similar restaurants royalty income funds? AW.UN, etc.

Prices are down a bit lately. Good time to get in to take advantages of 4-5% yields? 

Pros/Cons? Are they relatively stable safe investments?

Thanks


----------



## kac147 (Jan 12, 2018)

From the financial point of views:

Pros:
- Financially stable
- High profit margins
- Stable dividends (pretty high payout from the earning though)
- Low debts
- Stable positive cash flows for the last couple years
- Reasonable price from a dividend standpoint

Cons:
- Low ROE
- Slow growing
- Overvalued from a growth standpoint
- A bit overvalued from P/E and P/B

From a qualitative point of view, the employee comments are on average. Quality of the food depends on the franchise stores. Employees seem to be stressful and under paid in general. These comments are normal for all restaurant. 

In my opinions, PZA is a stable company giving out dividend every year. However, I do not think you will see a huge jump on the market price or high return in a short period of time. If I go with dividend standpoint, I usually set the dividend yield to 6%. Pizza restaurants are also competitive across Canada. I believe if they improve their customer services and quality of the food, they will have higher growth on revenue.


----------



## Just a Guy (Mar 27, 2012)

PZA is a little different as it doesn’t have a lot of overhead. They take a percentage off the top of all sales for the rights to use the name and logo. That money is then paid out to shareholders. 

Basically they don’t manage the stores, staff or anything. The payout ratio is high, but aside from distributing he money they collect, this fund doesn’t really do anyhing. 

The store performance is important, since they take the money off the top of sales, but they have a dominant name in pizza pizza and pizza 73.


----------



## SixesAndSevens (Dec 4, 2009)

I have PZA as well.
I have held it for a couple of year now...bought around $13 & change, I think.

This had a very good rise to > $18.50 a few months ago.
i think some of it or maybe all of it was driven by the cannabis legalisation.
it has corrected a lot since then.

I am wondering whether to hold or bail.
I am still up slightly as per my ACB.
the yield is attractive but I don;t want to lose capital to get yield.

sell, hold or buy more at this level...what do others think?


----------



## jargey3000 (Jan 25, 2011)

....you're gonna see pizza sales spike come july 1.......


----------



## SixesAndSevens (Dec 4, 2009)

jargey3000 said:


> ....you're gonna see pizza sales spike come july 1.......


then why is the stock down?
I thought the cannabis fueled sales are already baked in, pardon the pun.
there is word that weed prices in ontario will be in the $8/gm range, down from the current ~ $10/gm.
some are also saying that the weed sales expectations are wildly optimistic and actual reality will be a lot less.
I thought that is why both PZA and BP are down in last few weeks.
no?


----------



## Eder (Feb 16, 2011)

They're down because the herd is stampeding the exits to buy bonds yielding an addition .25%. Makes sense till it doesn't lol.


----------

