Record C$257.5 Million in Boston Pizza Royalties Sales Supports 1.6% Distribution Increase
Key Facts
Boston Pizza Royalties Income Fund said franchise sales reached a quarterly record of C$257.5 million in the third quarter of 2026, up 3.4% from the same period a year earlier. In a statement on Canada Newswire, the fund said sales also set a record for the nine months ended September 30, at C$752.4 million, up 2.8% year over year. The fund linked this performance and growth in its cash balance to its announcement of an increase in the monthly cash distribution to unitholders. The news thus combines sales growth with an adjustment to investors’ periodic return. Trustees announced on November 6 that the distribution for October would be C$0.126 per unit, up 1.6% from the previous rate.
The increase in franchise sales came alongside 3.9% growth in same-store restaurant sales in the third quarter. That rate was slightly below the 4.1% growth recorded in the third quarter of 2025, indicating that annual sales continued to rise but at a slower pace than in the corresponding period. Over the nine months, same-store restaurant sales rose 3.1%, compared with 5.0% in the same period last year. The fund said momentum in takeout and delivery remained among the main drivers of performance. It also cited promotional initiatives and increased restaurant traffic associated with the FIFA World Cup as factors supporting sales.
The fund said cash flow from operating activities was C$10.7 million in the third quarter, compared with C$10.6 million in the same quarter of 2025. For the nine months, operating cash flow reached C$30.7 million, up from C$29.8 million a year earlier. These figures put operating cash flow on an upward path both quarterly and year to date, alongside the increase in franchise sales. The fund said growth in its cash balance, together with record sales, supported the decision to raise distributions. The distribution announcement was therefore based on the cash performance reported by the fund, as well as sales results.
The distribution increase accompanied a sharp decline in net comprehensive income, which fell to C$0.7 million in the third quarter from C$10.4 million in the same period of 2025. The fund attributed most of the decline to a C$13.0 million increase in fair-value losses. This decline in accounting income followed a different trajectory from the growth in sales and operating cash flow recorded by the fund during the period. Net income alone therefore does not reflect the change in sales, as the fund attributed most of its decline to fair-value losses. The available facts did not provide further detail on the components of those losses.
The new monthly distribution, on an annualized basis, amounts to C$1.512 per unit, compared with C$1.488 at the previous rate, according to the fund. The payment for the October distribution will be made on November 30 to investors of record on November 21. The trustees’ announcement said the increase amounts to C$0.002 per unit per month, from C$0.124 to C$0.126. These are the dates and rates set for the announced distribution, which follows the fund’s record franchise sales and higher operating cash flow over the nine months. The fund scheduled a call to discuss its third-quarter results for November 9, 2026, at 11:30 a.m. Eastern Time.