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Boston Pizza Fund
(TSX:BPF.UN)
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Rating:64Neutral
Price Target:
C$23.00
▲(8.75% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by solid financial performance (growth and improving cash flow) and supportive valuation (moderate P/E and high yield). These positives are tempered by weak technicals (price below key averages with negative momentum) and earnings-call risks around payout sustainability (TTM payout ratio >100%), earnings volatility, and modest system contraction (closures with no Q2 openings).
Positive Factors
Recurring royalty model
The asset-light royalty structure provides recurring exposure to restaurant sales without directly funding restaurant operations, supporting scalable cash generation and potentially reducing operating complexity.
Negative Factors
Distribution coverage pressure
Distributions exceeding trailing distributable cash indicate limited coverage and reduce the margin of safety for unitholders. Persistently weak coverage could require cash retention, financing or distribution reductions.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring royalty model
The asset-light royalty structure provides recurring exposure to restaurant sales without directly funding restaurant operations, supporting scalable cash generation and potentially reducing operating complexity.
Read all positive factors
Boston Pizza Fund (BPF.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$416.42M
Dividend Yield8.04%
Average Volume (3M)49.03K
Price to Earnings (P/E)10.5
Beta (1Y)0.62
Revenue Growth3.49%
EPS Growth8.13%
CountryCA
Employees189
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)1.86
Shares Outstanding21,278,563
10 Day Avg. Volume60,287
30 Day Avg. Volume49,034
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)1.66
Price to Sales (P/S)9.27
P/FCF Ratio12.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.79
Revenue Forecast (FY)C$52.80M
Boston Pizza Fund Business Overview & Revenue Model
Company Description
Operating as a specialized open-ended trust, the Boston Pizza Royalties Income Fund primarily owns the trademarks used by Boston Pizza International Inc. This ownership is managed indirectly through Boston Pizza Royalties Limited Partnership. Bost...
How the Company Makes Money
The Fund makes money primarily by collecting royalties that are calculated as a percentage of system sales (gross revenue) from a defined pool of Boston Pizza restaurants in Canada (the “Royalty Pool”). Each year, the number of restaurants include...
Boston Pizza Fund Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented a mix of operational strength and financial caution. Operationally, Boston Pizza reported record franchise sales, continued same-restaurant sales growth (seven consecutive quarters), improved cash flows, modest increases in distributable cash and per-unit distributable cash, and strong promotional and renovation momentum. However, reported IFRS net income declined materially quarter-over-quarter due to significant fair value losses, interest costs rose modestly, no new restaurant openings occurred in the quarter while there were four closures year-to-date, and the trailing 12-month payout ratio exceeded 100% (103.1%), raising sustainability concerns. Management has maintained the monthly distribution and emphasized trustee oversight and caution regarding macro and geopolitical risks. Overall, positives on operating cash generation and sales are tempered by earnings volatility and payout sustainability risk.Positive Updates
Record Franchise Sales
Royalty Pool franchise sales reached $256.5 million for the quarter and $494.9 million year-to-date, increases of 1.9% and 2.5% respectively versus the same periods in the prior year (quarterly prior: $251.8M; YTD prior: $483.0M).
Negative Updates
Sharp Decline in Net and Comprehensive Income (Quarter)
Fund net and comprehensive income fell to $5.9M for the quarter versus $14.3M in Q2 2025, a decrease of $8.4M (≈-58.7%). The decline was primarily driven by an $11.1M increase in fair value loss and a $0.3M increase in net interest expense, only partially offset by lower income tax expense and marginally higher royalty and distribution income.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Franchise Sales
Royalty Pool franchise sales reached $256.5 million for the quarter and $494.9 million year-to-date, increases of 1.9% and 2.5% respectively versus the same periods in the prior year (quarterly prior: $251.8M; YTD prior: $483.0M).
Read all positive updates
Company Guidance
The call's forward guidance focused on promotional and operational initiatives to sustain momentum—Live and Local music events, a fall football-season feature menu and the Q3 BP Kids Cards promotion (a $5 donation for a card with 5 free kids’ meals)—while warning that the Middle East conflict and global supply‑chain disruption could raise input costs and weigh on consumer spending. Management pointed to supporting metrics: same‑restaurant sales +2.3% in Q2 (+2.7% YTD), record franchise sales of about $256.5M in Q2 and $494.9M YTD from the 372‑restaurant royalty pool, royalty income $10.3M Q2 ($19.8M YTD) and distribution income $3.4M Q2 ($6.5M YTD). Financial liquidity metrics cited were distributable cash $8.2M Q2 ($15.8M YTD), distributable cash per unit $0.386 Q2 ($0.741 YTD), operating cash flow $10.4M Q2 ($20.0M YTD) and payout ratios of 96.3% Q2, 98.8% YTD and 103.1% trailing‑12‑months; trustees approved a $0.124/unit cash distribution for July and said monthly distributions are intended to be sustainable. Development guidance: no new openings in Q2, 2 permanent closures in Q2 (4 YTD), 10 renovations in Q2 (21 YTD) with an annual target of ~40 renovations (potentially exceeding 40) and three restaurants under construction (Revelstoke BC, Dryden ON, The Pas MB).Boston Pizza Fund Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 52.55M | 51.89M | 49.51M | 49.19M | 45.47M | 35.15M |
| Gross Profit | 52.35M | 51.62M | 49.51M | 49.19M | 45.47M | 35.15M |
| EBITDA | 62.14M | 65.14M | 51.97M | 47.30M | 46.96M | 554.00K |
| Net Income | 39.58M | 42.17M | 31.87M | 29.57M | 30.58M | 37.41M |
Balance Sheet | ||||||
| Total Assets | 454.17M | 449.45M | 422.89M | 413.06M | 413.70M | 411.31M |
| Cash, Cash Equivalents and Short-Term Investments | 3.98M | 3.89M | 4.57M | 4.59M | 5.21M | 5.16M |
| Total Debt | 143.41M | 141.54M | 97.06M | 123.76M | 86.44M | 126.02M |
| Total Liabilities | 159.07M | 159.41M | 142.66M | 134.17M | 133.12M | 135.51M |
| Stockholders Equity | 295.10M | 290.05M | 280.22M | 278.89M | 280.58M | 275.80M |
Cash Flow | ||||||
| Free Cash Flow | 40.49M | 39.70M | 38.12M | 37.93M | 34.35M | 29.18M |
| Operating Cash Flow | 40.49M | 39.70M | 38.12M | 37.93M | 34.35M | 30.48M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1.29M |
| Financing Cash Flow | -41.83M | -40.38M | -38.14M | -38.55M | -34.30M | -33.01M |
Boston Pizza Fund Technical Analysis
Negative
21.15
Price Trends
21.13
Negative
22.24
Negative
22.67
Negative
Market Momentum
-0.48
Positive
30.82
Neutral
15.82
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BPF.UN, the sentiment is Negative. The current price of 21.15 is above the 20-day moving average (MA) of 20.23, above the 50-day MA of 21.13, and below the 200-day MA of 22.67, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 30.82 is Neutral, neither overbought nor oversold. The STOCH value of 15.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BPF.UN.
Boston Pizza Fund Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$117.76M | 14.49 | 9.50% | 9.10% | 6.11% | -22.46% | |
73 Outperform | C$47.53B | 17.43 | 34.86% | 3.45% | 5.56% | 38.79% | |
67 Neutral | C$361.71M | 11.68 | 10.09% | 8.26% | -0.69% | -2.98% | |
66 Neutral | C$867.69M | 15.81 | 24.98% | 5.33% | -1.57% | 218.18% | |
65 Neutral | C$733.89M | 6.51 | 13.22% | 4.50% | -1.60% | 194.60% | |
64 Neutral | C$416.42M | 10.52 | 13.49% | 8.04% | 3.49% | 8.13% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
TSE:BPF.UN
Boston Pizza Fund
19.57
0.06
0.31%
TSE:PZA
Pizza Pizza Royalty
10.63
-3.98
-27.27%
TSE:QSP.UN
Restaurant BrndLP
103.46
14.38
16.15%
TSE:SRV.UN
SIR Royalty Income
14.06
0.44
3.22%
TSE:MTY
MTY Food Group
32.02
-5.59
-14.87%
TSE:AW
A & W Food Services of Canada Inc.
36.05
0.26
0.72%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.