Pizza Pizza Fund Hikes Distribution

The Star:

Crediting sales growth, Pizza Pizza Royalty Income Fund (TSX: PZA.UN) is increasing monthly cash distributions to unitholders by 2.8 per cent for January.

The payout will rise to 7.3 cents a unit from 7.1 cents, to be paid Feb. 5, the Toronto-based firm said Monday.

“Business activities underlying the fund continued to be solid in the fourth quarter ended Dec. 31 as Pizza Pizza Ltd. experienced a five per cent same-store sales growth over the same period last year,” the fund said in a release.

“System sales of the Pizza Pizza restaurants in the royalty pool for the fourth quarter were $93.9 million and the payout ratio was 91 per cent.”

The fund is a limited-purpose trust established to indirectly acquire the trademarks and trade names used by Pizza Pizza Ltd. in its restaurants across Canada.