Record Franchise Sales1 of $248.9 million for the Period and $731.9 million YTD, representing increases of 4.3% and 4.9%, respectively, versus the same periods one year ago.
Same Restaurant Sales2 of 4.1% for the Period and 5.0% YTD.
Cash flows generated from operating activities of $10.6 million for the Period and $29.8 million YTD, representing increases of 6.2% and 3.9%, respectively, versus the same periods one year ago.
Distributable Cash3 increased 4.9% for the Period and 3.8% YTD, and Distributable Cash per Unit4 increased 5.0% for the Period and 3.8% YTD.
Payout Ratio5 of 88.8% for the Period, 93.5% YTD and 99.4% on a trailing 12-month basis. Cash balance at the end of the Period was $6.4 million.
On November 7, 2025, the trustees of the Fund declared a distribution for the period of October 1, 2025 to October 31, 2025 of $0.120 per Unit, which is payable on November 28, 2025 to unitholders of the Fund ("Unitholders") of record on November 21, 2025.
VANCOUVER, BC, Nov. 10, 2025 /CNW/ - Boston Pizza Royalties Income Fund (the "Fund") and Boston Pizza International Inc. ("BPI") reported financial results today for the third quarter period from July 1, 2025 to September 30, 2025 (the "Period") and January 1, 2025 to September 30, 2025 ("YTD"). A copy of this press release, the unaudited condensed consolidated interim financial statements and related management's discussion and analysis ("MD&A") of the Fund and BPI are available at www.sedarplus.ca and www.bpincomefund.com. The Fund will host a conference call to discuss the results on November 10, 2025 at 8:30 am Pacific Time (11:30 am Eastern Time). The call can be accessed by dialling 1-833-821-3078 or +1-647-846-2537. A replay will be available until December 10, 2025 by dialling 1-855-669-9658 or +1-412-317-0088 and entering the access code: 8379282 followed by the # sign. The replay will also be available at www.bpincomefund.com. Capitalized terms used in this press release that are not otherwise defined have the meanings ascribed to them in the Fund's MD&A for the Period and YTD.
"Boston Pizza delivered its third consecutive quarter of record Franchise Sales, continuing the strong performance seen throughout the year," said Jordan Holm, President of BPI. "While economic and political uncertainties persist, BPI and our franchisees have successfully navigated these challenges through strategic promotions, operational agility, and a continued focus on guest experience. We remain vigilant in monitoring the broader economic environment and are confident in our ability to adapt quickly as conditions evolve. Our long-term strategy is centered on sustaining growth, strengthening guest loyalty, and ensuring Boston Pizza remains a trusted destination for Canadians across all dining occasions."
PERIOD RESULTS
SRS, a key driver of distribution growth for Unitholders, was positive 4.1% for the Period compared to negative 0.6% reported in the third quarter of 2024. SRS was positive 5.0% YTD compared to positive 0.1% reported year-to-date in 2024. SRS for the Period and YTD was principally due to continued momentum in take-out and delivery, effective promotional initiatives, and favourable comparisons to a softer performance in the same period in the prior year.
Franchise Sales of Boston Pizza restaurants in the Royalty Pool were $248.9 million for the Period compared to $238.6 million for the third quarter of 2024. The $10.3 million increase in Franchise Sales for the Period was primarily due to positive SRS. Franchise Sales of Boston Pizza restaurants in the Royalty Pool were $731.9 million YTD compared to $697.4 million year-to-date in 2024. The $34.5 million increase in Franchise Sales YTD was primarily due to positive SRS.
The Fund's net and comprehensive income was $10.4 million for the Period compared to $9.4 million for the third quarter of 2024. The $1.0 million increase in the Fund's net and comprehensive income for the Period compared to the third quarter of 2024 was primarily due to a $0.6 million increase in Royalty Income6 and Distribution Income7, a $0.3 million increase in fair value gain and a $0.3 million decrease in income tax expense, partially offset by a $0.2 million increase in net interest expense. The Fund's net and comprehensive income was $31.1 million YTD compared to $25.3 million year-to-date in 2024. The $5.8 million increase in the Fund's net and comprehensive income YTD compared to the same period in 2024 was primarily due to a $5.1 million increase in fair value gain, a $1.8 million increase in Royalty Income and Distribution Income and a $0.1 million decrease in administrative expenses, partially offset by a $1.2 million increase in income tax expense.
Cash generated from operating activities for the Period was $10.6 million compared to $10.0 million in the third quarter of 2024. The increase of $0.6 million was primarily due to an increase in Royalty Income and Distribution Income of $0.6 million and an increase in changes in working capital of $0.1 million, partially offset by an increase in income taxes paid of $0.1 million. Cash generated from operating activities YTD was $29.8 million compared to $28.7 million in the same period in 2024. The increase of $1.1 million was primarily due to an increase in Royalty Income and Distribution Income of $1.8 million and a decrease in administrative expenses of $0.1 million, partially offset by an increase in income taxes paid of $0.5 million and a decrease in changes in working capital of $0.3 million.
The Fund generated Distributable Cash of $8.5 million for the Period compared to $8.1 million for the third quarter of 2024. The increase in Distributable Cash of $0.4 million or 4.9% was primarily due to an increase in cash flows generated from operating activities of $0.6 million, partially offset by higher BPI Class B Unit entitlement8 of $0.1 million and higher interest paid on debt of $0.1 million. The Fund generated Distributable Cash of $23.8 million YTD compared to $22.9 million for the same period in 2024. The increase in Distributable Cash of $0.9 million or 3.8% was primarily due to an increase in cash flows generated from operating activities of $1.1 million, partially offset by higher Class B Unit entitlement of $0.1 million and higher interest paid on debt of $0.1 million.
The Fund generated Distributable Cash per Unit of $0.400 for the Period and $1.118 YTD compared to $0.381 per Unit and $1.077 per Unit, respectively, for the same periods in 2024. The increase in Distributable Cash per Unit of $0.019 or 5.0% for the Period and $0.041 or 3.8% YTD was primarily attributable to the increase in Distributable Cash outlined above.
The Fund's Payout Ratio for the Period was 88.8% compared to 88.9% in the third quarter of 2024. The decrease in the Fund's Payout Ratio for the Period was due to Distributable Cash increasing by $0.4 million or 4.9%, partially offset by distributions paid increasing by $0.3 million or 4.7%. YTD, the Fund's Payout Ratio was 93.5% compared to 93.8% year-to-date in 2024. The decrease in the Fund's Payout Ratio YTD was due to Distributable Cash increasing by $0.9 million or 3.8%, partially offset by distributions paid increasing by $0.7 million or 3.4%. Payout Ratio is calculated by dividing the amount of distributions paid during the applicable period by the Distributable Cash for that period. The Fund's Payout Ratio fluctuates quarter-to-quarter depending upon the amount of distributions paid during a quarter and the amount of Distributable Cash generated during that quarter. On a trailing 12-month basis, the Fund's Payout Ratio was 99.4% as at September 30, 2025.
DISTRIBUTIONS
During the Period, the Fund declared distributions on the Units in the aggregate amount of $7.6 million or $0.355 per Unit. During the third quarter of 2024, the Fund declared distributions on the Units in the aggregate amount of $7.2 million or $0.339 per Unit. During the Period, the Fund paid distributions on the Units in the aggregate amount of $7.6 million or $0.355 per Unit. During the third quarter of 2024, the Fund paid distributions on the Units in the aggregate amount of $7.2 million or $0.339 per Unit. The amount of distributions declared and paid during the Period increased by $0.3 million or $0.016 per Unit due to the monthly distribution rate increasing from $0.113 per Unit to $0.115 per Unit commencing with the November 2024 distribution (the "2024 Distribution Increase") and further increasing from $0.115 per Unit to $0.120 per Unit commencing with the July 2025 distribution (the "2025 Distribution Increase"). YTD, the Fund declared distributions on the Units in the aggregate amount of $19.8 million or $0.930 per Unit. During the same period in 2024, the Fund declared distributions on the Units in the aggregate amount of $19.2 million or $0.904 per Unit. YTD, the Fund paid distributions on the Units in the aggregate amount of $22.2 million or $1.045 per Unit. During the same period in 2024, the Fund paid distributions on the Units in the aggregate amount of $21.5 million or $1.011 per Unit. The amount of distributions declared YTD increased by $0.6 million or $0.026 per Unit due to the 2024 Distribution Increase and the 2025 Distribution Increase. The amount of distributions paid YTD increased by $0.7 million or $0.034 per Unit due to an increase to the monthly distribution rate from $0.107 per Unit to $0.113 per Unit commencing with the January 2024 distribution, the 2024 Distribution Increase and the 2025 Distribution Increase.
On November 7, 2025, the trustees of the Fund declared a distribution for the period of October 1, 2025 to October 31, 2025 of $0.120 per Unit, which will be payable on November 28, 2025 to Unitholders of record on November 21, 2025. Including the October 2025 distribution, which will be paid on November 28, 2025, the Fund will have paid out total distributions of $478.2 million or $28.62 per Unit, which includes 274 monthly distributions and three special distributions.
FINANCIAL SUMMARY
The tables below set out selected information from the Fund's unaudited condensed consolidated interim financial statements together with other data and should be read in conjunction with the unaudited condensed consolidated interim financial statements and MD&A of the Fund for the three-month and nine-month periods ended September 30, 2025 and September 30, 2024, and the Fund's audited annual consolidated financial statements for the year-ended December 31, 2024.
For the periods ended September 30
Q3 2025
Q3 2024
YTD 2025
YTD 2024
(in thousands of dollars, except restaurants, SRS, Payout Ratio and per Unit items)
Number of restaurants in Royalty Pool
372
372
372
372
Franchise Sales reported by restaurants in the Royalty Pool
248,927
238,613
731,881
697,437
Royalty Income
9,957
9,544
29,275
27,897
Distribution Income
3,275
3,135
9,617
9,165
Total revenue
13,232
12,679
38,892
37,062
Administrative expenses
(352)
(379)
(1,173)
(1,312)
Interest expense on debt and financing fees
(892)
(887)
(2,559)
(2,647)
Interest expense on Class B Unit liability
(1,123)
(1,033)
(2,899)
(2,825)
Interest income
42
71
126
206
Profit before fair value gain and income taxes
10,907
10,451
32,387
30,484
Fair value gain on investment in BP Canada LP
6,602
8,511
18,986
12,112
Fair value loss on Class B Unit liability
(2,941)
(3,792)
(8,459)
(5,396)
Fair value loss on Swaps
(546)
(1,923)
(1,155)
(2,407)
Current and deferred income tax expense
(3,591)
(3,863)
(10,663)
(9,478)
Net and comprehensive income
10,431
9,384
31,096
25,315
Basic earnings per Unit
0.49
0.44
1.46
1.19
Diluted earnings per Unit
0.49
0.44
1.46
1.19
Distributable Cash / Distributions / Payout Ratio
Cash flows generated from operating activities
10,611
9,990
29,815
28,703
BPI Class B Unit entitlement
(1,265)
(1,195)
(3,512)
(3,362)
Interest paid on debt
(851)
(758)
(2,499)
