HIGHLIGHTS
Fourth quarter and annual Franchise Sales[1] of $244.4 million for the Period and $976.3 million for the Year, representing increases of 4.3% and 4.8%, respectively, versus the same periods one year ago.
Same Restaurant Sales[2] of 3.7% for the Period and 4.7% for the Year.
Cash flows generated from operating activities of $9.9 million for the Period and $39.7 million for the Year, representing increases of 4.9% and 4.1%, respectively, versus the same periods one year ago.
Distributable Cash[3] increased 5.1% for the Period and increased 4.1% for the Year, and Distributable Cash per Unit[4] increased 5.1% for the Period and increased 4.1% for the Year.
Payout Ratio[5] of 127.3% for the Period and 101.9% for the Year, reflecting a special cash distribution to unitholders of the Fund ("Unitholders") of $0.110 per Unit paid on December 31, 2025, driven by the Fund's strong results for the Year. Excluding the special distribution, Payout Ratios would have been 97.5% for the Period and 94.5% for the Year. The Fund's cash balance at the end of the Year was $3.9 million.
On February 10, 2026, the Trustees declared a distribution for the period of January 1, 2026 to January 31, 2026 of $0.120 per Unit, which will be payable on February 27, 2026 to Unitholders of record on February 21, 2026.
VANCOUVER, BC, Feb. 13, 2026 /CNW/ - Boston Pizza Royalties Income Fund (the "Fund") and Boston Pizza International Inc. ("BPI") reported financial results today for the fourth quarter period from October 1, 2025 to December 31, 2025 (the "Period") and January 1, 2025 to December 31, 2025 (the "Year"). A copy of this press release, the audited annual consolidated 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 February 13, 2026 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 March 13, 2026 by dialling 1-855-669-9658 or +1-412-317-0088 and entering the access code: 2685876 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 the Year.
"Boston Pizza delivered strong fourth quarter results to conclude a record setting year, with our restaurants achieving the highest annual franchise sales in the brand's history," said Jordan Holm, President of BPI. "Strategic promotions and disciplined execution helped us successfully navigate macroeconomic challenges throughout the year while driving record-breaking performance. As we enter 2026, we remain vigilant in monitoring evolving economic and political uncertainties and their potential impact on our restaurants, adapting our strategies as needed. We are encouraged by the sustained momentum in our business and remain committed to enhancing guest experiences, supporting our franchisees and driving long-term growth through innovation and operational excellence."
PERIOD AND YEAR RESULTS
SRS, a key driver of distribution growth for Unitholders, was 3.7% for the Period compared to 3.4% reported in the fourth quarter of 2024. SRS for the Period was principally due to continued momentum in take-out and delivery and effective promotional initiatives. SRS was 4.7% for the Year compared to 0.9% reported in 2024. For the Year, SRS was principally due to continued momentum in take-out and delivery, effective promotional initiatives and favourable comparisons to a softer performance in the prior year. Sporting playoffs (baseball for the Period and both baseball and hockey for the Year) also positively impacted SRS.
Franchise Sales of Boston Pizza restaurants in the Royalty Pool were $244.4 million for the Period compared to $234.2 million for the fourth quarter of 2024. The $10.2 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 $976.3 million for the Year compared to $931.7 million in 2024. The $44.6 million increase in Franchise Sales for the Year was primarily due to positive SRS.
The Fund's net and comprehensive income was $11.1 million for the Period compared to $6.6 million for the fourth quarter of 2024. The $4.5 million increase in the Fund's net and comprehensive income for the Period compared to the fourth quarter of 2024 was primarily due to a $5.7 million increase in fair value gain and a $0.6 million increase in Royalty Income6 and Distribution Income7, partially offset by a $1.5 million increase in income tax expense and a $0.3 million increase in net interest expense. The Fund's net and comprehensive income was $42.2 million for the Year compared to $31.9 million in 2024. The $10.3 million increase in the Fund's net and comprehensive income for the Year compared to 2024 was primarily due to a $10.7 million increase in fair value gain, a $2.4 million increase in Royalty Income and Distribution Income and a $0.2 million decrease in administrative expenses, partially offset by a $2.6 million increase in income tax expense and a $0.3 million increase in net interest expense.
Cash generated from operating activities for the Period was $9.9 million compared to $9.4 million in the fourth quarter of 2024. The increase of $0.5 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 $0.2 million. Cash generated from operating activities for the Year was $39.7 million compared to $38.1 million in 2024. The increase of $1.6 million was primarily due to an increase in Royalty Income and Distribution Income of $2.4 million and a decrease in administrative expenses of $0.2 million, partially offset by an increase in income taxes paid of $0.7 million, a decrease in changes in working capital of $0.2 million and a decrease in interest received of $0.1 million.
The Fund generated Distributable Cash of $7.9 million for the Period compared to $7.5 million for the fourth quarter of 2024. The increase in Distributable Cash of $0.4 million or 5.1% was primarily due to an increase in cash flows generated from operating activities of $0.5 million, partially offset by a $0.1 million increase in BPI Class B Unit entitlement8. The Fund generated Distributable Cash of $31.6 million for the Year compared to $30.4 million for the same period in 2024. The increase in Distributable Cash of $1.2 million or 4.1% was primarily due to an increase in cash flows generated from operating activities of $1.6 million, partially offset by higher Class B Unit entitlement of $0.2 million and a $0.1 million increase in interest paid on debt.
The Fund generated Distributable Cash per Unit of $0.369 for the Period compared to $0.351 per Unit for the same period in 2024. The increase in Distributable Cash per Unit of $0.018 or 5.1% was primarily attributable to the increase in Distributable Cash outlined above. The Fund generated Distributable Cash per Unit of $1.487 for the Year compared to $1.429 per Unit in 2024. The increase in Distributable Cash per Unit of $0.058 or 4.1% was primarily attributable to the increase in Distributable Cash outlined above.
The Fund's Payout Ratio for the Period was 127.3% compared to 118.4% in the fourth quarter of 2024. The increase in the Fund's Payout Ratio for the Period was due to distributions paid increasing by $1.1 million or 13.0%, partially offset by Distributable Cash increasing by $0.4 million or 5.1%. For the Year, the Fund's Payout Ratio was 101.9% compared to 99.9% in 2024. The increase in the Fund's Payout Ratio for the Year was due to distributions paid increasing by $1.9 million or 6.2%, partially offset by Distributable Cash increasing by $1.2 million or 4.1%. The increase in distributions paid for the Period and the Year were due to increases in the monthly distribution rate and the Net Higher Special Distribution outlined below, which were enabled by the strong financial performance of the Fund. Excluding the special cash distribution to Unitholders of $0.110 per Unit paid to Unitholders on December 31, 2025, the Payout Ratio for the Period and Year would have been 97.5% and 94.5%, respectively. 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.
DISTRIBUTIONS
During the Period, the Fund declared distributions on the Units in the aggregate amount of $12.6 million or $0.590 per Unit. During the fourth quarter of 2024, the Fund declared distributions on the Units in the aggregate amount of $11.3 million or $0.531 per Unit. During the Period, the Fund paid distributions on the Units in the aggregate amount of $10.0 million or $0.470 per Unit. During the fourth quarter of 2024, the Fund paid distributions on the Units in the aggregate amount of $8.9 million or $0.416 per Unit. The amount of distributions declared and paid during the Period increased by $1.3 million and $1.1 million, respectively, or $0.059 per Unit and $0.054 per Unit, respectively, due to: (a) 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"); and (b) the special cash distribution to Unitholders of $0.110 per Unit that was declared on December 8, 2025 and paid to Unitholders on December 31, 2025 being $0.035 per Unit greater than the special cash distribution to Unitholders of $0.075 per Unit that was declared on December 6, 2024 and paid to Unitholders on December 31, 2024 (the "Net Higher Special Distribution"). During the Year, the Fund declared distributions on the Units in the aggregate amount of $32.3 million or $1.520 per Unit. In 2024, the Fund declared distributions on the Units in the aggregate amount of $30.5 million or $1.435 per Unit. During the Year, the Fund paid distributions on the Units in the aggregate amount of $32.2 million or $1.515 per Unit. In 2024, the Fund paid distributions on the Units in the aggregate amount of $30.4 million or $1.427 per Unit. The amount of distributions declared during the Year increased by $1.8 million or $0.085 per Unit due to the 2024 Distribution Increase, the 2025 Distribution Increase and the Net Higher Special Distribution. The amount of distributions paid during the Year increased by $1.9 million or $0.088 per Unit due to the monthly distribution rate increasing from $0.107 per Unit to $0.113 per Unit commencing with the January 2024 distribution (i.e. meaning that the December 2023 distribution, which was paid on January 31, 2024, was only $0.107 per Unit), the 2024 Distribution Increase, the 2025 Distribution Increase and the Net Higher Special Distribution.
The Fund pays distributions on the Units in respect of any calendar month not later than the last business day of the immediately subsequent month. Consequently, monthly distributions payable by the Fund on the Units in respect of the Period were the October 2025 distribution (which was paid on November 28, 2025), the November 2025 distribution (which was paid on December 31, 2025) and the December 2025 distribution (which was paid on January 30, 2026). Similarly, the distributions payable by the Fund on the Units in respect of any other period are paid in the immediately subsequent month of such period.
On February 10, 2026, the Trustees declared a distribution for the period of January 1, 2026 to January 31, 2026 of $0.120 per Unit, which will be payable on February 27, 2026 to Unitholders of record on February 21, 2026. Including the January 2026 distribution, which will be paid on February 27, 2026, the Fund will have paid out total distributions of $488.2 million or $29.09 per Unit, which includes 277 monthly distributions and four special distributions.
FINANCIAL SUMMARY
The tables below set out selected information from the Fund's audited annual consolidated financial statements together with other data and should be read in conjunction with the audited annual consolidated financial statements and MD&A of the Fund for the years ended December 31, 2025, 2024 and 2023.
For the years ended December 31
2025
2024
2023
(in thousands of dollars, except restaurants, SRS, Payout Ratio and per Unit items)
Number of restaurants in Royalty Pool
372
372
377
Franchise Sales reported by restaurants in the Royalty Pool
976,255
931,652
925,655
Royalty Income
39,050
37,266
37,026
Distribution Income
12,837
12,242
12,167
Total revenue
51,887
49,508
49,193
Administrative expenses
(1,540)
(1,713)
(1,489)
Interest expense on debt and financing fees
(3,485)
(3,517)
(3,370)
Interest expense on Class B Unit liability
(4,773)
(4,506)
(3,990)
Interest income
170
274
276
Profit before fair value gain (loss) and income taxes
42,259
40,046
40,620
Fair value gain on investment in BP Canada LP
27,933
11,730
1,364
Fair value loss on Class B Unit liability
(12,446)
(5,226)
(608)
Fair value loss on Swaps
(865)
(2,607)
(1,436)
Current and deferred income tax expense
(14,715)
(12,071)
(10,374)
Net and comprehensive income
42,166
31,872
29,566
Basic earnings per Unit
1.98
1.50
1.38
Diluted earnings per Unit
1.98
1.50
1.34
