HIGHLIGHTS
Franchise Sales1 of $238.4 million for the Period, representing an increase of 3.1% versus the same period one year ago.
Same Restaurant Sales2 of 3.1% for the Period.
Cash flows generated from operating activities of $9.6 million for the Period, representing an increase of 3.5% versus the same period one year ago.
Distributable Cash3 and Distributable Cash per Unit4 increased 2.9% for the Period.
Payout Ratio5 of 101.6% for the Period and 102.2% on a trailing 12-month basis. Cash balance at the end of the Period was $3.8 million.
On April 2, 2026, the Fund increased its monthly distribution rate to $0.124 per Unit starting with the March 2026 distribution from the previous monthly rate of $0.120 per Unit, being an increase of $0.004 per Unit, or 3.3%.
On May 12, 2026, the trustees of the Fund declared a distribution for the period of April 1, 2026 to April 30, 2026 of $0.124 per Unit, which will be payable on May 29, 2026 to unitholders of the Fund ("Unitholders") of record on May 21, 2026.
VANCOUVER, BC, May 13, 2026 /CNW/ - Boston Pizza Royalties Income Fund (the "Fund") and Boston Pizza International Inc. ("BPI") reported financial results today for the first quarter period from January 1, 2026 to March 31, 2026 (the "Period"). 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 May 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 June 13, 2026, by dialling 1-855-669-9658 or +1-412-317-0088 and entering the access code: 7206100 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.
"We are pleased with our first quarter results, highlighted by strong total franchise sales and same restaurant sales," said Jordan Holm, President of BPI. "Our results demonstrate the resilience of our brand and the continued loyalty of our guests, even amid an increasingly volatile global backdrop and accompanying economic uncertainties. Moving forward, we remain committed to supporting our franchisees, continuing to serve our guests and positioning the business for long-term success."
PERIOD RESULTS
SRS, a key driver of distribution growth for Unitholders, was positive 3.1% for the Period compared to positive 4.4% reported in the first quarter of 2025. SRS for the Period was principally due to increased guest traffic from sustained momentum in the take-out and delivery business and promotional initiatives.
Franchise Sales of Boston Pizza restaurants in the Royalty Pool6 were $238.4 million for the Period compared to $231.1 million for the first quarter of 2025. The $7.3 million increase in Franchise Sales for the Period was primarily due to positive SRS.
The Fund's net and comprehensive income was $12.2 million for the Period compared to $6.3 million for the first quarter of 2025. The increase in the Fund's net and comprehensive income for the Period compared to the first quarter of 2025 was primarily due to a $7.4 million increase in fair value gain and a $0.4 million increase in Royalty Income6 and Distribution Income7, partially offset by a $1.7 million increase in deferred income tax expense, a $0.2 million increase in net interest expense and a $0.1 million increase in current income tax expense.
Cash generated from operating activities for the Period was $9.6 million compared to $9.3 million in the first quarter of 2025. The increase of $0.3 million was primarily due to an increase in Royalty Income and Distribution Income of $0.4 million, partially offset by an increase in income taxes paid of $0.1 million.
The Fund generated Distributable Cash of $7.5 million for the Period compared to $7.3 million for the first quarter of 2025. The increase in Distributable Cash of $0.2 million or 2.9% was primarily due to an increase in cash flows generated from operating activities of $0.3 million, partially offset by higher interest paid on debt of $0.1 million.
The Fund generated Distributable Cash per Unit of $0.354 for the Period compared to $0.344 per Unit for the first quarter of 2025. The increase in Distributable Cash per Unit of $0.010 or 2.9% was primarily attributable to the increase in Distributable Cash outlined above.
The Fund's Payout Ratio for the Period was 101.6% compared to 100.2% in the first quarter of 2025. The increase in the Fund's Payout Ratio for the Period was due to distributions paid increasing by $0.3 million or 4.3%, partially offset by Distributable Cash increasing by $0.2 million or 2.9%. 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 102.2% as of March 31, 2026.
DISTRIBUTIONS
During the Period, the Fund declared distributions on the Units in the aggregate amount of $5.1 million or $0.240 per Unit. During the first quarter of 2025, the Fund declared distributions on the Units in the aggregate amount of $4.9 million or $0.230 per Unit. During the Period, the Fund paid distributions on the Units in the aggregate amount of $7.7 million or $0.360 per Unit. During the first quarter of 2025, the Fund paid distributions on the Units in the aggregate amount of $7.3 million or $0.345 per Unit. The amount of distributions declared during the Period increased by $0.2 million or $0.010 per Unit due to the monthly distribution rate increasing from $0.115 per Unit to $0.120 per Unit commencing with the July 2025 distribution (the "2025 Distribution Increase"). The amount of distributions paid during the Period increased by $0.3 million or $0.015 per Unit due to the 2025 Distribution Increase.
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 January 2026 distribution (which was paid on February 27, 2026), the February 2026 distribution (which was paid on March 31, 2026), and the March 2026 distribution (which was paid on April 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 April 2, 2026, the trustees of the Fund declared a distribution for the period of March 1, 2026 to March 31, 2026 of $0.124 per Unit, which was paid on April 30, 2026 to Unitholders of record on April 21, 2026. This was an increase of $0.004 per Unit, or 3.3%, from the previous monthly distribution rate of $0.120 per Unit. On an annualized basis, the new monthly distribution rate equates to $1.488 per Unit compared to $1.440 per Unit for the previous monthly distribution rate.
On May 12, 2026, the trustees of the Fund declared a distribution for the period of April 1, 2026 to April 30, 2026 of $0.124 per Unit, which will be payable on May 29, 2026 to Unitholders of record on May 21, 2026. Including the April 2026 distribution, which will be paid on May 29, 2026, the Fund will have paid out total distributions of $496.0 million or $29.46 per Unit, which includes 280 monthly distributions and four 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 periods ended March 31, 2026 and March 31, 2025, and the Fund's audited annual consolidated financial statements for the year-ended December 31, 2025.
For the periods ended March 31
Q1 2026
Q1 2025
(in thousands of dollars, except restaurants, SRS, Payout Ratio and per Unit items)
Number of restaurants in Royalty Pool
372
372
Franchise Sales reported by restaurants in the Royalty Pool
238,361
231,142
Royalty Income
9,534
9,246
Distribution Income
3,145
3,036
Total revenue
12,679
12,282
Administrative expenses
(382)
(409)
Interest expense on debt and financing fees
(927)
(834)
Interest expense on Class B Unit liability
(771)
(730)
Interest income
30
47
Profit before fair value gain (loss) and income taxes
10,629
10,356
Fair value gain (loss) on investment in BP Canada LP (defined below)
9,711
(1,910)
Fair value (loss) gain on Class B Unit liability
(4,327)
851
Fair value gain (loss) on Swaps
242
(703)
Current and deferred income tax expense
(4,066)
(2,247)
Net and comprehensive income
12,189
6,347
Basic earnings per Unit
0.57
0.30
Diluted earnings per Unit
0.57
0.21
Distributable Cash / Distributions / Payout Ratio
Cash flows generated from operating activities
9,590
9,265
BPI Class B Unit entitlement8
(1,123)
(1,076)
Interest paid on debt
(895)
(830)
Current income tax expense
(2,593)
(2,506)
Current income tax paid
2,560
2,473
Distributable Cash
7,539
7,326
Distributions paid
7,660
7,341
Payout Ratio
101.6 %
100.2 %
Distributable Cash per Unit
0.354
0.344
Distributions paid per Unit
0.360
0.345
Other
Same Restaurant Sales
