Q2 2026 Boston Pizza Royalties Income Fund Earnings Call Transcript
Key Points
- Record franchise sales of $256.5 million in Q2 2026, up 1.9% year-over-year, and $494.9 million year-to-date, up 2.5%.
- Same restaurant sales (SRS) grew 2.3% in Q2 and 2.7% year-to-date, marking the seventh consecutive quarter of positive SRS.
- Distributable cash increased 3.4% in Q2 and 3.2% year-to-date, with distributable cash per unit rising to $0.386 and $0.741, respectively.
- Strong guest engagement driven by successful promotions like the FIFA World Cup and hockey playoffs, boosting traffic and sales.
- Franchisees are investing heavily in renovations, with over 21 completed year-to-date and a target of 40+ for 2026, enhancing guest experience.
- Three new restaurants are under construction (Revelstoke, Dryden, The Pas), indicating continued system growth.
- Cash flows from operating activities increased to $10.4 million in Q2 and $20 million year-to-date, up from $9.9 million and $19.2 million, respectively.
- Net income fell to $5.9 million in Q2 2026 from $14.3 million in Q2 2025, due to an $11.5 million increase in fair value loss.
- Payout ratio rose to 96.3% in Q2 and 98.8% year-to-date, up from 92.3% and 96.1% respectively, with a trailing 12-month ratio of 103.1%.
- Four restaurants permanently closed year-to-date, including two in Q2, though management attributes this to lease expirations and development, not brand weakness.
- No new restaurants opened in Q2 or year-to-date, with openings delayed due to construction and permitting issues.
- Geopolitical risks, including the Middle East conflict, could lead to supply chain disruptions and higher input costs, potentially impacting consumer spending.
- Interest expenses increased by $0.2 million in Q2 and year-to-date, partially offsetting distributable cash growth.
- The Fund's net income year-to-date decreased to $18.1 million from $20.7 million, driven by lower fair value gains and higher interest costs.
Thank you for standing by. Welcome to Boston Pizza's second quarter conference call. The conference is being recorded on August 13, 2026. (Operator Instructions) At this time, I would like to turn the conference over to Michael Harbinson, Chief Financial Officer. Please go ahead.
Good morning, and welcome to the call. Today we'll be discussing the 2026 second quarter results for both Boston Pizza Royalties Income Fund, or the Fund, and for Boston Pizza International, or BPI. For complete details on our financial results, please see our second quarter materials filed earlier today on SEDAR+ or the Fund's website at bpincomefund.com.
Should you require additional information after the call, you can reach out to our Investor Relations at [email protected]. The Fund is a limited-purpose, open-ended trust established under the laws of British Columbia.
Its purpose is to acquire, indirectly, certain trademarks and trade names used by BPI and
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