2 Canadian pizza stocks to enjoy this weekend

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2 Canadian pizza stocks to enjoy this weekend

Canadian restaurants industry in Q4 FY2021
Image source: Copyright © 2021 Kalkine Media


  • Fading COVID-19 effects in the economy along with winter season might bolster the business for restaurants and diners.
  • A restaurant fund mentioned here noted its unit increase by nearly 67 per cent in the last 12 months.
  • A restaurant stock listed below posted a price-to-earnings (P/E) ratio of 16.40.

As more people are getting vaccinated, the lockdown restrictions are also slowly being relaxed in Canada, which could positively influence the restaurant businesses severely impacted by the pandemic.

But even in a post-pandemic world, the popularity of online food deliveries is not likely to get bulldozed as many people generally enjoy the comfort of having hot food like pizzas delivered to their doorsteps.

Also read: 2 Canadian aviation stocks to buy in Q4 2021

Keeping that in mind, let us have a quick look at the two TSX-listed pizza stocks.

1.     Pizza Pizza Royalty Corp (TSX: PZA)

Pizza Pizza Royalty Corp, a Toronto-based quick service restaurants company, saw its Royalty Pool sales surge by 3.5 per cent year-over-year (YoY) to C$ 129.7 million in the third quarter of fiscal 2021.

The company’s same store sales rose by 2.8 per cent YoY and adjusted earnings grew by two per cent to C$ 0.202 per share in the latest quarter.

PZA stock also spiked by about nine per cent in the last 90 days and surged by more than 32 per cent over the past 12 months.

The Canadian restaurant company is scheduled for a monthly dividend of C$ 0.06 per share on November 15.

Pizza Pizza Royalty Corp held a price-to-earnings (P/E) ratio of 16.40 and a return on equity (ROE) of 8.16 per cent as the time of writing.

2.     Boston Pizza Royalties Income Fund (TSX: BPF.UN)

Canadian open-ended trust fund Boston Pizza Royalties Income Fund operates and franchises its restaurants in Canada. As the pandemic restrictions eased this year, 98 per cent of its restaurants provided on-premises dining services, take-out and delivery services in Q3 FY2021.

Its system wide sales increased by 12.3 per cent YoY to C$ 266.4 million in the latest quarter. Franchise sales also soared by 14.9 per cent YoY to C$ 213 million in this quarter.

Boston Pizza Royalties Income Fund (TSX:BPF.UN)’s performance as of November 17, 2021 

Image source: © 2021 Kalkine Media Inc

The units of Boston Pizza Royalties Income Fund jumped by about 17 per cent in value in the last three months and swelled by roughly 48 per cent year-to-date (YTD). It delivered a return of nearly 67 per cent in the last 12 months.

At the time of writing this, the fund held a price-to-book (P/B) ratio of 1.295 and an ROE of 15.86 per cent.

Also read: 2 real estate stocks to buy as Canada’s home sales surge

Bottom line

With rising vaccination rates, Canadian restaurants might see notable demand for dining and food services as people are excited about normal market situations after almost two years.

However, the current inflation scenario is a major factor that should be noted as it could affect consumer behavior.


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