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Highlights
Pizza has a wide following around the world, and it has become only more popular in the age of online food delivery. This massive demand often makes pizza businesses a tasty investment opportunity to explore.
While Pizza Pizza Royalty Corp (TSX:PZA) and Boston Pizza Royalties Income Fund (TSX: BPF.UN) are known players in the foodservice industry, General Assembly is another Canadian publicly trading pizza enterprise to look at. So, as we begin another weekend, let us talk about these three Canadian pizza stocks.
Pizza Pizza Royalty Corp (TSX:PZA)
Pizza Pizza Royalty is the owner and franchiser of the Pizza Pizza and Pizza 73 banners. The small-cap company offers a wide variety of pizzas via its 600 traditional and quick service restaurants across Canada.
Pizza Pizza Royalty saw its total system sales grow to C$ 137.72 million in Q4 FY2021 compared to C$ 123.68 million in Q4 2020. The restaurant posted an increased royalty income of C$ 8.89 million in the latest quarter compared to C$ 8.03 million a year ago. The C$ 420 million market cap firm recorded adjusted earnings from operations of C$ 6.90 million in Q4 2021 compared to C$ 6.25 million in Q4 2020.
PZA stock seems to have gained investors’ attention during March as its Relative Strength Index (RSI) value approached 80-mark, according to the EODHD/Others data. However, its RSI appears to have dropped in the second half of April and stood at 36.6 as of May 5. The pizza stock swelled by nearly 22 per cent in 52 weeks.
Also read: Nuvei (NVEI) and MOGO: 2 undervalued TSX fintech stocks to buy?
Boston Pizza Royalties Income Fund (TSX:BPF.UN)
Boston Pizza operates and sells the Boston Pizza franchise nationwide and earns royalty income. The Fund is scheduled to announce its Q1 FY2022 results on May 11.
Boston Pizza recorded a royalty income of C$ 7.32 million in the last quarter of FY2021, marking a quarter-on-quarter (QoQ) decline from C$ 8.52 million. The Fund posted total revenue of C$ 9.75 million and distributable cash of C$ 6.07 million in Q4 2021.
BPF.UN zoomed by roughly 22 per cent year-over-year (YoY), and according to EODHD/Others, its RSI value was at 37.28 as of May 5.
General Assembly Holdings Limited (TSXV:GA)
General Assembly Holdings is a pizza restaurant company than sells frozen pizzas to consumers directly and consumer packaged goods (CPG) via speciality grocery stores. The TSXV company entered into a wholesale partnership with Loblaw Companies (TSX:L)’s Fortinos Supermarket to make available its pizza across Fortinos banners.
GA stock spiked by over six per cent in the past three months and had an RSI value of 43.56 on May 5, as per EODHD/Others data.
Bottomline
Canadians can explore these pizza stocks if they want to benefit from future developments in the foodservice industry. Notably, Pizza Pizza Royalty and Boston Pizza are quite regular in dividend payments, which could increase investors’ income stream.
Also read: Shopify (TSX:SHOP) posts Q1 revenue surge of 22% YoY. Time to buy?
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
