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Investor Insights

This summary was created by AI, based on 5 opinions in the last 12 months.

Pizza Pizza Royalty seems to be a consistent performer with a steady dividend yield, stable earnings and distribution payments, and an established brand present all over Canada. However, there are concerns about its smaller market cap, lower trading activity, and lack of a competitive moat. Overall, experts believe that the company has potential for steady income but may face challenges in achieving significant growth.

Consensus
Steady
Valuation
Fair Value
WATCH
Pizza Pizza Royalty
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Same-store-sales declined again in Q2 paired with royalty pool sales and adjusted earnings declining. We want to monitor the declining SSSG trends, and if they can flatten out over the second half of the year, we would then be comfortable stepping in. 
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food stores
HOLD
Pizza Pizza Royalty
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

PZA has had a slight downturn over the past few months driven by concerns on fourth quarter results. Q4 highlighted slower same-store sales growth at 4% for the quarter compared to 13% in the same period a year prior. This prompted the initial dip, and Q1 results displayed a similar trend. Same-store sales growth in Q1 of 2024 was 1.7%, down from 13.6% in the same period a year prior. Sales growth concerns are the primary diver behind some of the stocks recent weakness.
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food stores
BUY
Pizza Pizza Royalty

A super segment. A pizza is a super economic way to feed a family. PZA is the go-to name in Canada.

food stores
WAIT
Pizza Pizza Royalty

Dividend yield a little high (~7%) - can be a worry. Would wait before investing. Not sure how strong consumer sentiment is. If economy falters - would be a good time to buy. 

food stores
BUY ON WEAKNESS
Pizza Pizza Royalty

Not as much trading activity due to smaller market cap. Under a "distribution" trend (steadily lower highs), which indicates a downward trend. Not a good sign for momentum traders. Would wait for bottom before buying. 

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It's a Monthly Gems opinion which is available only for Premium members

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK
Pizza Pizza Royalty

The fast food chain is as ubiquitous as Starbucks or Tim Horton's in Canada, but flies under the radar of Bay Street. Only one analyst covers PZA, but rates it a buy. What's to like? PZA pays a 6.3% dividend yield which the company increased 3.3% three months ago. Its last quarter topped expectations, while it beat EPS in the prior three. Beta is a steady 0.99. During the first nine months of 2023 same-store sales rose 9.8% while EPS climbed 12.4%. Caveats: average daily volumes are only 23,819, and the company has no moat, though it is an established brand with locations everywhere.

food stores
BUY
Pizza Pizza Royalty

A good small-cap and a solid business. A sleepy stock that's overlooked, but they execute and pay a steady dividend. Pays a nice dividend of over 6%.

food stores
BUY
Pizza Pizza Royalty
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

PZA is a $457.9M company that pays a 6.4% yield. Its performance has been quite resilient over the last few years, and it now trades at a 14.6X forward earnings multiple. PZA operates as a royalty company that collects stable royalty earnings from the franchisee and pays out almost all of its cash flow as distributions. Its balance sheet is decent, with net debt of $39.8M, strong profit margins, and recent sales growth of ~13%. Going forward its sales and earnings are expected to grow in the high-single digits this year, and then ~3% to 5% thereafter, along with inflation. Although growth is not that fast, it is stable, and predictable in earnings and distribution payments. Overall, we like this name for income purposes.
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food stores
BUY ON WEAKNESS
Pizza Pizza Royalty
Allan Tong’s Discover Picks

This Canadian chain is everywhere and its brand is known by everyone. That is PZA‘s strength—an entrenched fast-food chain with locations to serve nearly every corner of this massive country. If an economic slowdown hits, PZA will endure as diners trade down and loyal customers will continue to snack here.
Some numbers work in PZA’s favour: trading at a beta of 1.04, a three-year return of 65.69%, and paying a dividend of nearly 6%. However, that comes at a payout ratio of 92%, while EPS growth shrank 5% YOY. Read Planes, pizza and clothes for our full analysis.

food stores
BUY
Pizza Pizza Royalty
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

PZA’s performance has been quite resilient in the last three years, and is now trading at 15.0x times' Forward P/E.
PZA operates as a royalty company that collect stable royalty earnings from the franchisee and pays out almost all as dividends.
The balance sheet is strong, with net debt of $39M.
Total debt is around 1.3x times trailing twelve-month cash flow of $29M, and cash flow grew around by 16% compared to $24M last year.
Going forward, sales are expected to grow by 3% - 5% along with inflation.
Although growth is not really fast, the company has been stable, and predictable in earnings and dividend payments.
Overall, we think PZA is solid name for income purposes.
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food stores
WAIT
Pizza Pizza Royalty
Small cap. Royalty structure on number of pizzas sold, not involved in the day-to-day operations. Safe, stable, and easy. Shares have moved up considerably, wait for a pullback. Ordering a pizza isn't the only game in town anymore, space is competitive. Nice dividend yield of about 6%.
food stores
BUY
Pizza Pizza Royalty
Allan Tong’s Discover Picks Pizza chains are not the same, and we’re not talking taste. Pizza Pizza suffers from being a Canadian chain where reopenings will take longer to roll-out than in America. Though PZA trades at only 13.65x earnings and pays a 6.29% dividend, it’s also missed two of its last four quarters and its payout ratio is 88.67%. That ratio doesn’t leave much breathing room if there’s a drop in profits. Also, PZA’s dividend has declined about 4.5% annually over the past decade. Read Wine and Pizza: 3 Uplifting Food Stocks for our full analysis.
food stores
DON'T BUY
Pizza Pizza Royalty
The yield is almost 9%, but he'd prefer a lower dividend with better growth. They are losing market share. Don't buy just for the yield. In fact, sell if the yield hits 10%.
food stores
DON'T BUY
Pizza Pizza Royalty
He does not own this. There has been a lot of consolidation in the retail food space. The company has been withering a bit and is feeling the impact of Uber Eats. The question is if they can be re-define themselves. He hopes they don't cut the dividend. He would not buy into it.
food stores
DON'T BUY
Pizza Pizza Royalty
Pays a big yield, but the stock has done poorly. Can they sustain the yield? He doesn't like restaurant stocks--we're at the top of the cycle, so people may eat out less. PZA is struggling with its market position against competitors. They need re-branding or new management as a catalyst.
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Showing 1 to 15 of 70 entries

Pizza Pizza Royalty(PZA-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 4

Stockchase rating for Pizza Pizza Royalty is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Pizza Pizza Royalty(PZA-T) Frequently Asked Questions

What is Pizza Pizza Royalty stock symbol?

Pizza Pizza Royalty is a Canadian stock, trading under the symbol PZA-T on the Toronto Stock Exchange (PZA-CT). It is usually referred to as TSX:PZA or PZA-T

Is Pizza Pizza Royalty a buy or a sell?

In the last year, 4 stock analysts published opinions about PZA-T. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Pizza Pizza Royalty.

Is Pizza Pizza Royalty a good investment or a top pick?

Pizza Pizza Royalty was recommended as a Top Pick by on . Read the latest stock experts ratings for Pizza Pizza Royalty.

Why is Pizza Pizza Royalty stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Pizza Pizza Royalty worth watching?

4 stock analysts on Stockchase covered Pizza Pizza Royalty In the last year. It is a trending stock that is worth watching.

What is Pizza Pizza Royalty stock price?

On 2024-10-07, Pizza Pizza Royalty (PZA-T) stock closed at a price of $13.31.