Pizza Pizza, Pizza 73 have disappointing Q2
The parent company of Pizza Pizza and the Pizza 73 chains shared disappointing quarterly and half-year financials today for the period ending June 30. Pizza Pizza Royalty Corp. said sales dropped 2.6 percent in Q2 for the two brands, with same-store sales down 3.3 percent, according to a news release.
Those declines put quarterly system sales for the 758 restaurants in the Royalty Pool at $131.1 million, down from $134.6 million the previous year's quarter when there were 751 locations in the Royalty Pool.
Year-to-date results for the two chains include:
- 0.8 percent drop in Royalty Pool sales to $266.4 million.
- Same-store sales growth down 1.7 percent.
- 11 locations added to network.
The company said the average customer check increased due to increasing retail prices to partially offset provincial minimum wage increases. The price increases resulted in softness in traffic counts compared to one year ago. Management is closely monitoring consumer reaction to retail pricing strategies, in what continues to be a highly competitive, value-oriented retail environment.
"While disappointed in the short-term softness in customer traffic, our Pizza Pizza and Pizza 73 brands continue focusing on operational excellence and enhancing the brands' image by investing heavily in high-quality menu offerings and technological innovation," Pizza Pizza Limited's CEO Paul Goddard said in the release. "We feel this strategy will continue improving the customer experience, restaurant profitability and brand positioning in the marketplace."