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Pizza Pizza same-store sales slow in Q4
March 18, 2009
TORONTO, Ontario -- Same-store sales at Canadian pizza chain Pizza Pizza increased 1.7 percent in 2008 compared with the previous year, the company has announced. Same-store sales for the fourth quarter ended Dec. 31 fell 0.6 percent.
Revenues for the 609 restaurants in the Pizza Pizza Royalty Income Fund's royalty pool were $122.4 million for the fourth quarter, up 3 percent compared with revenues for the fourth quarter of 2007. Revenues for the year were $470.6 million, up 15 percent compared with revenues of $409.5 million for the previous year.
The annual increase in royalty pool sales was the result of the positive same store sales growth, the addition of 37 net new restaurants to the royalty pool on Jan. 1, 2008, and the full-year impact of the 41 Pizza 73 restaurants added to the royalty pool on July 24, 2007.
The Pizza Pizza Royalty Income Fund is a limited purpose, open-ended trust established under the laws of Ontario which has acquired the trademarks and trade names used by Pizza Pizza Ltd. in its Pizza Pizza and Pizza 73 restaurants. The company pays the fund a royalty equal to 6 percent of the system sales of the 568 Pizza Pizza restaurants in the royalty pool and a royalty equal to 9 percent of the 69 Pizza 73 restaurants in the royalty pool for 2009.
Earnings for the year, before income taxes, were $21.9 million, up 18 percent compared with earnings before income taxes of $18.5 million in 2007. In the fourth quarter of 2008, earnings before taxes were $5.7 million, up slightly compared with pre-tax net earnings of $5.6 million for the fourth quarter of 2007.
The company opened two traditional locations and one non-traditional location and closed two traditional locations during the fourth quarter. For the year, the company opened six traditional and 12 non-traditional locations and closed four traditional and five non-traditional locations.
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