Business
Pizza Pizza Royalty Income Fund Increases Distribution in February
Pizza Pizza Royalty Income Fund Increases Distribution in February.
About this update from Pizza Pizza Royalty Corp.
[{"type":"text","content":"\n\n\n\n\nTORONTO, Feb. 16 /CNW/ - Pizza Pizza Royalty Income Fund (the \"Fund\")\n(TSX: PZA.UN) is pleased to announce that it is increasing monthly cash\ndistributions again.\nThe monthly distributions will increase 2.06% to $0.0695 per unit from\n$0.0681 per unit. The monthly distribution of $0.0695 per unit for the period\nfrom February 1, 2006 to February 28, 2006 will be payable to unitholders of\nrecord at the close of business on February 28, 2006 and will be paid on\nMarch 15, 2006. This is the Fund's second distribution increase since its\nestablishment on July 6, 2005.\nPizza Pizza restaurants experienced 6% same store sales growth (\"SSSG\")\nfor the most recent quarter ended December 31, 2005; SSSG for the past two\nfiscal years were 5.7% for 2005 and 5.9% for 2004.\nAccording to Daniel Vukovich, Chief Operating Officer, the Pizza Pizza\nbusiness continues to demonstrate growth. \"As our same store sales have\nincreased approximately 6% since the Fund's initial public offering, the Fund\nhas accumulated a comfortable cash reserve and we are very pleased that the\nFund can increase distributions a second time.\"\nThe Fund is a limited purpose, open-ended trust established under the\nlaws of Ontario to indirectly acquire certain trademarks and trade names used\nby Pizza Pizza in its restaurants. The trademarks are licensed to Pizza Pizza\nfor 99 years, for which Pizza Pizza pays the Fund a royalty equal to 6% of the\nsystem sales of its 501 Pizza Pizza restaurants in Canada as at January 1,\n2006 (the \"Royalty Pool\"). A key attribute of the Fund is that it is based on\ntop-line, system sales of the Royalty Pool restaurants and not on the\nprofitability of either Pizza Pizza or the restaurants in the Royalty Pool.\nThe success of the Fund depends primarily on the ability of Pizza Pizza to\nmaintain and increase system sales of the Royalty Pool and to meet its royalty\nobligations.\n\nPizza Pizza Limited, a privately held-Canadian corporation, is one of\nCanada's most successful players in the quick service restaurant industry.\nFounded in 1967, Pizza Pizza is guided by a mission to provide the \"best food,\nmade especially for you\" and a focus on quality ingredients, customer service,\ncommunity contribution and continual innovation.\nThe Fund's trust units are listed on the Toronto Stock Exchange under the\nsymbol ...