Pizza Pizza Royalty Corp. · TSX:PZA
Pizza Pizza Royalty — Shareholder Meeting (May 2024)
32 slides from Pizza Pizza Royalty's shareholder meeting presentation, May 31, 2024
Slide 1: 2023 Annual General Meeting of Shareholders
PIZZA PIZZA ROYALTY CORP 2023 ANNUAL GENERAL MEETING OF SHAREHOLDERS May 31, 2024
Slide 2: Welcome
WELCOME JAY SWARTZ PIZZA PIZZA ROYALTY CORP. BOARD CHAIR 3
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS ● This presentation will contain forward-looking statements. ● Investors should be aware that any forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those disclosed here today. ● Investors are directe
Slide 4: Pizza Pizza Royalty Corp. Financial Update
PIZZA PIZZA ROYALTY CORP. FINANCIAL UPDATE PAUL GODDARD CEO, PIZZA PIZZA LIMITED 5
Slide 5: Corporate Structure
CORPORATE STRUCTURE Public Shareholders PPRC OWNERSHIP PPL PPRC Fully Diluted Shares % Public Shareholders 24,618,392 74.8% PPL Equivalent Shares 8,290,239 25.2% 25.2% of GP 74.8% of GP Common Shares Pizza Pizza Common Shares Total 32,908,631 100.0% Royalty Limited Partnership $47 M License and Cred
Slide 6: Royalty Stream Overview
ROYALTY STREAM OVERVIEW PPL Royalty Royalty Income to Dividends to PPRC Pool PPRC Shareholders System Sales 7
Slide 7: Shareholder Information
SHAREHOLDER INFORMATION ● TSX exchange listing PZA ● Publicly-traded shares outstanding 24,618,392 ● Fully Diluted shares 32,908,631 ● Pizza Pizza Limited’s ownership 25.2 % ● Market Capitalization $ 441 Million ● Currently monthly dividend $ 0.0775 ● Current dividend yield 6.9 % ● Credit facility $
Slide 8: PZA.TO Performance
Dividend Dividend PZA.TO PERFORMANCE increase increase Dividend Dividend increase increase Dividend Dividend increase increase Dividend increase Dividend Peak increase COVID-19 May 30, 2024 PPRC increased the dividend seven times in the last three years 9
Slide 9: Performance Highlights
PERFORMANCE HIGHLIGHTS 2023 Q1 2024 Royalty Pool System Sales $ 628 M $ 149 M Restaurants in Royalty Pool 743 (+16) 774 (+31) Same Store Sales Growth (SSSG) 8.2 % 1.7 % Royalty Revenue $ 40.2 M $ 9.6 M Annual dividend $ 0.8875 $ 0.2325 Working Capital Reserve $ 8.2 M $ 7.2 M Payout Ratio 97 % 122 %
Slide 10: Monthly Dividend Growth
MONTHLY DIVIDEND GROWTH +3.3% +3.6% +3.5% +1.9% +2.5% +2.3% +3.8% +3.7% +2.6% +2.7% +4.2% +4.0% +8.3% +9% +10% -30% PPRC increased the dividend seven times subsequent to the COVID-19 related decrease in April 2020 11
Slide 11: SSSG and Working Capital
SSSG AND WORKING CAPITAL Secondary Offering COVID-19 Global Recession Global Recessio PPRC’s healthy cash reserve of $7.3M is available during sales variability 12
Slide 12: Pizza Pizza Limited Business Update
PIZZA PIZZA LIMITED BUSINESS UPDATE PAUL GODDARD CEO, PIZZA PIZZA LIMITED 13
Slide 13: Business Fundamentals
BUSINESS FUNDAMENTALS 14
Slide 14: Strong Brand Portfolio Poised for Growth
STRONG BRAND PORTFOLIO POISED FOR GROWTH 469 traditional and 207 non-traditional locations 102 locations in Alberta, 3 locations in Guadalajara, Mexico, with across Canada, with a majority in Ontario & Quebec. Saskatchewan & British Columbia. a target of 10 new restaurants per year. Rapid expansion
Slide 15: Iconic Canadian Brand with #1 Market Position
ICONIC CANADIAN BRAND WITH #1 MARKET POSITION 16
Slide 16: Track Record of Steady Restaurant Growth
TRACK RECORD OF STEADY RESTAURANT GROWTH Restaurant Count Since IPO 272 Restaurants Added 777 742 3 732 739 752 760 773 749 726 727 102 695 690 694 723 99 640 671 108 113 616 94 102 103 101 104 104 103 203 531 81 88 89 89 190 505 57 72 187 231 222 225 228 231 232 217 205 192 199 216 228 225 219 165
Slide 17: International Expansion Opportunities
INTERNATIONAL EXPANSION OPPORTUNITIES
Slide 18: Building Our Brands
BUILDING OUR BRANDS FIXED RATE PIZZA provides a value PRE-ROLLS caters to the cannabis SAUCE-TUME responds to the fans SPORTS SPONSORSHIPS build fan message during a period of high interest community with a fun, innovative of our dipping sauce with a cheeky engagement in venue and encourage rates, i
Slide 19: Investing in Food Quality
INVESTING IN FOOD QUALITY 100% Canadian Cheese Curds Dry Cured Pepperoni 100% Canadian Canadian Chicken Mozzarella Cheese Raised Without Antibiotics Homestyle Sauce from Vine Ripened Tomatoes 100% Canadian Wheat 20
Slide 20: Innovating Our Menu
INNOVATING OUR MENU SPICE DELIGHTS features a selection STUFFED CRUST builds on the STROMBOLI introduces a new CURLY FRIES POUTINE uses food of South Asian flavours that established cravings our handheld menu offering that innovation to update a classic showcases our menu innovation. customers have
Slide 21: Delivering on Value
DELIVERING ON VALUE Guaranteed delivery times or it's free Track your delivery order in our app Your Pizzas stay hot in our certified delivery bags Quick Delivery by car, never by bike One delivery fee, never surged prices Continuous promotion of high quality, value oriented offerings, and popular w
Slide 22: Investing in Communities
INVESTING IN COMMUNITIES SPORTS SPONSORSHIPS let us connect with SLICES FOR SMILES promotions PRIDE PARADE sponsorships MUSIC VENUES are the perfect place sports fans, especially the hugely allow us to fundraise for help us support LGBTQ2S+ to enjoy a pizza slice and connect passionate fans of the P
Slide 23: Multi-Channel Ordering Platform
MULTI-CHANNEL ORDERING PLATFORM + + Call Centre DIGITAL CALL CENTRE IN-RESTAURANT Multi-channel ordering platform provides multiple touchpoints for consumers and supports focus on convenience 24
Slide 24: Continuously Leveraging Technology & Innovation
CONTINUOUSLY LEVERAGING TECHNOLOGY & INNOVATION Delivery Driver Loyalty Program, Push Notifications Pizza 73 Website and Tracking and Email Marketing Mobile App Redesign Leverages organic and third party technology to ensure the Pizza Pizza and Pizza 73 brands are top of mind with consumers with stro
Slide 25: Re-imaged Exteriors
RE-IMAGED EXTERIORS OLD NEW Restaurant re-imaging keeps our brands current and top of mind, driving SSS 26
Slide 26: Re-imaged Interiors
RE-IMAGED INTERIORS OLD NEW Restaurant re-imaging keeps our brands current and top of mind, driving SSS 27
Slide 27: Impressive History of Awards & Recognition
IMPRESSIVE HISTORY OF AWARDS & RECOGNITION Strategy Magazine Canadian Marketing Canadian Marketing Waterstone Great Place to Work Career Directory Brands of the Year Association Effectiveness (Effie) Pinnacle Awards CFA D&I Champion Franchisee’s Choice CFA Recognition Company of the Year 2013 Webby A
Slide 28: Industry Authority and Leadership
INDUSTRY AUTHORITY AND LEADERSHIP Track record of recognition in the media for our financial results, marketing accomplishments, brand strength, company culture and operational innovation. 29
Slide 29: Environmental, Social, Governance
ENVIRONMENTAL, SOCIAL, GOVERNANCE OUR OUR PLANET FOOD Our packaging (boxes, slice Head office uses 3 wind Thermoelectric generators Over $3 million Carbon reduction, Food safety, ethical trays, bags, napkins) is all turbines, battery farm, an capture and divert waste has been raised packaging, food
Slide 30: Investment Summary
INVESTMENT SUMMARY Pizza Pizza's been delivering great pizza since 1967 and consistent, increasing value to our shareholders since our IPO in 2005. 31
Slide 31: Advantages of PZA
ADVANTAGES OF PZA ● Exceptional Brand Recognition ● Simple Royalty Structure ● High-yield Dividend Corp ● Strong Sales Growth History ● Healthy Cash Position ● Poised for Growth 32
Slide 32: Thank You!
Thank You!