TORONTO, April 18 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund")
(TSX: PZA.UN) today announced a cash distribution of $0.0695 per unit for the
month of April, 2006. The distribution will be payable to unitholders of
record at the close of business on April 28, 2006, and will be paid on May 15,
2006.
Pizza Pizza restaurants experienced 5.4% same store sales growth ("SSSG")
for the most recent quarter ended March 31, 2006; SSSG for the past two fiscal
years were 5.7% for 2005 and 5.9% for 2004. Sales were slightly, negatively
impacted by a three-week teachers' strike at 27 non-traditional college
locations; the locations reopened March 27, 2006.
The Fund
The Fund is a limited purpose, open-ended trust established under the
laws of Ontario to indirectly acquire certain trademarks and trade names used
by Pizza Pizza in its restaurants. The trademarks are licensed to Pizza Pizza
for 99 years, for which Pizza Pizza pays the Fund a royalty equal to 6% of the
system sales of its 501 Pizza Pizza restaurants in Canada as at January 1,
2006 (the "Royalty Pool"). A key attribute of the Fund is that it is based on
top-line, system sales of the Royalty Pool restaurants and not on the
profitability of either Pizza Pizza or the restaurants in the Royalty Pool.
The success of the Fund depends primarily on the ability of Pizza Pizza to
maintain and increase system sales of the Royalty Pool and to meet its royalty
obligations.
The Company
Pizza Pizza Limited, a privately held-Canadian corporation, is one of
Canada's most successful players in the quick service restaurant industry.
Founded in 1967, Pizza Pizza is guided by a mission to provide the "best food,
made especially for you" and a focus on quality ingredients, customer service,
community contribution and continual innovation.
The Fund's trust units are listed on the Toronto Stock Exchange under the
symbol PZA.UN.
%SEDAR: 00022262EF
