TORONTO, April 17 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund") (TSX: PZA.UN) today announced a cash distribution of $0.073 per unit for the month of April, 2007. The distribution will be payable to unitholders of record at the close of business on April 30, 2007, and will be paid on May 15, 2007.
Business activities underlying the Fund continued to be solid in the first quarter ended March 31, 2007 as Pizza Pizza Limited ("Pizza Pizza") experienced a 5.5% same-store sales growth over the same period last year. System Sales for the quarter, generated by the restaurants in the Fund's Royalty Pool, increased by $7 million or 8% to $89.5 million compared to $82.5 for the same quarter in the prior year. The increase in sales reflects the impact of sales generated by new restaurants in the Royalty Pool and an increase in same store sales.
Pizza Pizza's total system sales for the 13 weeks ended April 1, 2007 were $90.8 million compared to $84.5 million for the 13 weeks ended April 2, 2006, an increase of $6.3 million or 7%. The increase in sales is a result of a 5.5% increase in year-to-date same store sales plus a net of 31 restaurants added since January 1, 2006.
About the Fund, a publicly-traded entity
The Fund is a limited purpose, open-ended trust established under the laws of Ontario to indirectly acquire the trademarks and trade names used by Pizza Pizza in its restaurants. The trademarks were licensed to Pizza Pizza in 2005 for 99 years, for which Pizza Pizza pays the Fund a royalty equal to 6% of the system sales of its Pizza Pizza restaurants in the Royalty Pool. As of January 1, 2007, there were 531 Pizza Pizza restaurants in 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 Fund's trust units are listed on the Toronto Stock Exchange under the symbol PZA.UN.
About Pizza Pizza Limited, the privately-owned operating company
Pizza Pizza Limited, a privately-held Canadian corporation, is one of Canada's most successful operators in the quick service restaurant industry and is celebrating its 40th anniversary this year. 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.
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