TORONTO, Jan. 12 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund")
(TSX: PZA.UN) today announced a cash distribution of $0.0681 per unit for the
month of January, 2006. The distribution will be payable to unitholders of
record at the close of business on January 31, 2006, and will be paid on
February 15, 2006.
Business activities underlying the Fund continue to be solid as Pizza
Pizza Limited ("Pizza Pizza") experienced a 6% growth over the same period
last year in same-store sales for the quarter ending December 31, 2005. System
Sales of the Pizza Pizza restaurants in the Royalty Pool described below for
the quarter ended December 31, 2005, were approximately $ 89,650,000.
"Pizza Pizza's steady and sustained growth is a reflection of its
continued quest for innovation and doing our utmost to meet - and surpass -
consumer expectations," said Daniel Vukovich, COO for Pizza Pizza. "We've been
able to accomplish this through a collective effort by our marketing team,
product developers, nutritionists, franchise partners and the entire Pizza
Pizza staff."
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.
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
