TORONTO, Feb. 16 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund")
(TSX: PZA.UN) is pleased to announce that it is increasing monthly cash
distributions again.
The monthly distributions will increase 2.06% to $0.0695 per unit from
$0.0681 per unit. The monthly distribution of $0.0695 per unit for the period
from February 1, 2006 to February 28, 2006 will be payable to unitholders of
record at the close of business on February 28, 2006 and will be paid on
March 15, 2006. This is the Fund's second distribution increase since its
establishment on July 6, 2005.
Pizza Pizza restaurants experienced 6% same store sales growth ("SSSG")
for the most recent quarter ended December 31, 2005; SSSG for the past two
fiscal years were 5.7% for 2005 and 5.9% for 2004.
According to Daniel Vukovich, Chief Operating Officer, the Pizza Pizza
business continues to demonstrate growth. "As our same store sales have
increased approximately 6% since the Fund's initial public offering, the Fund
has accumulated a comfortable cash reserve and we are very pleased that the
Fund can increase distributions a second time."
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
