pizza pizza royalty corp. · pdf file · 2016-07-042016-06-22 · pizza...
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Pizza Pizza Royalty Corp.Retail & Consumer Small Cap Forum - June 22, 2016
Forward-Looking Statement
¥ This presentation may 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 directed to the Company’s Annual Information Form for a full discussion of risks.
¥ Management does not intend to discuss any undisclosed material information today.
2
3
Curt Feltner Chief Financial Officer
4
Shareholders PZA
Pizza Pizza Royalty Corp.
(79.6%)
Pizza Pizza Royalty Limited Partnership
Pizza Pizza Limited (20.4%)
Organizational Structure
Licence and royalty agreements with Pizza Pizza Limited provide cash flow stability to investors, with limited operational risks.
• Publicly-traded shares outstanding 24.6M
• Fully Diluted shares 30,9M
• Pizza Pizza Limited’s ownership 20.4%
• Market Capitalization $435M
• Annualized, monthly dividend $0.856
• Recent yield 6.0%
• Credit facility matures April 2020 $47M
5PPRC, a high-yield dividend corporation.
Shareholder Information
$35M in Royalty Revenue6% of System Sales 9% of System Sales
Royalty Revenues — 2015
6
The private operating companypays a monthly royalty for use of the trademarks.
7Same store sales growth is the key driver of shareholder yield growth.
2015 Performance Highlights
¥ Royalty Pool System Sales $534 M
¥ SSSG 4.5%
¥ Dividend increased twice
¥ $4.9 million working capital reserve
¥ Adjusted earnings per share $0.895
¥ Dividends per share $0.8155
¥ Loan interest rate reduced 1.37%
¥ Pizza Pizza Limited converted 2.8 million equivalent shares to public shares
0
150
300
450
600
11 12 13 14 15
$534$505$491$482$468
8
($ millions)
Royalty revenues are based on top-line Royalty Pool Sales.
Royalty Pool System Sales
0%
2%
3%
5%
2011
20122013
20142015
4.5%
1.1%
2.1%2.7%2.6%
9
(%)
SSSG is the key driver of shareholder yield growth
Same Store Sales Growth
$0.000
$0.008
$0.016
$0.024
$0.032
$0.040
$0.048
$0.056
$0.064
$0.072
$0.080
Jan-11
May-12
Jan -13
Jun-13
Jan-14
Apr-15
Nov-15
Jun-16
$0.0713$0.0697
$0.0680$0.0667
$0.0650$0.0625
$0.0600$0.0584
2.7%
10
4.2%4.1%
2.6% 1.9% 2.5%
PPRC increased dividends six times in five years.
Dividend Growth2.4%
11
Pizza Pizza Limited
Business Fundamentals
¥ Canada’s #1 pizzeria
¥ Seasoned management team
¥ Strong & proven business model
¥ Powerful brands
¥ Geographic diversification
¥ Modernized restaurant chain
¥ Innovation leader since 1967
12Pizza Pizza Limited’s mandate is to grow and protect the brands.
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of the Toronto Roronto Roronto Raptorsaptorsaptors
large pizza +3 coke!
NNNNNNNEEEWWFFIERY H
OTTT CCCCCHHHHHIIIIIIICCCCCKKKKEEEEENNNN PPPIZZA!
mademademade wit wit wit with ouh ouh ouh ouh ouh ouh ouh ouh our r r r r r new
fierfierfierfierfierfiery hoy hoy hoy hoy hoy hot cht cht cht cht cht chickeickeickeickeicken,n,n,n,
jalajalajalajalajalajalajalapeñopeñopeñopeñopeñopeñopeño pep pep pep peppersperspersperspers,
red red onioonioonioonions ans ans ans ans ans ans ans and
fierfiery hot sat sat sauce!uce!uce!
YOUR CHOICE OF ADD-ON:
5 PCS. FIERY RED HOT
CHICKEN WINGS or
8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JAL8 JALAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEñoAPEño popp popp popp popp popp popp popp popp popp popp popp popp popp popp popp popp popp popp popp popp poppersersersersersersersersersersersersersersersersersersersersersersersersersersersersersersersers
or 6 sauced & tossed
chicken bites.
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MegA MUNCH!
large pizza
+ 3 toppings
+10 pcs. chicken wings
+4 coke + 2 dips
2 medium pizzas
+2 toppings (on each)
+6 coke + 2 dips
2 medium pizzas2 medium um pizpizpizpizpizpizzaszaszaszaszaszaszaszaszas
score savings!
eachchch
$ 9999
$$$$$$$$$$ 99999999999
gs
$23 99
ch)
$18 99
5
pcs. fiery red hot
chicken wings!
8 jalapeño
poppers!
6
sauced & tossed
chicken bites!
upsize to
x-large$3
upsize to XL $3 upsize to LARGE
$5
0
200
400
600
800
06 07 08 09 10 11 12 13 14 15
1031029489898881
7257
225222231219225228216199192176
411408398386376379374369367355
Traditional - Pizza Pizza Non-Traditional - Pizza Pizza Pizza 73
531
616640 671
695 694690 723
Number of Restaurants
13
732 739
TM
Sponsorships Special Events
Non-Traditional Partnerships Build Brand Awareness
Partnering with major sports arenas, entertainment venues and specialcommunity events provide marketing and business opportunities. 14
Non-Traditional Locations
Canada’s #1 Pizza Franchise
15Building a national presence outside our core
Alberta and Ontario markets.
!
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$
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16
The Pizza 73 brand dominates the Alberta pizza market.
17
UPSIZE to large $5
PLENTY FOR
$20GIVE BACK TO
FORT MACwe will donate
$1 to Fort McMurray*
with every plenty for $20 sold!6 7
2 medium 2-topper pizzas 4 coke
Mega MEAL
$2999UPSIZE
to large$5
2 medium 2-topper pizzas+
+
+
+
8 chicken wings 4 coke4 bags of chips 2 dips
o large 55
4444+
++
++
$799MEDIUM1-topper pizza
$999LARGE1-topper pizza
WALK-IN SPECIAL6 7
$499pOUTINE GREEK
SALAD
funnel cake stix+ caramel dip
$599jalapeñO poppers
8 pc.
ADD-ON TO ANY ORDER!
ixdip
$699
$599
SIZZLEWITH OUR
SINGLES6 7
$1299
$1599
SRIRACHACREAMY GARLIC DIP
Pineapple, Chicken, Green Peppersand Sriracha Honey Garlic Sauce
75¢
choose from any of the following pizzas:
Any Veggie Hawaiian 2-Topper Pizza Feast
MINGLE SINGLES
sriracha chicken Donair Mini-Meatball pizza Pizza Feast
withour
MEDIUMPIZZA
LARGEPIZZA
SRIRACHACHICKEN PIZZA + 2 CANS OF COKE
SRIRACHACHICKEN PIZZA + 3 CANS OF COKE
$1099
8 Pcs8 8 8 8 PPPcPcs$829
great add on with yourgluten free
cheese pizza
Place your next order online:
www.pizza73.com
ALWAYS OPEN LATE!
ORDERING PIZZA 73 HAS NEVER BEEN
THIS EASY!
Pizza 73 App foriPhone & iPod Touch®!
*See www.pizza73.com for details on Fort McMurray donations. Some restrictions apply. Taxes and delivery extra. Offers valid until June 19, 2016. Offers subject to expire without notice. ®/TM Coca-Cola Ltd., used under license. Coke Zero is suitable for calorie reduced diets.
Apple, the Apple logo, iPhone, and iPod touch are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Registered trademarks of Pizza Pizza Royalty Limited Partnership, used under license. © Pizza 73 2016. 0018730
+DIP
OVENBAKED
GLUTEN
FREEBONELESS
WINGS
Til 3am Friday & Saturday
In Calgary call:
(40
3)
273-7373
MANY LOCATIONS OPEN FROM 11AM DAILY!
Product Innovation
18New product launches are key to sales building.
NEW! Trio
Italiano Pizza
& Chorizo Potato Pizza
18
Product Innovation
19New product offerings satisfy changes in consumer cravings.
• Raised without antibioticss
• 100% white chicken meat
• Sourced from Canadian faarms
NEW snack-sized sliders:
2 for $5
mini chicken sliders!NEW
mini chicken italiano slider $299
mini chicken sriracha slider $299
Product Quality
20Pizza Pizza’s R&D team source
the highest quality and freshest ingredients
Technological Innovation
21Partnering innovation with consumer convenience
leads to sales growth.
Social Responsibility
22Our fundraising events have raised over $2,000,000
for various charities including the Children’s Miracle Network.Our fundraising events have raised over $2 000 000
23
¥ Royalty Structure ¥ High-yield Dividend Corp ¥ Sales Growth History ¥ Exceptional Brand Recognition ¥ Stable Quick Service Industry ¥ Strong cash position
Advantages of PZA
24
Curt Feltner Pizza Pizza Limited Pizza Pizza Limited
Chief Financial Officer
25