Month-to-month Dividend Inventory In Focus: Boston Pizza Royalties Earnings Fund

Up to date on April fifteenth, 2026 by Nathan Parsh

Boston Pizza Royalties Earnings Fund (BPZZF) has two interesting funding traits:

#1: It’s a high-yield inventory primarily based on its 5.8% dividend yield.
Associated: Checklist of 5%+ yielding shares.

#2: It pays dividends month-to-month as an alternative of quarterly.
Associated: Checklist of month-to-month dividend shares

You possibly can obtain our full Excel spreadsheet of all 118 month-to-month dividend shares (together with metrics that matter, like dividend yield and payout ratio) by clicking on the hyperlink under:

Boston Pizza Royalties Earnings Fund’s mixture of a excessive dividend yield and a month-to-month dividend funds makes it interesting to particular person buyers who concentrate on revenue.

However there’s extra to the corporate than simply these elements. Maintain studying this text to study extra about Boston Pizza Royalties Earnings Fund.

Enterprise Overview

Boston Pizza Royalties Earnings Fund is an open-ended royalty belief whose sole function is to obtain royalties from Boston Pizza eating places and distribute them to unitholders within the type of month-to-month distributions. The fund generates income by oblique possession of emblems utilized by Boston Pizza Worldwide Inc. This possession grants the belief a 4% royalty on the gross income generated by the Boston Pizza eating places within the royalty pool.

Moreover, the belief enjoys a 1.5% distribution revenue primarily based on its possession stake, linked as soon as extra to the top-line gross sales of the royalty pool individuals.

For the reason that fund’s inflows rely on every restaurant’s product sales, it’s not impacted by fluctuations in these eating places’ or different intermediaries’ backside strains. Basically, the fund performs no half within the day-to-day working of every restaurant, which interprets to 2 vital benefits.

First, the fund can act as a wonderful inflation hedge, benefiting from elevated income as Boston Pizza eating places increase their costs over time, no matter any impression on every location’s profitability.

Second, the fund’s royalty revenues primarily have an effect on its backside line, with solely minor administrative bills. The fund doesn’t make investments and has zero non-essential bills that would have an effect on its internet revenue and, thus, unitholder distributions.

Boston Pizza reported its fourth-quarter outcomes on February thirteenth, 2026. Franchise gross sales elevated 4.3% for quarter, which continued the corporate’s current efficiency of robust outcomes. Distributable money earnings per share of $0.37 was up from $0.35 cents reported in the identical quarter of final yr.

Earlier in 2025, Boston Pizza reported a good non-cash merchandise associated to the truthful worth of the fund’s funding in BP Canada LP, in different phrases the worth of its royalty stream. We’re excluding that from our view of the agency’s economics and  making our EPS estimate primarily based on the corporate’s distributable money circulation, which provides a stable illustration of the earnings of its underlying eating places and its skill to pay its dividend.

Fourth-quarter gross sales have been surprisingly robust regardless of financial headwinds in Canada, and we expect the corporate can develop earnings
modestly in 2026 as effectively. We anticipate earnings-per-share of $1.12 for the yr, which might be a 4.7% enchancment from 2025.

The fund declared a number of distribution will increase through the yr, with the latest announcement coming in March. The anticipated payout ratio for 2026 is 96%.

Boston Pizza’s robust efficiency in 2025 was underpinned by efficient promotions that helped navigate macroeconomic challenges. The corporate’s administration stays optimistic about continued progress in 2025, specializing in enhancing buyer experiences and supporting franchisees. The fund will keep its technique of leveraging operational excellence and innovation to make sure sustainable long-term progress. We anticipate annual earnings-per-share progress of three.0% by 2031.

Progress Prospects

Resulting from its construction, Boston Pizza Royalty Earnings Fund’s progress prospects are solely decided by two elements. The primary is the variety of franchised eating places in its royalty pool, whereas the opposite is the speed at which same-restaurant gross sales develop.

The variety of eating places has been repeatedly declining since 2018, when the overall variety of Boston Pizza eating places peaked at 396. The declining variety of eating places might be attributed to some areas being unprofitable for franchises and the COVID-19 pandemic, which notably impacted all franchises throughout 2020 and 2021. The variety of areas have been very steady in recent times.

Supply: Investor Relations

Concerning the second issue, Boston Pizza’s same-restaurant gross sales have rebounded considerably following their stoop through the COVID-19 pandemic. A notable issue that would hold boosting same-restaurant gross sales shifting ahead is Boston Pizza’s cheap choices, that are more likely to expertise elevated demand as shoppers go for extra reasonably priced meals throughout an unsure or recessionary atmosphere.

Supply: Investor Relations

Regardless of the declining variety of Boston Pizza eating places, the notable improve in same-store gross sales over the previous few years has led to regular progress.

Supply: Investor Relations

Dividend & Valuation Evaluation

Through the years, Boston Pizza Royalty Earnings Fund has averaged payout ratio of practically 100%, primarily distributing its internet revenue to unitholders, which aligns with its function. In 2025, the fund’s payout ratio was 95%, paying out $1.02 in distributions per unit out of the $1.07 in distributable money per unit.

Buyers shouldn’t anticipate distribution will increase or “cuts,” however they need to anticipate annually’s complete distributions per unit to fluctuate primarily based on the underlying gross sales of Boston Pizza franchisees.

Barring unexpected occasions just like the COVID-19 pandemic, buyers can usually anticipate a steady distribution stage yr over yr. Boston Pizza eating places are likely to generate regular gross sales yearly, and the fund doesn’t incur any non-essential bills that would impression internet revenue and in the end have an effect on the extent of payouts.

As you possibly can see, annual product sales per Boston Pizza location are usually extremely steady below regular circumstances. The notable decline in 2020 and 2021 was because of extreme lockdowns, that are excessive occasions. But, gross sales rapidly normalized as soon as lockdowns ended.

Supply: Investor Relations

Additionally, administration makes an attempt to distribute accessible funds equally every quarter to make sure constant month-to-month payouts.

The present month-to-month distribution of C$0.12 interprets to an annualized price of C$1.44. In U.S. {dollars}, we anticipate dividends per share of ~$1.07 for 2025.

Shares of Boston Pizza Royalty Earnings Fund presently commerce at 16.4x our EPS estimates for the yr. That is above our goal price-to-earnings ratio of 11.0 Reverting to our goal by 2031 would cut back annual returns by 7.7% over this era.

Mixed with our projected EPS progress price of three.0% and the present yield of 5.8%, complete annual returns are forecasted to be 1.9% over the subsequent 5 years.

Ultimate Ideas

Boston Pizza Royalty Earnings Fund is a singular funding automobile. Its frictionless income mannequin and function of distributing everything of its earnings, together with the extremely enticing frequency of its month-to-month payouts, make it a extremely attractive decide for income-oriented buyers.

The dividend yield will not be fully dependable within the sense that extraordinary occasions might have an effect on the revenues of Boston Royalty Franchisees and the fund’s money flows. That mentioned, excluding such extreme occasions, buyers ought to anticipate hefty distribution ranges and, thus, very excessive yields, albeit with minor variations between quarters.

Lastly, we consider the belief might carry out very effectively and proceed to distribute considerably throughout a recession, as shoppers are more likely to favor its reasonably priced menu. This was demonstrated through the Nice Monetary Disaster when the fund’s annual distribution ranges remained rock-solid.

Total, we consider that Boston Pizza Royalty Earnings Fund generally is a becoming decide for revenue buyers in search of substantial yields and an absence of correlation with the broader market’s efficiency. Nonetheless, shares earn a maintain score because of low projected annual returns over the subsequent 5 years.

Don’t miss the assets under for extra month-to-month dividend inventory investing analysis.

And see the assets under for extra compelling funding concepts for dividend progress shares and/or high-yield funding securities.