Boston Pizza Serves Up Record Sales Amidst Economic Headwinds

VANCOUVER, BC – February 13, 2026

By Michelle Bell

Boston Pizza Royalties Income Fund (TSX: BPF.UN) announced a record-setting performance for 2025, achieving its highest-ever annual franchise sales of $976.3 million. The robust results, detailed in its fourth-quarter and annual report, demonstrate remarkable resilience in a year that saw the broader Canadian restaurant industry grapple with persistent inflation, rising costs, and shaky consumer confidence.

The casual dining giant reported a 4.8% increase in annual franchise sales and a significant 4.7% growth in Same Restaurant Sales (SRS), a key metric indicating the performance of established locations. This performance stands in stark contrast to the 0.9% SRS growth seen in 2024 and signals strong momentum for the brand. The positive results allowed the Fund to increase its monthly unitholder distributions twice during the year and issue a special cash distribution at year-end, rewarding investors for the strong performance.

"Boston Pizza delivered strong fourth quarter results to conclude a record setting year, with our restaurants achieving the highest annual franchise sales in the brand's history," said Jordan Holm, President of Boston Pizza International Inc. (BPI). "Strategic promotions and disciplined execution helped us successfully navigate macroeconomic challenges throughout the year while driving record-breaking performance."

A Recipe for Resilience

Boston Pizza's success in 2025 came as many competitors struggled. The Canadian restaurant sector faced a difficult operating environment, with data from November 2025 showing that 44% of restaurants nationwide were operating at a loss or just breaking even, a dramatic increase from 12% in 2019. Consumers, feeling the pinch of a higher cost of living, became more selective, with 75% reporting they were dining out less frequently.

Against this backdrop, Boston Pizza's strategy proved highly effective. The company attributed its growth to several key factors, including the continued momentum of its take-out and delivery services, which have become a cornerstone of the business. These off-premise sales now account for approximately 25% of annual revenue, tapping into a durable consumer trend toward convenience that has outlasted the pandemic-era dining shifts.

Furthermore, the company's promotional calendar was a significant driver of traffic. Targeted campaigns, such as a month-long Pasta Tuesday promotion and partnerships tied to major sporting events like the NFL and NHL playoffs, successfully drew customers in. This focus on value and event-based dining helped the brand capture consumer spending in a market where customers were increasingly seeking a compelling reason to open their wallets.

Outperforming the Competition

Boston Pizza's performance is even more striking when compared to its peers. For instance, MTY Food Group Inc., another major Canadian restaurant operator with a diverse portfolio, reported same-store sales declines for most of 2025, including a 1.9% drop in the second quarter and a 1.6% decline in the third. Boston Pizza's positive 4.7% SRS growth for the year suggests its brand and strategies resonated more effectively with Canadian diners.

This outperformance was achieved despite significant external pressures, including heightened Canada-U.S. trade tensions that began in early 2025. The resulting tariffs contributed to food cost inflation across the industry, with over half of Canadian restaurant operators reporting they spent significantly more on food costs compared to the previous year. While Boston Pizza acknowledged these macroeconomic risks, its outlook noted that its supply chain is well-positioned, with the vast majority of raw materials sourced from within Canada, partially insulating it from the direct impact of cross-border tariffs.

Rewarding Investors with a Slice of the Profits

The Fund's strong operational results translated directly into higher returns for its unitholders. Distributable Cash, the cash available to be paid out to investors, increased by 4.1% for the year to $31.6 million. This enabled the Fund to not only increase its regular monthly distribution to $0.120 per unit but also to pay a special distribution of $0.110 per unit on December 31, 2025.

For the full year, the Fund's Payout Ratio—the percentage of Distributable Cash paid out to unitholders—was 101.9%. While a ratio over 100% can sometimes signal an unsustainable dividend, the company noted that excluding the one-time special distribution, the ratio would have been a more conservative and sustainable 94.5%. With a cash balance of $3.9 million at year-end and a long history of 277 monthly distributions, the Fund's actions reflect confidence in its continued financial health.

Looking ahead, the company is not resting on its laurels. Management has signaled a continued focus on driving growth through strategic investments in the brand. This includes an aggressive restaurant renovation program that saw over 40 locations receive complete overhauls in 2025, featuring updated interiors and enhanced audio-visual systems for its popular sports bars. These investments, largely funded by franchisees, indicate a shared belief in the brand's future and a commitment to enhancing the guest experience to maintain its competitive edge.