Summary
Boston Pizza Royalties Income Fund collects about 4% of royalty income from its 391 restaurants across Canada.
Boston Pizza struggled to grow its same store sales in Q2 2018 due to several headwinds.
It may take sometime for these headwinds to dissipate.
The company currently pays an attractive dividend with a dividend yield of 8.1%.
Investment Thesis
Boston Pizza Royalties Income Fund (OTC:BPZZF) (TSX:BPF.UN) continues to struggle with same store sales growth in Q2 2018. Several headwinds such as introduction of sales tax on restaurant food in Saskatchewan, and rising labor costs in several provinces in Canada have impacted its restaurants in different provinces in Canada. The company is now trading at several multiples below its historical valuation. Its 8.1%-yielding dividend is now quite attractive.
Source: Q2 2018 Investor Presentation
