Earnings call transcript: Boston Pizza fund posts record sales in Q2 2026

Boston Pizza Royalties Income Fund disclosed record franchise sales and rising royalty income for the second quarter of 2026 in their earnings call transcript. The fund's royalty income increased by 2.0% to CAD 10.3 million, while distributable cash rose 3.4% to CAD 8.2 million. Net income, however, fell sharply to CAD 5.9 million from CAD 14.3 million a year earlier, primarily due to a larger fair value loss.

This decline in net income, despite strong sales and cash flow, suggests a stable business model with consistent growth. The fund's units were trading at $22.18, up 0.68% from the previous close, indicating stable investor sentiment. Management highlighted several strategies, including playoff marketing, FIFA World Cup campaigns, and partnerships with Live Nation, which helped sustain positive same-restaurant sales and drive record franchise sales.

The company is also in the midst of several restaurant renovations and has three new restaurants set to open soon. Despite geopolitical uncertainties and the potential impact on input costs, the fund's management remains focused on delivering excellent guest experiences, empowering franchisees, and driving sustainable long-term growth.