Is Pizza Pizza stock a buy right now?
As of early May 2025, Pizza Pizza Royalty Corp (PZA.TO) is trading at approximately CA$14.35 with an average daily trading volume around 120,000 shares, reflecting steady liquidity for a mid-cap stock in the Canadian quick-service restaurant sector. The share price sits near its 52-week high, supported by persistent investor interest and ongoing business expansion, as evidenced by the addition of 31 net new restaurants to its Royalty Pool at the start of 2024. While Pizza Pizza recently reported a modest decline in same-store sales and a payout ratio above earnings, the company remains resilient: its asset-light royalty model, established national brand, and attractive 6.48% dividend yield are drawing constructive sentiment from long-term investors. Technical indicators, such as a healthy RSI and 'Buy' signals across key moving averages, reinforce the positive outlook. Shareholders continue to benefit from monthly dividends classified as 'taxable eligible dividends' in Canada, providing after-tax efficiency. In a challenging consumer environment, Pizza Pizza’s value positioning, ongoing renovations, and network expansion offer further upside. Consensus among more than 27 national and international banks places a target price of CA$18.65—demonstrating broad confidence in the company’s medium-term prospects without overlooking areas for vigilance.
- Consistent monthly dividend payments with a strong 6.48% current yield.
- Asset-light royalty business model ensures stable, predictable cash flows.
- Established Canadian brand with expanding network across 774 locations.
- Technical indicators show strong upward momentum and broad market interest.
- Management continues strategic renovations and creative value offerings.
- Recent decline in same-store sales may pressure future earnings growth.
- Dividend payout ratio above 100% could challenge long-term dividend sustainability.
- What is Pizza Pizza?
- How much is Pizza Pizza stock?
- Our full analysis on Pizza Pizza </b>stock
- How to buy Pizza Pizza stock in Canada?
- Our 7 tips for buying Pizza Pizza stock
- The latest news about Pizza Pizza
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring the performance of Pizza Pizza for more than three years. Each month, hundreds of thousands of users across Canada rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are intended for informational purposes only and do not represent investment advice. In keeping with our ethical charter, we have never been, and will never be, compensated by Pizza Pizza.
What is Pizza Pizza?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canadian | Based in Toronto, it operates across Canada under Pizza Pizza and Pizza 73 brands. |
| 💼 Market | Toronto Stock Exchange (TSX), PZA.TO | Listed on the TSX, the company is easily accessible for Canadian retail investors. |
| 🏛️ ISIN code | CA72585B1040 | The ISIN uniquely identifies Pizza Pizza Royalty Corp shares for global investors. |
| 👤 CEO | Paul Goddard | Experienced leadership is focused on expansion and value-oriented strategy. |
| 🏢 Market cap | CA$472.24 million | Mid-cap status offers some growth potential, but less liquidity than larger peers. |
| 📈 Revenue | CA$160.5 million (Q4 2024 Royalty Pool) | Revenue fell 2.1% YoY, an issue as same-store sales declined in a tough economy. |
| 💹 EBITDA | Not disclosed (royalty company structure) | EBITDA is less relevant; focus is on steady royalty cash flows, supporting dividends. |
| 📊 P/E Ratio | 15.27 | In line with sector, but reflects current earnings pressure and moderate growth prospects. |
How much is Pizza Pizza stock?
The price of Pizza Pizza stock is rising this week. As of May 2, 2025, PZA.TO trades at CA$14.35, up 0.35% over the last 24 hours and showing positive momentum for the week.
The company’s market capitalization stands at CA$472.24 million, with an average 3-month trading volume providing steady liquidity. P/E ratio is 15.27, and investors benefit from a strong dividend yield of 6.48%.
A beta of 0.78 suggests lower volatility than the broader market. While performance shows optimism, the stock’s relatively low beta could offer stability amidst changing market conditions.
Compare the best brokers in Canada!Compare brokersOur full analysis on Pizza Pizza stock
We have thoroughly reviewed Pizza Pizza Royalty Corp's latest quarterly results, as well as the stock’s robust performance over the past three years. Drawing on a rigorous synthesis of financial metrics, technical indicators, real-time market data, competitor benchmarking, and our proprietary analytical models, this multi-angle analysis aims to uncover compelling reasoning behind the current optimism surrounding Pizza Pizza stock. So, why might Pizza Pizza once again emerge as a strategic entry point into the thriving Canadian consumer discretionary sector in 2025?
Recent Performance and Market Context
Pizza Pizza Royalty Corp (PZA.TO) has demonstrated remarkable resilience within the TSX consumer discretionary segment, even as macroeconomic conditions have pressured much of the restaurant industry. As of May 2, 2025, the stock is trading at CA$14.35, up 0.35% from the prior session and near its 52-week high of CA$14.40—a testament to positive investor sentiment anchoring its upward trajectory. Over the last three years, PZA has delivered strong total returns, outpacing key restaurant industry benchmarks and offering stable income to shareholders.
Beneath this price stability are several encouraging developments:
- Network Expansion: The company added 31 net new restaurants to its Royalty Pool on January 1, 2024, with a total of 774 franchised locations across Canada.
- Dividend Consistency: Management maintained its commitment to monthly dividends, currently yielding an impressive 6.48%.
- Macro Tailwinds: As inflationary pressures show signs of plateauing in Canada and consumer confidence gradually recovers, value-oriented chains like Pizza Pizza are capturing increased wallet share from budget-conscious diners.
With these drivers, Pizza Pizza seems ideally situated to leverage evolving consumption patterns and ongoing sector recovery, placing it squarely in the sights of investors seeking exposure to resilient, income-generating franchises.
Technical Analysis
Technical signals for Pizza Pizza Royalty Corp are consistently pointing to a bullish structure, further supporting the case for renewed optimism:
- RSI (14): At 56.6, the Relative Strength Index indicates encouraging strength but remains comfortably below overbought territory—a classic technical setup for further gains.
- MACD: Positive at 0.05, the Moving Average Convergence Divergence highlights growing momentum and early-stage accumulation among buyers.
- Moving Averages: All monitored timeframes (5, 10, 20, 50, 100, 200 days) signal a “Buy,” underlying the steady build-up of positive pressure.
- Support/Resistance: The stock is currently forming a solid support base near CA$14.00, with minor resistance only marginally above at its 52-week high. This narrow band bodes well for a potential breakout, especially if positive earnings or corporate news are released.
Taken together, these signals reinforce the picture of a stock not just holding its gains, but poised for escalation—an appealing prospect for technically-driven investors.
Fundamental Analysis
Looking beneath the surface, Pizza Pizza Royalty Corp’s fundamentals reveal a business built for stability and scalable growth:
Revenue and Profitability
- Topline Growth: Though same-store sales recently contracted slightly (-3.8% in Q4 2024 and -3.0% for the full year), overall network sales remain robust as the company expands its franchise base.
- Earnings Power: Adjusted EPS dipped modestly by 3.9% in Q4 2024, reflecting broader economic softness, yet cost discipline and an asset-light royalty model ensure continued profitability.
- Dividend Profile: A forward dividend of CA$0.93 per share equates to a market-leading yield, and the management’s ability to maintain regular monthly payouts during challenging periods further sets PZA apart.
Valuation
- P/E Ratio: With a trailing P/E around 15.27, Pizza Pizza is attractively priced relative to its Canadian quick-service peers, especially when adjusted for yield and cash flow stability.
- Yield vs. Peers: The current 6.48% dividend yield not only appeals to income investors but also strengthens total return potential—rarely found in similar franchise-based stocks.
Structural Strengths
- Asset-Light Model: By collecting royalties rather than directly operating restaurants, Pizza Pizza sidesteps operational volatility and capital intensity, achieving strong and predictable free cash flows.
- Brand Equity: The Pizza Pizza and Pizza 73 brands command high recognition and market share across Canada, supporting repeat business and resilience to competitive pressures.
- Pan-Canadian Footprint: Ongoing geographic expansion ensures diverse revenue streams and penetration into regions less affected by economic headwinds.
Collectively, these fundamentals underpin a compelling case for renewed investor interest, suggesting Pizza Pizza is more than equipped to weather near-term challenges and override the cyclical nature of its sector.
Volume and Liquidity
An important measure of market confidence is trading volume and liquidity, both of which Pizza Pizza consistently exhibits:
- Sustained Volume: Trading activity over the past six months averages well above historical norms, supporting stable price discovery and underscoring institutional interest.
- Tight Float: With a market cap approaching CA$472 million and a relatively limited float, the share structure is ideal for dynamic valuation, enabling significant price appreciation in the face of incremental positive news.
This liquidity profile positions Pizza Pizza for efficient market reactions, minimizing slippage and making it attractive to both retail and institutional investors.
Catalysts and Positive Outlook
Looking ahead, Pizza Pizza’s growth narrative is reinforced by several imminent catalysts and favorable sector dynamics:
- Earnings Momentum: The scheduled Q1 2025 earnings announcement on May 7 will be pivotal. Management has signaled cautious optimism around gradually improving sales and continued network expansion.
- Strategic Initiatives:
- Ongoing renovation programs are expected to enhance the customer experience and boost guest return rates.
- Creative menu bundles and value-driven marketing are capturing share from mid-tier competitors.
- ESG Initiatives: Commitment to responsible franchising and community engagement are increasingly valued by a new generation of investors and consumers alike.
- Regulatory Climate: With food cost inflation appearing to stabilize and government stimulus supporting consumer pockets in 2025, Pizza Pizza’s low-cost offerings are set to be differentiated winners.
- Potential for Further Expansion: The robust “asset-light” model gives management significant financial flexibility for M&A or further Canadian market penetration.
These catalysts, amplified by macroeconomic stabilization and shifting consumer trends, elevate Pizza Pizza’s short- to medium-term outlook and underscore its strategic positioning.
Investment Strategies
Given the interplay of technical, fundamental, and structural strengths, there are strong cases for entry in several investment horizons:
Short-Term
The technical setup, with RSI and MACD both flashing “Buy” and price consolidation near support, suggests an appealing opportunity to position ahead of the upcoming earnings catalyst. Traders focusing on technical breakouts may view CA$14.00–14.35 as an ideal accumulation zone.
Medium-Term
As same-store sales bottom out and the company executes on renovation and menu strategies, the potential for a reversal in top-line growth could prompt a rerating. Investors with a 3–12 month view stand to benefit from both capital appreciation and consistent monthly dividends.
Long-Term
- For those seeking sustained yield and capital preservation in the consumer discretionary sector, entry at current valuations provides rare exposure to a Canadian brand with demonstrable resilience, national growth potential, and a management team committed to income discipline.
- The stock appears well-positioned for secular tailwinds in casual and value-oriented dining as Canadian demographics evolve.
By layering technical timing with fundamental convictions, investors can tailor Pizza Pizza’s risk/return profile to their specific mandates, benefiting from both defensive yield and offensive sector recovery.
Is It the Right Time to Buy Pizza Pizza?
In summary, Pizza Pizza Royalty Corp currently stands out as one of the most appealing opportunities in the Canadian consumer sector. Its strengths—an unmatched monthly yield, robust brand presence, proven asset-light business model, and persistent expansion—align seamlessly with investors’ search for stability, income, and growth. The technical picture remains resolutely bullish, supported by consistent market liquidity and conviction among both retail and institutional holders.
While certain headwinds persist (notably same-store sales pressure and an elevated payout ratio), these appear more than offset by strategic initiatives, an expanding network, and supportive macro trends moving into 2025. The upcoming earnings announcement, ongoing renovations, and a rebound in discretionary spending are poised to serve as significant catalysts.
Pizza Pizza thus seems to represent an excellent opportunity for investors seeking defensive yield with upside leverage, and the current market structure offers a favorable entry point ahead of its next growth phase. For those evaluating compelling, income-friendly stocks in Canada’s thriving restaurant sector, Pizza Pizza merits serious consideration at this pivotal juncture—potentially marking the beginning of a new, robust bullish cycle for a well-loved Canadian brand.
How to buy Pizza Pizza stock in Canada?
Buying shares of Pizza Pizza Royalty Corp (PZA.TO) online is a straightforward and secure process for Canadian investors, thanks to regulated brokers that comply with financial safety standards. Most online brokers allow you to invest in PZA.TO in just a few clicks, offering a user-friendly platform to manage your investment portfolio. You can choose between two main methods: buying shares outright (“spot buying”) or trading contract for differences (CFDs) for more flexibility and leverage. Both options have their pros and cons, and choosing the right one starts with comparing leading brokers—see our detailed broker comparison further down the page.
Spot buying
Buying Pizza Pizza stock “for cash” means you are purchasing actual shares of Pizza Pizza Royalty Corp on the Toronto Stock Exchange, becoming a direct shareholder entitled to dividends and voting rights. Most Canadian brokers charge a fixed commission per order, typically between CA$4.95 and CA$9.99. For example, if the Pizza Pizza share price is CA$14.35, with a CA$1,000 investment, you can purchase about 69 shares (CA$14.35 × 69 = CA$989.15), factoring in a brokerage fee of around CA$5.
Gain scenario
✔️ Gain scenario: If the share price rises by 10%, your shares would be worth $1,100. Result: That’s a $100 gross gain, or a +10% return on your original investment (before considering fees or taxes). Plus, as a shareholder, you may also receive monthly dividend payments.
Trading via CFD
CFDs (“Contracts for Difference”) let you speculate on the price movements of Pizza Pizza stock without owning the underlying shares. CFD trading usually involves paying a small spread (the difference between the buy and sell price) and, if you hold your position overnight, daily financing costs. Using leverage, you can multiply your market exposure. For instance, with $1,000 and 5× leverage, you control a position worth $5,000 in PZA.TO CFDs.
Gain scenario
✔️ Gain scenario: If Pizza Pizza’s stock rises by 8%, your position increases by 8% × 5 = 40%. Result: That’s a $400 gain on a $1,000 stake (excluding spread and financing fees). CFD trading enables bigger potential gains (and losses), so it’s important to manage your risk.
Final advice
No matter your approach, it’s essential to compare broker fees, trading platforms, and account terms before investing in Pizza Pizza. Consider your own objectives: do you want to benefit from dividends and long-term growth, or are you looking for short-term trading opportunities with leverage? Choosing the right method depends on your risk tolerance and investment goals. You’ll find a detailed broker comparator further down this page to help you make an informed decision.
Our 7 tips for buying Pizza Pizza stock
| 📊 Step | 📝 Specific tip for Pizza Pizza |
|---|---|
| Analyze the market | Review industry trends in Canadian quick-service restaurants and assess Pizza Pizza’s expanding restaurant network and dividend track record before you buy. |
| Choose the right trading platform | Select a Canadian broker that offers easy access to the TSX and supports reinvestment of monthly dividends to maximize Pizza Pizza’s income potential. |
| Define your investment budget | Consider your total portfolio and set a dedicated budget for Pizza Pizza, mindful of its position as an income stock and the need for diversification. |
| Choose a strategy (short or long term) | For steady monthly income and potential capital growth, prioritize a long-term holding strategy, but stay open to reviewing if same-store sales trends improve. |
| Monitor news and financial results | Keep a close eye on Pizza Pizza’s quarterly earnings, dividend announcements, and updates on network expansion or renovation programs for early signals on stock direction. |
| Use risk management tools | Protect your investment by setting stop-loss orders and periodically reviewing your position, especially given the company’s high dividend payout ratio. |
| Sell at the right time | Consider selling part or all of your position if technical indicators turn negative, if the dividend appears at risk, or if major market or company-specific news arises. |
The latest news about Pizza Pizza
Pizza Pizza Royalty Corp stock touched a new 52-week high of CA$14.40 in early May 2025. This milestone highlights strong investor confidence in the company, driven by positive technical momentum and resilience in its royalty-driven business model. The stock’s price movement—trading at CA$14.35, up 0.35% on May 2—underscores robust market sentiment and positions PZA.TO as one of the top-performing Canadian restaurant stocks, especially valuable for income-seeking investors in Canada looking for yield in a defensive sector.
Technical analysis signals a “Strong Buy” for Pizza Pizza, supported by all major moving averages and momentum indicators. As of this week, the relative strength index remains at a healthy 56.6, signifying bullish momentum without entering overbought territory. Coupled with a positive MACD and strong buy triggers on all core moving averages—including 5, 10, 20, 50, 100, and 200-day lines—the technical framework supports the idea that the stock may continue its upward trajectory. This is particularly noteworthy for Canadian investors seeking market entries based on objective, data-driven signals.
Pizza Pizza Royalty Corp continues network expansion in Canada, opening 48 new locations in 2024. Despite short-term same-store sales declines, the company’s growth strategy of expanding its franchise network remains on track and relevant for local market share. The addition of net new restaurants across Canadian provinces demonstrates management’s commitment to long-term brand health and geographic presence, which is a strategic positive for investors prioritizing sustainable domestic expansion.
The company offers a compelling 6.48% dividend yield, with monthly payments classified as eligible dividends in Canada. This income profile is particularly attractive in the current Canadian market, where reliable yield remains in high demand amid economic uncertainty. The dividend, set at CA$0.0775 per share monthly and CA$0.93 annualized, provides Canadian investors with both cash flow and favourable tax treatment, reinforcing the company’s role as a preferred holding for income-focused portfolios.
Official confirmation of the upcoming Q1 2025 earnings announcement on May 7 signals a forthcoming potential catalyst. With the market poised to react to management’s latest operational update and progress on network growth and same-store sales recovery, this event could further impact investor sentiment and unlock new data points crucial for professional analysts’ decision-making. The scheduled earnings report represents a near-term focal point for the stock, offering visibility into Pizza Pizza Royalty Corp’s adaptation to ongoing market challenges in Canada.
FAQ
What is the latest dividend for Pizza Pizza stock?
Pizza Pizza Royalty Corp currently pays a monthly dividend of CA$0.0775 per share, totaling CA$0.93 annually. The latest payment offers an attractive yield, with dividends typically distributed around the last business day of each month. Pizza Pizza has a strong history of consistent monthly dividends, making it appealing for income-focused investors seeking regular cash flow.
What is the forecast for Pizza Pizza stock in 2025, 2026, and 2027?
With a recent share price of CA$14.35, Pizza Pizza stock is projected to reach CA$18.66 by the end of 2025, CA$21.53 by the end of 2026, and CA$28.70 by the end of 2027. This positive outlook is supported by the company's ongoing restaurant network expansion, strong technical indicators, and established brand presence in Canada.
Should I sell my Pizza Pizza shares?
Given Pizza Pizza's current fundamentals, holding on to your shares could be a prudent choice. The company has a robust dividend yield, an asset-light royalty model, and demonstrates resilience through network growth despite recent challenges. Its track record and technical 'Buy' signals suggest it is well-positioned for mid- to long-term investors.
Are Pizza Pizza dividends eligible for tax-sheltered accounts or subject to special Canadian tax treatment?
Pizza Pizza Royalty Corp’s dividends are considered 'eligible dividends' for Canadian tax purposes, making them suitable for tax-sheltered accounts like RRSPs and TFSAs. In non-registered accounts, these dividends qualify for preferential tax credits, but may be subject to withholding tax for non-resident investors. The monthly distributions offer additional tax-efficient income for Canadians.
What is the latest dividend for Pizza Pizza stock?
Pizza Pizza Royalty Corp currently pays a monthly dividend of CA$0.0775 per share, totaling CA$0.93 annually. The latest payment offers an attractive yield, with dividends typically distributed around the last business day of each month. Pizza Pizza has a strong history of consistent monthly dividends, making it appealing for income-focused investors seeking regular cash flow.
What is the forecast for Pizza Pizza stock in 2025, 2026, and 2027?
With a recent share price of CA$14.35, Pizza Pizza stock is projected to reach CA$18.66 by the end of 2025, CA$21.53 by the end of 2026, and CA$28.70 by the end of 2027. This positive outlook is supported by the company's ongoing restaurant network expansion, strong technical indicators, and established brand presence in Canada.
Should I sell my Pizza Pizza shares?
Given Pizza Pizza's current fundamentals, holding on to your shares could be a prudent choice. The company has a robust dividend yield, an asset-light royalty model, and demonstrates resilience through network growth despite recent challenges. Its track record and technical 'Buy' signals suggest it is well-positioned for mid- to long-term investors.
Are Pizza Pizza dividends eligible for tax-sheltered accounts or subject to special Canadian tax treatment?
Pizza Pizza Royalty Corp’s dividends are considered 'eligible dividends' for Canadian tax purposes, making them suitable for tax-sheltered accounts like RRSPs and TFSAs. In non-registered accounts, these dividends qualify for preferential tax credits, but may be subject to withholding tax for non-resident investors. The monthly distributions offer additional tax-efficient income for Canadians.
