Pizza Pizza Royalty Income Fund Increases Monthly Distribution by 2%



    TORONTO, June 19 /CNW/ - Today the Pizza Pizza Royalty Income Fund (the
"Fund") announced a 2% increase in its monthly cash distribution. (TSX:
PZA.UN)
    Beginning with the period June 1 to June 30, the distribution per unit
will increase to $0.0775 from $0.076, with the first distribution at this
level payable July 15, 2008 to unitholders of record at the close of business
on June 30, 2008.
    The new, monthly distribution equates to an annualized distribution of
$0.93 per Fund unit or a 16.3% increase over the level at the time of the
Fund's initial public offering in July 2005. This is the sixth distribution
increase since the initial public offering.

    About the Fund

    The Fund is a limited purpose, open-ended trust established under the
laws of Ontario. The Fund, indirectly through the Pizza Pizza Royalty Limited
Partnership (the "Partnership"), has acquired the trademarks and trade names
used by Pizza Pizza Limited ("the Company") in its Pizza Pizza and Pizza 73
restaurants. The Pizza Pizza trademarks were licensed to the Company in 2005
for 99 years, for which the Company pays the Fund a royalty equal to 6% of the
system sales of its Pizza Pizza restaurants in the Royalty Pool. There are 559
Pizza Pizza restaurants in the Royalty Pool for 2008. On July 24, 2007, the
Partnership acquired the trademarks and other intellectual property of Pizza
73 (the "Pizza 73 Rights") and licensed them to the Company for 99 years, for
which the Company pays the Fund a royalty equal to 9% of the system sales of
the 50 Pizza 73 restaurants in the Royalty Pool for 2008. The 2008 Royalty
Pool has 609 total restaurants.
    A key attribute of the Fund is that revenues are based on top-line,
system sales of the Royalty Pool restaurants and not on the profitability of
either the Company or the restaurants in the Royalty Pool. Moreover, the Fund
is not subject to the variability of earnings or expenses of the operating
companies. The Fund's only expenses are administration expenses and the
interest on debt. Thus, the success of the Fund depends primarily on the
ability of Pizza Pizza to maintain and increase system sales of the Royalty
Pool restaurants and to meet its royalty obligations.
    The Fund's trust units are listed on the Toronto Stock Exchange under the
symbol PZA.UN.

    %SEDAR: 00022262EF




For further information:

For further information: Curtis Feltner, Chief Financial Officer, Pizza
Pizza Limited, Telephone: (416) 967-1010, cfeltner@pizzapizza.ca; Christine
D'Sylva, Investor Relations, Pizza Pizza Limited, Telephone: (416) 967-1010,
cdsylva@pizzapizza.ca, Web: www.pizzapizzaroyaltyincomefund.com,
www.pizzapizza.ca and www.pizza73.com or www.sedar.com

Organization Profile

PIZZA PIZZA ROYALTY INCOME FUND

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890