BOSTON PIZZA ROYALTIES INCOME FUND ANNOUNCES 2025 SECOND QUARTER RESULTS AND 4.3% INCREASE TO MONTHLY CASH DISTRIBUTIONS TO UNITHOLDERS

Toronto Stock Exchange: BPF.UN

HIGHLIGHTS

• Franchise Sales¹ of $251.8 million for the Period and $483.0 million YTD, representing an increase of 6.3% and 5.3%, respectively, versus the same periods one year ago.
• Same Restaurant Sales² of 6.4% for the Period and 5.5% YTD.
• Cash flows generated from operating activities of $9.9 million for the Period and $19.2 million YTD, representing increases of 3.4% and 2.6%, respectively, versus the same periods one year ago.
• Distributable Cash³ increased 6.1% for the Period and 3.1% YTD, and Distributable Cash per Unit⁴ increased 6.3% for the Period and 3.2% YTD.
• Payout Ratio⁵ of 92.3% for the Period, 96.1% YTD and 99.6% on a trailing 12-month basis. Cash balance at the end of the Period was $5.3 million.
• On August 13, 2025, the trustees of the Fund declared a distribution for the period of July 1, 2025 to July 31, 2025 of $0.120 per Unit, which is payable on August 29, 2025 to unitholders of the Fund ("Unitholders") of record on August 21, 2025. This is an increase of $0.005 per Unit, or 4.3%, from the previous monthly distribution rate of $0.115 per Unit.  On an annualized basis, the new monthly distribution rate equates to $1.440 per Unit compared to $1.380 per Unit for the previous monthly distribution rate.

VANCOUVER, BC, Aug. 14, 2025 /CNW/ - Boston Pizza Royalties Income Fund (the "Fund") and Boston Pizza International Inc. ("BPI") reported financial results today for the second quarter period from April 1, 2025 to June 30, 2025 (the "Period") and January 1, 2025 to June 30, 2025 ("YTD").  A copy of this press release, the unaudited condensed consolidated interim financial statements and related management's discussion and analysis ("MD&A") of the Fund and BPI are available at www.sedarplus.ca and www.bpincomefund.com.  The Fund will host a conference call to discuss the results on August 14, 2025 at 8:30 am Pacific Time (11:30 am Eastern Time).  The call can be accessed by dialling 1-833-821-3078 or [phone].  A replay will be available until September 14, 2025 by dialling 1-855-669-9658 or [phone] and entering the access code: 3010624 followed by the # sign.  The replay will also be available at www.bpincomefund.com.  Capitalized terms used in this press release that are not otherwise defined have the meanings ascribed to them in the Fund's MD&A for the Period and YTD.

"We are pleased to announce a 4.3% increase in the monthly cash distribution rate to a new rate of $0.120 per Unit, the highest level ever in the history of the Fund", said Marc Guay, Chair of the Board of Trustees.  "The strong continued financial performance of the Boston Pizza system, along with the Fund's growing cash balance, have enabled the trustees of the Fund to increase the monthly distribution rate payable to Unitholders.  While we are encouraged by recent business performance, given the ongoing economic uncertainty, the trustees of the Fund remain cautious and will continue to closely monitor the Fund's available cash balances and distribution levels, based on our goal of stable and sustainable distribution flow to Unitholders."

PERIOD RESULTS

SRS, a key driver of distribution growth for Unitholders, was 6.4% for the Period compared to 1.7% reported in the second quarter of 2024.  SRS was 5.5% YTD compared to 0.4% reported year-to-date in 2024.  SRS for the Period and YTD was principally due to effective promotional initiatives, continued momentum in take-out and delivery, and favourable comparisons to a softer performance in the same period in the prior year.

Franchise Sales of Boston Pizza restaurants in the Royalty Pool were $251.8 million for the Period compared to $236.8 million for the second quarter of 2024.  The $15.0 million increase in Franchise Sales for the Period was primarily due to positive SRS. Franchise Sales of Boston Pizza restaurants in the Royalty Pool were $483.0 million YTD compared to $458.8 million year-to-date in 2024.  The $24.2 million increase in Franchise Sales YTD was primarily due to positive SRS.

The Fund's net and comprehensive income was $14.3 million for the Period compared to $7.5 million for the second quarter of 2024.  The $6.8 million increase in the Fund's net and comprehensive income for the Period compared to the second quarter of 2024 was primarily due to a $7.9 million increase in fair value gain, a $0.8 million increase in Royalty Income⁶ and Distribution Income⁷ and a $0.1 million decrease in interest expense on debt and financing fees, partially offset by a $2.0 million increase in current and deferred income tax expense.  The Fund's net and comprehensive income was $20.7 million YTD compared to $15.9 million year-to-date in 2024.  The $4.8 million increase in the Fund's net and comprehensive income YTD compared to the same period in 2024 was primarily due to a $4.8 million increase in fair value gain, a $1.3 million increase in Royalty Income and Distribution Income, a $0.1 million decrease in administrative expenses and a $0.1 million decrease in interest expense on debt and financing fees, partially offset by a $1.5 million increase in current and deferred income tax expense.

Cash generated from operating activities for the Period was $9.9 million compared to $9.6 million in the second quarter of 2024.  The increase of $0.3 million was primarily due to an increase in Royalty Income and Distribution Income of $0.8 million, partially offset by an increase in income taxes paid of $0.4 million and a decrease in changes in working capital of $0.1 million.  Cash generated from operating activities YTD was $19.2 million compared to $18.7 million in the same period in 2024.  The increase of $0.5 million was primarily due to an increase in Royalty Income and Distribution Income of $1.3 million, partially offset by an increase in income taxes paid of $0.4 million and a decrease in changes in working capital of $0.4 million.

The Fund generated Distributable Cash of $8.0 million for the Period compared to $7.5 million for the second quarter of 2024.  The increase in Distributable Cash of $0.5 million or 6.1% was primarily due to an increase in cash flows generated from operating activities of $0.3 million, SIFT Tax on Units³ adjustment of $0.2 million and lower interest paid on debt of $0.1 million, partially offset by an increase in Class B Unit entitlement of $0.1 million.  The Fund generated Distributable Cash of $15.3 million YTD compared to $14.8 million for the same period in 2024.  The increase in Distributable Cash of $0.5 million or 3.1% was primarily due to an increase in cash generated from operating activities of $0.5 million.

The Fund generated Distributable Cash per Unit of $0.374 for the Period and $0.718 YTD compared to $0.352 per Unit and $0.696 per Unit, respectively, for the same periods in 2024.  The increase in Distributable Cash per Unit of $0.022 or 6.3% for the Period and $0.022 or 3.2% YTD was primarily attributable to the increase in Distributable Cash outlined above.

The Fund's Payout Ratio for the Period was 92.3% compared to 96.2% in the second quarter of 2024.  The decrease in the Fund's Payout Ratio for the Period was due to Distributable Cash increasing by $0.5 million or 6.1%, partially offset by distributions paid increasing by $0.1 million or 1.8%.  The Fund's Payout Ratio YTD was 96.1% compared to 96.5% year-to-date in 2024.  The decrease in the Fund's Payout Ratio YTD was due to Distributable Cash increasing by $0.5 million or 3.1%, partially offset by distributions paid increasing by $0.4 million or 2.7%.  Payout Ratio is calculated by dividing the amount of distributions paid during the applicable period by the Distributable Cash for that period.  The Fund's Payout Ratio fluctuates quarter-to-quarter depending upon the amount of distributions paid during a quarter and the amount of Distributable Cash generated during that quarter.  On a trailing 12-month basis, the Fund's Payout Ratio was 99.6% as at June 30, 2025.

DISTRIBUTIONS

During the Period, the Fund declared distributions on the Units in the aggregate amount of $7.3 million or $0.345 per Unit.  During the second quarter of 2024, the Fund declared distributions on the Units in the aggregate amount of $7.2 million or $0.339 per Unit. During the Period, the Fund paid distributions on the Units in the aggregate amount of $7.3 million or $0.345 per Unit.  During the second quarter of 2024, the Fund paid distributions on the Units in the aggregate amount of $7.2 million or $0.339 per Unit.  The amount of distributions declared and paid during the Period increased by $0.1 million or $0.006 per Unit due to the monthly distribution rate increasing from $0.113 per Unit to $0.115 per Unit commencing with the November 2024 distribution (the "November 2024 Distribution Increase").  YTD, the Fund declared distributions on the Units in the aggregate amount of $12.2 million or $0.575 per Unit.  During the same period in 2024, the Fund declared distributions on the Units in the aggregate amount of $12.0 million or $0.565 per Unit. YTD, the Fund paid distributions on the Units in the aggregate amount of $14.7 million or $0.690 per Unit.  During the same period in 2024, the Fund paid distributions on the Units in the aggregate amount of $14.3 million or $0.672 per Unit.  The amount of distributions declared YTD increased by $0.2 million or $0.010 per Unit due to the November 2024 Distribution Increase.  The amount of distributions paid YTD increased by $0.4 million or $0.018 per Unit due to an increase to the monthly distribution rate from $0.107 to $0.113 per Unit commencing with the January 2024 distribution and the November 2024 Distribution Increase.

On August 13, 2025, the trustees of the Fund declared a distribution for the period of July 1, 2025 to July 31, 2025 of $0.120 per Unit, which will be payable on August 29, 2025 to Unitholders of record on August 21, 2025.  This is an increase of $0.005 per Unit, or 4.3%, from the previous monthly distribution rate of $0.115 per Unit.  On an annualized basis, the new monthly distribution rate equates to $1.440 per Unit compared to $1.380 per Unit for the previous monthly distribution rate.  Including the July 2025 distribution, which will be paid on August 29, 2025, the Fund will have paid out total distributions of $470.5 million or $28.26 per Unit, which includes 271 monthly distributions and three special distributions.

FINANCIAL SUMMARY

The tables below set out selected information from the Fund's unaudited condensed consolidated interim financial statements together with other data and should be read in conjunction with the unaudited condensed consolidated interim financial statements and MD&A of the Fund for the three-month and six-month periods ended June 30, 2025 and June 30, 2024, and the Fund's audited annual consolidated financial statements for the year-ended December 31, 2024.

For the periods ended June 30	Q2 2025	Q2 2024		YTD 2025	YTD 2024
(in thousands of dollars – except restaurants, SRS, Payout Ratio and per Unit items)
Number of restaurants in Royalty Pool	372	372		372	372
Franchise Sales reported by restaurants in the Royalty Pool	251,812	236,792		482,954	458,824
Royalty Income	10,072	9,472		19,318	18,353
Distribution Income	3,306	3,111		6,342	6,030
Total revenue	13,378	12,583		25,660	24,383
Administrative expenses	(412)	(497)		(821)	(933)
Interest expense on debt and financing fees	(833)	(932)		(1,667)	(1,760)
Interest expense on Class B Unit liability	(1,046)	(1,063)		(1,776)	(1,792)
Interest income	37	69		84	135
Profit before fair value gain and income taxes	11,124	10,160		21,480	20,033
Fair value gain on investment in BP Canada LP	14,294	1,473		12,384	3,601
Fair value loss on Class B Unit liability	(6,369)	(656)		(5,518)	(1,604)
Fair value gain (loss) on Swaps	94	(672)		(609)	(484)
Current and deferred income tax expense	(4,825)	(2,841)		(7,072)	(5,615)
Net and comprehensive income	14,318	7,464		20,665	15,931
Basic earnings per Unit	0.67	0.35		0.97	0.75
Diluted earnings per Unit	0.67	0.33		0.97	0.74
Distributable Cash / Distributions / Payout Ratio
Cash flows generated from operating activities	9,939	9,613		19,204	18,713
BPI Class B Unit entitlement^8	(1,171)	(1,095)		(2,247)	(2,167)
Interest paid on debt	(818)	(871)		(1,648)	(1,679)
Current income tax expense	(2,769)	(2,521)		(5,275)	(4,886)
Current income tax paid	2,770	2,370		5,243	4,832
Distributable Cash	7,951	7,496		15,277	14,813
Distributions paid	7,341	7,213		14,682	14,299
Payout Ratio	92.3 %	96.2 %		96.1 %	96.5 %
Distributable Cash per Unit	0.374	0.352		0.718	0.696
Distributions paid per Unit	0.345	0.339		0.690	0.672
Other
Same Restaurant Sales	6.4 %	1.7 %		5.5 %	0.4 %
Number of restaurants opened	0	1		0	2
Number of restaurants closed	0	0		0	3
			Jun 30, 2025		Dec 31, 2024
Total assets				435,949	422,888
Total liabilities				147,296	142,665

SUMMARY OF QUARTERLY RESULTS

	Q2 2025	Q1 2025	Q4 2024	Q3 2024
(in thousands of dollars – except restaurants, SRS, Payout Ratio and per Unit items)
Number of restaurants in Royalty Pool	372	372	372	372
Franchise Sales reported by restaurants in the Royalty Pool	251,812	231,142	234,215	238,613
Royalty Income	10,072	9,246	9,369	9,544
Distribution Income	3,306	3,036	3,077	3,135
Total revenue	13,378	12,282	12,446	12,679
Administrative expenses	(412)	(409)	(401)	(379)
Interest expense on debt and financing fees	(833)	(834)	(870)	(887)
Interest expense on Class B Unit liability	(1,046)	(730)	(1,681)	(1,033)
Interest income	37	47	68	71
Profit before fair value gain (loss) and income taxes	11,124	10,356	9,562	10,451
Fair value gain (loss) on investment in BP Canada LP	14,294	(1,910)	(382)	8,511
Fair value (loss) gain on Class B Unit liability	(6,369)	851	170	(3,792)
Fair value gain (loss) on Swaps	94	(703)	(200)	(1,923)
Current and deferred income tax expense	(4,825)	(2,247)	(2,593)	(3,863)
Net and comprehensive income	14,318	6,347	6,557	9,384
Basic earnings per Unit	0.67	0.30	0.31	0.44
Diluted earnings per Unit	0.67	0.21	0.28	0.44
Distributable Cash / Distributions / Payout Ratio
Cash flows generated from operating activities	9,939	9,265	9,419	9,990
BPI Class B Unit entitlement	(1,171)	(1,076)	(1,097)	(1,195)
Interest paid on debt	(818)	(830)	(840)	(758)
Current income tax expense	(2,769)	(2,506)	(2,523)	(2,584)
Current income tax paid	2,770	2,473	2,520	2,660
Distributable Cash	7,951	7,326	7,479	8,113
Distributions paid	7,341	7,341	8,852	7,214
Payout Ratio	92.3 %	100.2 %	118.4 %	88.9 %
Distributable Cash per Unit	0.374	0.344	0.351	0.381
Distributions paid per Unit	0.345	0.345	0.416	0.339
Other
Same Restaurant Sales	6.4 %	4.4 %	3.4 %	(0.6 %)
Number of restaurants opened	0	0	2	0
Number of restaurants closed	0	0	0	1

SUMMARY OF QUARTERLY RESULTS (continued)

	Q2 2024	Q1 2024	Q4 2023	Q3 2023
(in thousands of dollars – except restaurants, SRS, Payout Ratio and per Unit items)
Number of restaurants in Royalty Pool	372	372	377	377
Franchise Sales reported by restaurants in the Royalty Pool	236,792	222,032	227,665	240,139
Royalty Income	9,472	8,881	9,106	9,606
Distribution Income	3,111	2,919	2,992	3,155
Total revenue	12,583	11,800	12,098	12,761
Administrative expenses	(497)	(436)	(347)	(350)
Interest expense on debt and financing fees	(932)	(828)	(839)	(838)
Interest expense on Class B Unit liability	(1,063)	(729)	(1,321)	(1,055)
Interest income	69	66	57	72
Profit before fair value gain (loss) and income taxes	10,160	9,873	9,648	10,590
Fair value gain (loss) on investment in BP Canada LP	1,473	2,128	928	(7,857)
Fair value (loss) gain on Class B Unit liability	(656)	(948)	(414)	3,501
Fair value (loss) gain on Swaps	(672)	188	(2,250)	333
Current and deferred income tax expense	(2,841)	(2,774)	(2,695)	(1,673)
Net and comprehensive income	7,464	8,467	5,217	4,894
Basic earnings per Unit	0.35	0.40	0.25	0.23
Diluted earnings per Unit	0.33	0.37	0.24	0.06
Distributable Cash / Distributions / Payout Ratio
Cash flows generated from operating activities	9,613	9,100	9,288	9,659
BPI Class B Unit entitlement	(1,095)	(1,072)	(1,081)	(740)
Interest paid on debt	(871)	(808)	(817)	(825)
Current income tax expense	(2,521)	(2,365)	(2,445)	(2,603)
Current income tax paid	2,370	2,462	2,424	2,770
Distributable Cash	7,496	7,317	7,369	8,261
Distributions paid	7,213	7,086	6,830	6,848
Payout Ratio	96.2 %	96.8 %	92.7 %	82.9 %
Distributable Cash per Unit	0.352	0.344	0.346	0.387
Distributions paid per Unit	0.339	0.333	0.321	0.321
Other
Same Restaurant Sales	1.7 %	(1.0 %)	0.6 %	5.3 %
Number of restaurants opened	1	1	1	0
Number of restaurants closed	0	3	4	0

SHORT-TERM OUTLOOK

The success of the Fund, BPI, Boston Pizza Canada Limited Partnership ("BP Canada LP"), and Boston Pizza restaurants, including the amount of Franchise Sales, Royalty Income, Distribution Income, and Distributable Cash available for distribution to Unitholders, depends on both consumer demand and restaurant-level operations.  Consumer demand is driven by consumer confidence and discretionary spending, both of which are influenced by macroeconomic factors such as inflation and interest rates, wage growth and unemployment levels, recession risks, competition within the restaurant industry, evolving consumer preferences, changes in taxation and major geopolitical developments, including tariffs.  At the restaurant level, success is also impacted by supply chain disruptions, labor availability, rising input costs, and other operational challenges.

The heightened trade tensions between Canada and the United States of America, including the imposition of tariffs and counter-tariffs, have created uncertainty and concern for Canada's macroeconomic outlook.  The effects of these heightened trade tensions and associated uncertainty have the potential to increase input costs and decrease availability of goods for Boston Pizza restaurants, together with dampening consumer demand, confidence, and discretionary spending, and increasing unemployment rates.  These dynamics can contribute to broader economic contractions or recessionary conditions that directly adversely affect the performance of consumer-facing industries like casual dining.

However, as noted above, Boston Pizza's supply chain is currently well positioned to weather the volatility caused by trade tensions and threats of tariffs and counter-tariffs as the overwhelming majority of raw materials purchased by Boston Pizza restaurants in the day-to-day operation of their businesses are sourced within Canada and not subject to counter-tariffs.  In addition, the trade tensions with the United States of America have resulted in Canadian consumers spending less on travel to the United States of America and more on supporting Canadian brands like Boston Pizza.  Conversely, any degradation of consumer demand, confidence or discretionary spending, or increases in unemployment rates and recessionary fears may result in reduced guest visitation, average guest cheque amounts, Franchise Sales, Royalty Income, Distribution Income, the Fund's Distributable Cash available for distribution to Unitholders, and profitability of Boston Pizza restaurants, all of which would increase the risk of Boston Pizza restaurants closing.

Despite these obstacles, Boston Pizza restaurants have consistently generated strong Franchise Sales by providing guests with appealing dining options that emphasize quality, value, and convenience, both on-premise and off-premise.  BPI, BP Canada LP, and Boston Pizza restaurants have demonstrated adaptability in navigating changing economic conditions and challenging operating environments.  BPI's management remains proactive and committed to adjusting its business strategy to effectively address these challenges and sustain positive sales momentum in 2025.

The trustees of the Fund will continue to closely monitor the Fund's available cash balances and distribution levels to maintain a stable and sustainable return for the Unitholders.

BPI DISCLOSURES

The financial information relating to BPI (the "BPI Financial Information") contained in this press release has been derived from the financial statements and management's discussion and analysis of BPI (the "BPI Disclosures"), which have been filed by the Fund on behalf of BPI pursuant to an undertaking dated July 9, 2002 provided by BPI to the various securities commissions in Canada.  BPI's senior management prepares the BPI Disclosures and provides them to the Fund for filing.  The auditors of BPI report to the sole shareholder of BPI, and not to the trustees or Unitholders of the Fund.  The Fund does not own, control, or consolidate BPI and therefore, the Fund's disclosure controls and procedures and its internal controls over financial reporting do not encompass BPI or BPI's internal controls over financial reporting.  The BPI Disclosures are the responsibility of BPI and its directors and officers and not the Fund and its trustees and officers.  The Fund provides no assurances as to its accuracy or completeness.  The Fund disclaims any and all liability for the BPI Financial Information.

Forward Looking Information

Certain information in this press release constitutes "forward-looking information" that involves known and unknown risks, uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the Fund, Boston Pizza Holdings Trust, Boston Pizza Royalties Limited Partnership, Boston Pizza Holdings Limited Partnership, Boston Pizza Holdings GP Inc., Boston Pizza GP Inc., BPI, BP Canada LP, Boston Pizza Canada Holdings Inc., Boston Pizza Canada Holdings Partnership, Boston Pizza restaurants, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.  All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Fund or its trustees expect or anticipate will or may occur in the future, including such things as, the expected timing of payment of the distribution to unitholders of the Fund, the success of BPI, BP Canada LP and Boston Pizza restaurants, and the amount of Franchise Sales, Royalty Income, Distribution Income and Distributable Cash available for distribution to Unitholders, depending on both consumer demand and restaurant-level operations, consumer demand being driven by consumer confidence and discretionary spending, both of which are influenced by macroeconomic factors such as inflation and interest rates, wage growth and unemployment levels, recession risks, competition within the restaurant industry, evolving consumer preferences, changes in taxation and major geopolitical developments, including tariffs, restaurant-level success being impacted by supply chain disruptions, labor availability, rising input costs, and other operational challenges, increased input costs and decreased availability of goods for Boston Pizza restaurants due to heightened trade tensions and associated uncertainty, dampening consumer demand, confidence and discretionary spending, and increasing unemployment rates, Boston Pizza's supply chain being well positioned to weather the volatility caused by trade tensions and threats of tariffs and counter-tariffs as an overwhelming majority of raw materials purchased by Boston Pizza restaurants in the day-to-day operation of their businesses are sourced within Canada and not subject to counter-tariffs, trade tensions with the United States of America resulting in Canadian consumers spending less on travel to the United States of America and more on supporting Canadian brands like Boston Pizza, the impact of broader economic contractions or recessionary conditions on consumer-facing industries, any degradation of consumer demand, confidence or discretionary spending, or increases in unemployment rates and recessionary fears resulting in reduced guest visitation, average guest cheque amounts, Franchise Sales, Royalty Income, Distribution Income, the Fund's Distributable Cash available for distribution to Unitholders, and profitability of Boston Pizza Restaurants, and resulting in increased risk of Boston Pizza restaurants closing; BPI's management remaining proactive and committed to adjusting its business strategy to effectively address challenges and sustain positive sales momentum in 2025, the trustees of the Fund remaining cautious and continuing to closely monitor the Fund's available cash balances and distribution levels to maintain a stable and sustainable distribution flow for the Unitholders, and other such matters are forward-looking information.  When used in this press release, forward-looking information may include words such as "anticipate", "estimate", "may", "will", "expect", "believe", "plan", "should", "continue" and other similar terminology.  The material factors and assumptions used to develop the forward-looking information contained in this press release include the following: the Fund maintaining the same distribution policy, expectations related to future general economic conditions and geopolitical developments, expectations related to guest traffic and average guest cheques, expectations related to the resiliency of the Boston Pizza system, the impact of and response to changing competitive landscapes and guest behaviours, strategies and efforts to strive for profitability of BPI, BP Canada LP and Boston Pizza Restaurants, ability to maintain a stable supply chain, including the ability to continuously source raw materials within Canada, ability to attract and retain qualified employees, key personnel and qualified franchisees and operators, and Boston Pizza restaurants maintaining operational excellence.  Risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievement expressed or implied by the forward-looking information contained herein, relate to (among others): competition, demographic trends, business and economic conditions, interest rates and inflationary pressures, legislation and regulation, reliance on operating revenues, financial reporting and accounting controls, policies and practices, the results of operations and financial condition of BPI, BP Canada LP and the Fund, labour availability, cost and efficiency, extreme weather events, as well as those factors discussed under the heading "Risks and Uncertainties" in the most recent Annual Information Form of the Fund.  This information reflects current expectations regarding future events and operating performance and speaks only as of the date of this press release.  Except as required by law, neither the Fund nor BPI assumes any obligation to update previously disclosed forward-looking information.  For a complete list of the risks associated with forward-looking information and the Fund's business, please refer to the "Risks and Uncertainties" and "Note Regarding Forward-Looking Information" sections included in the most recent Annual Information Form of the Fund available at www.sedarplus.ca and www.bpincomefund.com.

The trustees of the Fund have approved the contents of this news release.

www.bpincomefund.com

® Boston Pizza Royalties Limited Partnership. All Boston Pizza registered Canadian trademarks and unregistered Canadian trademarks containing the words "Boston", "BP", and/or "Pizza" are trademarks owned by the Boston Pizza Royalties Limited Partnership and licensed by the Boston Pizza Royalties Limited Partnership to Boston Pizza International Inc. The Boston Pizza roundel is a trademark of Boston Pizza Royalties Limited Partnership, used under license. © Boston Pizza International Inc. 2025.

_________________________
Notes – Non-GAAP, Specified Financial Measures and Other Information
1	"Franchise Sales" is the basis upon which Royalty and Distribution Income are payable, and means the gross revenue: (i) of the corporate Boston Pizza restaurants in Canada owned by BPI that are in the Royalty Pool; and (ii) reported to BP Canada LP by franchised Boston Pizza restaurants in Canada that are in the Royalty Pool, without audit or other form of independent assurance, and in the case of both (i) and (ii), after deducting revenue from the sale of liquor, beer, wine and revenue from BP Canada LP approved national promotions and discounts and excluding applicable sales and similar taxes. Nevertheless, BP Canada LP periodically conducts audits of the Franchise Sales reported to it by its franchisees, and the Franchise Sales reported herein include results from sales audits of earlier periods. Franchise Sales is reported on a quarterly basis in the Fund's financial statements.
2	"Same Restaurant Sales" or "SRS" is a supplementary financial measure under National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure ("NI 52‑112") and therefore may not be comparable to similar measures presented by other issuers.  The Fund defines SRS as the change in Franchise Sales of Boston Pizza restaurants as compared to the Franchise Sales for the same period in the previous year (where restaurants were open for a minimum of 24 months).  The Fund believes that SRS provides investors meaningful information regarding the performance of Boston Pizza restaurants.
3	"Distributable Cash" is a non-GAAP financial measure under NI 52-112.  Distributable Cash is not a standardized financial measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers.  The Fund defines Distributable Cash to be, in respect of any particular period, the Fund's cash flows generated from operating activities for that period (being the most comparable financial measure in the Fund's primary financial statements) minus (a) BPI's entitlement in respect of its Class B general partner units ("Class B Units") of Boston Pizza Royalties Limited Partnership ("Royalties LP") in respect of the period (see note 8 below), minus (b) interest paid on debt during the period, minus (c) principal repayments on debt that are contractually required to be made during the period, minus (d) the current income tax expense in respect of the period, plus (e) current income tax paid during the period (the sum of (d) and (e) being "SIFT Tax on Units").  Management believes that Distributable Cash provides investors with useful information about the amount of cash the Fund has generated and has available for distribution on the Units in respect of any period.  The tables in the "Financial Highlights" section of this press release provide a reconciliation from this non-GAAP financial measure to cash flows generated from operating activities, which is the most directly comparable IFRS measure.  Current income tax expense in respect of any period is prepared using reasonable and supportable assumptions (including that the base rate of specified investment flow-through tax will not increase throughout the calendar year and that certain expenses of the Fund will continue to be deductible for income tax purposes), all of which reflect the Fund's planned courses of action given management's judgment about the most probable set of economic conditions.  There is a risk that the federal government of Canada could increase the base rate of SIFT Tax or that applicable taxation authorities could assess the Fund on the basis that certain expenses of the Fund are not deductible.  Investors are cautioned that if either of these possibilities occurs, then the actual results for this component of Distributable Cash may vary, perhaps materially, from the amounts used in the reconciliation.
4	"Distributable Cash per Unit" is a non-GAAP ratio under NI 52-112.  Distributable Cash per Unit is not a standardized financial measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers.  The Fund defines Distributable Cash per Unit for any period as the Distributable Cash generated in that period divided by the weighted average number of Units outstanding during that period.  Management believes that Distributable Cash per Unit provides investors with useful information regarding the amount of cash per Unit that the Fund has generated and has available for distribution in respect of any period.
5	"Payout Ratio" is a non-GAAP ratio under NI 52-112.  Payout Ratio is not a standardized financial measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers.  The Fund defines Payout Ratio for any period as the aggregate distributions paid by the Fund during that period divided by the Distributable Cash generated in that period.  Management believes that Payout Ratio provides investors with useful information regarding the extent to which the Fund distributes cash generated on Units.
6	Royalties LP licenses BPI the right to use various Boston Pizza trademarks in return for BPI paying Boston Pizza Royalties Limited Partnership a royalty equal to 4% of Franchise Sales of Boston Pizza restaurants (the "Royalty Income") in the Fund's royalty pool (the "Royalty Pool").
7	"Distribution Income" is income received indirectly by the Fund on Class 1 LP Units and Class 2 LP Units of BP Canada LP.  See the "Overview – Purpose of the Fund / Sources of Revenue" section of the Fund's MD&A for the Period for more details.
8	"BPI Class B Unit entitlement" is a supplementary financial measure under NI 52-112 and therefore may not be comparable to similar measures presented by other issuers.  The BPI Class B Unit entitlement is the interest expense on Class B Units in respect of a period plus management's estimate of how much cash BPI would be entitled to receive pursuant to the limited partnership agreement governing Royalties LP (a copy of which is available on www.sedarplus.ca) on its Class B Units if Royalties LP fully distributed any residual cash generated in respect of that period after the Fund pays interest on debt, principal repayments on debt and SIFT Tax on Units in respect of that period.  Management believes that the BPI Class B Unit entitlement is an important component in calculating Distributable Cash since it represents the amount of residual cash generated that BPI would be entitled to receive and therefore would not be available for distribution to Unitholders.  Management prepares such estimate using reasonable and supportable assumptions that reflect the Fund's planned courses of action given management's judgment about the most probable set of economic conditions.

SOURCE Boston Pizza Royalties Income Fund

FOR FURTHER INFORMATION PLEASE CONTACT: Michael Harbinson, Chief Financial Officer, Tel: [phone], E-mail: [email protected]