TORONTO, March 18, 2020 /CNW/ - Pizza Pizza Royalty Corp. (the "Company") (TSX: PZA) today announced its monthly cash dividend of $0.0713 per share for March 2020. The dividend is unchanged from prior months.
The dividend will be payable to shareholders of record at the close of business on March 31, 2020, and will be paid on April 15, 2020.
COVID-19 and the associated impacts on restaurant operations and customer activity, have negatively affected the Company's Royalty Pool System Sales. However, current royalty income, which is supported by the Company's working capital reserve, is sufficient to pay the March dividend. The Company will continue to monitor these impacts as market conditions evolve.
At December 31, 2019, the Company had a $3.6 million working capital reserve to support the dividend in the event of short-term downward pressures on Royalty Pool Sales and, thus, royalty income.
Paul Goddard, CEO, Pizza Pizza Limited, said, "Our Pizza Pizza and Pizza 73 restaurants are proud to continue servicing communities right across Canada, although in a limited capacity, while prioritizing the health and safety of our employees, operators, customers and local communities in which we operate. Our new contactless payment options for delivery and takeout purchases are now available for all customers as we continue adjusting our restaurant operations to safely deliver pizza, especially to feed front line workers, in addition to all other Canadians."
For tax purposes, the 2020 dividend will be considered a taxable eligible dividend.
SOURCE Pizza Pizza Royalty Corp.
For further information: Christine D'Sylva, Vice President of Finance and Investor Relations, Pizza Pizza Royalty Corp., (416) 967-1010 x393 [email protected], www.pizzapizza.ca and www.pizza73.com or www.sedar.com