Review of Boston Pizza Royalties Income Fund

JAN 30, 2025 - BPF.UN remains a cheap name for capital-light income-seeking investors but with limited growth prospects, as BPF.UN is a mature business that focuses on generating sustainable yield rather than growth. That being said, there is an upside optionality for a strategic acquisition that is not priced in yet, which recently happened with one of its peers – A&W Corporation. BPF.UN is an interesting high-yield name for income-seeking investors, which becomes even more appealing amid a declining interest rate environment. Overall, BPF.UN’s operating results have not shown tremendous improvement yet. BPF.UN is still an attractive royalty income play with some “upside optionality”, either as a target acquisition or from operational improvement. We will maintain our rating at “B-“ for now but will remain open to a downgrade if operating results do not improve.

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Q: For some diversification along with some income I’m debating adding a bit more food service industry. I already own a half position of AW but would consider adding another half of same or go with a different half such as PZA, KEG.UN, BPF.UN, or SRV.UN. Thoughts

Read Answer Asked by David on April 14, 2025

Q: Hi 5i team,

I would like to park some cash for about one year, which is better and safer ZST or BPF.UN ? Is there any better option other then these two?

Thanks,
George

Read Answer Asked by George on February 26, 2025

Q: Pizza Pizza and Boston Pizza's price history and dividend payouts seem to have been reasonably stable for more than one year. I know you prefer AW.UN but are the other two ok for income? QSR looks too pricey and has a low dividend. What do you recommend?

Read Answer Asked by Jean on January 03, 2025