Pizza Pizza Royalty Corp. Q3 2026 Earnings Recap

The stock rose 6.5% after earnings, despite same-store sales falling 2.3% and the company lowering its development outlook to 1%–2% from its typical 2%–3%. Direct-channel sales showed signs of stabilization, while Pizza 73 held same-store sales flat.

Key Takeaways

• Overall same-store sales declined 2.3%: Pizza Pizza fell 2.7%, while Pizza 73 was flat.
• The company cited tight discretionary spending, promotional competition, and changes to student visa and permanent-residence programs as headwinds, particularly for nontraditional locations and nearby restaurants.
• Direct channels showed encouraging signs: proprietary digital platforms gained orders, and walk-in and preorder pickup business recorded solid gains.
• Development outlook was reduced to 1%–2% for the year, with management citing construction delays and challenges sourcing qualified franchisees.
• The quarter saw two nontraditional Pizza Pizza openings, offset by closures of 10 nontraditional and two traditional restaurants; Pizza 73’s restaurant count was unchanged.