02.12
Boston Pizza Royalties (BPF.UN): $12.69 – Q4 results light; Comp declines moderating
Sector Perform, Average Risk, Price Target: $10.00
BPF.UN reported slightly light Q4 results. BPF.UN delivered comps of -4.4%, below RBC CM’s estimate of -2.5% and flat results last year. BPF delivered comps of -9.6% in Q3 and -5.5% in Q2. The impact of new restaurants and successful promotions could not offset ongoing economic pressures affecting restaurant traffic. AFFO of $0.33 was flat to last year and inline with our $0.34 expectations. The ongoing buyback offset some of the negative cash flow impact of lower comps. No announcement was provided on conversion. RBC CM continues to expect BPF.UN to sustain a post-conversion distribution of $1.00/unit on mid-single digit comps and 15-20 new stores openings per year.
No Comment.
Add Your Comment