Q4 2025 Boston Pizza Royalties Income Fund Earnings Call

February 13, 2026

Operator 2: Hello, this is the Chorus Call conference operator. Thank you for standing by. Welcome to Boston Pizza's Q4 conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded on 13 February 2026. After the presentation, there will be a question-and-answer session. Participants on the call may also pose their questions via email to Boston Pizza's Investor Relations Department at investorrelations@bostonpizza.com. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Michael Harbinson, Chief Financial Officer. Please go ahead.

Operator: Hello, this is the Chorus Call conference operator. Thank you for standing by. Welcome to Boston Pizza's Q4 conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded on 13 February 2026. After the presentation there will be a question-and-answer session. Participants on the call may also pose their questions via email to Boston Pizza's Investor Relations Department at investorrelations@bostonpizza.com. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Michael Harbinson, Chief Financial Officer. Please go ahead.

Speaker #2: Participants on the call may also pose their questions via email to bostonpizzasinvestorrelationsdepartment@bostonpizza.com. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone.

Speaker #2: At this time, I would like to turn the conference over to Michael Harbinson, Chief Financial Officer. Please go ahead. Very good. Thank you, and welcome to the call.

Michael Harbinson: Very good. Thank you, and welcome to the call. Today we'll be discussing the 2025 fourth quarter results for both Boston Pizza Royalties Income Fund, or the Fund, and for Boston Pizza International, or BPI. For complete details on our financial results, please see our fourth quarter materials filed earlier today on SEDAR+ or visit the fund's website at www.bpincomefund.com. Should you require additional information after the call, you can reach out to our investor relations email address at investorrelations@bostonpizza.com. The fund is a limited purpose, open-ended trust established under the laws of British Columbia to acquire, indirectly, certain trademarks and trade names used by BPI in its Boston Pizza restaurants in Canada. BPI pays royalty income and distribution income to the fund based on franchise revenue of royalty pool restaurants.

Michael Harbinson: Very good. Thank you, and welcome to the call. Today we'll be discussing the 2025 fourth quarter results for both Boston Pizza Royalties Income Fund or the Fund and for Boston Pizza International or BPI. For complete details on our financial results please see our fourth quarter materials filed earlier today on SEDAR+ or visit the fund's website at www.bpincomefund.com. Should you require additional information after the call you can reach out to our investor relations email address at investorrelations@bostonpizza.com. The fund is a limited purpose, open-ended trust established under the laws of British Columbia to acquire, indirectly, certain trademarks and trade names used by BPI in its Boston Pizza restaurants in Canada. BPI pays royalty income and distribution income to the fund based on franchise revenue of royalty pool restaurants.

Speaker #2: Today, we'll be discussing the 2025 fourth quarter results for both Boston Pizza Royalties Income Fund, or the Fund, and for Boston Pizza International, or BPI.

Speaker #2: For complete details on our financial results, please see our fourth quarter materials filed earlier today on SEDAR+ or visit the Fund's website at www.bpincomefund.com.

Speaker #2: Should you require additional information after the call, you can reach out to our investor relations email address at investorrelations@bostonpizza.com. The fund is a limited purpose, open-ended trust established under the laws of British Columbia to acquire, indirectly, certain trademarks and trade names used by BPI in its Boston Pizza restaurants in Canada.

Speaker #2: BPI pays royalty income and distribution income to the Fund based on franchise revenue of Royalty Pool Restaurants. For a complete description of the Fund and its business, please see the annual information form filed earlier today on SEDAR+.

Michael Harbinson: For a complete description of the fund and its business, please see the annual information form filed earlier today on SEDAR+. Before I turn the call over to Jordan Holm, President of BPI, I would like to note that certain information in the following discussion may constitute forward-looking information. For a more complete definition of forward-looking information and the associated risks, please refer to the fund's management discussion and analysis issued earlier today. Forward-looking information is provided as of the date of this call, and except as required by law, we assume no obligation to update or revise forward-looking information to reflect new events or circumstances. And with that, I will now turn the call over to Jordan. Jordan?

Michael Harbinson: For a complete description of the fund and its business please see the annual information form filed earlier today on SEDAR+. Before I turn the call over to Jordan Holm President of BPI, I would like to note that certain information in the following discussion may constitute forward-looking information. For a more complete definition of forward-looking information and the associated risks please refer to the fund's management discussion and analysis issued earlier today. Forward-looking information is provided as of the date of this call, and except as required by law, we assume no obligation to update or revise forward-looking information to reflect new events or circumstances. And with that I will now turn the call over to Jordan. Jordan?

Speaker #2: Before I turn the call over to Jordan Holm, President of BPI, I would like to note that certain information in the following discussion may constitute forward-looking information.

Speaker #2: For a more complete definition of forward-looking information and the associated risks, please refer to the Fund's Management Discussion and Analysis issued earlier today. Forward-looking information is provided as of the date of this call and, except as required by law, we assume no obligation to update or revise forward-looking information to reflect new events or circumstances.

Speaker #2: And with that, I will now turn the call over to Jordan. Jordan?

Speaker #3: Thank you, Michael, and welcome everyone to Boston Pizza’s fourth quarter investor conference call. Today I'll be discussing our fourth quarter results and share a brief outlook.

Jordan Holm: Thank you, Michael, and welcome everyone to Boston Pizza's Q4 Investor Conference Call. Today I'll be discussing our Q4 results and share a brief outlook, and Michael will summarize our key financial highlights. As usual, we'll leave time for your questions at the end of today's call. In Q4, Boston Pizza continued to deliver strong sales results, sustaining the momentum built throughout the preceding quarters of 2025. This strong performance was hallmarked by Boston Pizza restaurants achieving the highest annual total franchise sales ever recorded in 2025. These results were achieved despite mounting trade tensions and broader macroeconomic uncertainties, underscoring the resilience and strength of our business. The fund posted franchise sales from restaurants in the Royalty Pool of CAD 244.4 million for Q4 and CAD 976.3 million for the year....

Jordan Holm: Thank you Michael and welcome everyone to Boston Pizza's Q4 Investor Conference Call. Today I'll be discussing our Q4 results and share a brief outlook, and Michael will summarize our key financial highlights. As usual, we'll leave time for your questions at the end of today's call. In Q4, Boston Pizza continued to deliver strong sales results, sustaining the momentum built throughout the preceding quarters of 2025. This strong performance was hallmarked by Boston Pizza restaurants achieving the highest annual total franchise sales ever recorded in 2025. These results were achieved despite mounting trade tensions and broader macroeconomic uncertainties, underscoring the resilience and strength of our business. The fund posted franchise sales from restaurants in the Royalty Pool of CAD 244.4 million for Q4 and CAD 976.3 million for the year....

Speaker #3: And Michael will summarize our key financial highlights. As usual, we'll leave time for your questions at the end of today's call. In the fourth quarter, Boston Pizza continued to deliver strong sales results, sustaining the momentum built throughout the preceding quarters of 2025.

Speaker #3: This strong performance was hallmarked by Boston Pizza restaurants achieving the highest annual total franchise sales ever recorded, in 2025. These results were achieved despite mounting trade tensions and broader macroeconomic uncertainties, underscoring the resilience and strength of our business.

Speaker #3: The fund posted franchise sales from restaurants in the royalty pool of $244.4 million for the fourth quarter and $976.3 million for the year, representing increases of 4.3% and 4.8%, respectively, versus the same periods one year ago.

Jordan Holm: representing increases of 4.3% and 4.8% respectively, versus the same periods one year ago. Same Restaurant Sales, or SRS, was 3.7% for the fourth quarter and 4.7% for the year. SRS for the fourth quarter was principally due to continued momentum in takeout and delivery, and effective promotional initiatives. The Major League Baseball playoffs also positively impacted SRS for the period. For the year, SRS was principally due to continued momentum in takeout and delivery, effective promotional initiatives, and favorable comparisons to a softer performance in the prior year. Hockey and baseball playoffs also positively impacted SRS for the year.

Speaker #3: Same restaurant sales, or SRS, was 3.7% for the fourth quarter and 4.7% for the year. SRS for the fourth quarter was principally due to continued momentum in takeout and delivery and effective promotional initiatives.

Speaker #3: The Major League Baseball playoffs also positively impacted SRS for the period. For the year, SRS was principally due to continued momentum in takeout and delivery, effective promotional initiatives, and favorable comparisons to a softer performance in the prior year.

Speaker #3: Hockey and baseball playoffs also positively impacted SRS for the year. From a marketing perspective, we kicked off the fourth quarter with the exciting launch of our game-day menu in coordination with the football season.

Jordan Holm: From a marketing perspective, we kicked off the Q4 with the exciting launch of our game day menu in coordination with the football season, offering value deals for food and beverages and holding weekly giveaways with prizes such as free food and football merchandise. Our game day promotion was complemented by extensive TV, digital, and social media coverage to boost guest engagement. The Q4 also saw the launch of our holiday menu, with new festive menu creations for both food and beverages. This included the Pepperoni Stinger Pizza and Stuffed Crust Mozza Sticks, both of which quickly became guest favorites and will become part of our core menu offering going forward. Complementing the holiday menu was our annual gift card incentive program, where guests who purchase CAD 50 or more in gift cards receive a CAD 10 promotional card redeemable from January to March 2026.

Speaker #3: Offering value deals for food and beverages, and holding weekly giveaways with prizes such as free food and football merchandise. Our game-day promotion was complemented by extensive TV, digital, and social media coverage to boost guest engagement.

Speaker #3: The fourth quarter also saw the launch of our holiday menu, with new festive menu creations for both food and beverages. This included the pepperoni stinger pizza and stuffed crust matzo sticks, both of which quickly became guest favorites and will become part of our core menu offering going forward.

Speaker #3: Complementing the holiday menu was our annual gift card incentive program, where guests who purchase $50 or more in gift cards receive a $10 promotional card redeemable from January to March of 2026.

Speaker #3: In terms of restaurant development, nine Boston Pizza restaurants were renovated during the fourth quarter, and 40 restaurants were renovated in total during the year.

Jordan Holm: In terms of restaurant development, 9 Boston Pizza restaurants were renovated during Q4, and 40 restaurants were renovated in total during the year. We have an array of exciting initiatives lined up for Q1 of 2026, designed to maintain our strong sales momentum. I'll continue or I'll share the details with you shortly, but first, let's hear from Michael about the fund's financial performance. Michael?

Speaker #3: We have an array of exciting initiatives lined up for the first quarter of 2026, designed to maintain our strong sales momentum. I'll share the details with you shortly.

Speaker #3: But first, let's hear from Michael about the Fund's financial performance. Michael?

Speaker #2: Thank you, Jordan. The fund posted royalty income of $9.8 million for the fourth quarter and $39.1 million for the year, compared to $9.4 million and $37.3 million, respectively, for the same periods one year ago.

Michael Harbinson: Thank you, Jordan. The fund posted royalty income of CAD 9.8 million for Q4 and CAD 39.1 million for the year, compared to CAD 9.4 million and CAD 37.3 million, respectively, for the same periods one year ago. The fund posted distribution income of CAD 3.2 million for Q4 and CAD 12.8 million for the year, compared to CAD 3.1 million and CAD 12.2 million, respectively, for the same periods one year ago. Royalty income and distribution income for Q4 and year were based on the 372 Boston Pizza restaurants in the royalty pool, which reported franchise sales of CAD 244.4 million and CAD 976.3 million, respectively.

Speaker #2: The fund posted distribution income of $3.2 million for the fourth quarter and $12.8 million for the year, compared to $3.1 million and $12.2 million, respectively, for the same periods one year ago.

Speaker #2: Royalty income and distribution income for the fourth quarter and year were based on the 372 Boston Pizza restaurants in the royalty pool, which reported franchise sales of $244.4 million and $976.3 million, respectively.

Speaker #2: For the same periods in 2024, the royalty pool reported franchise sales of $234.2 million and $931.7 million. The Fund's net and comprehensive income was $11.1 million for the fourth quarter, compared to $6.6 million for the fourth quarter of 2024.

Michael Harbinson: For the same periods in 2024, the royalty pool reported franchise sales of CAD 234.2 million and CAD 931.7 million. The fund's net and comprehensive income was CAD 11.1 million for Q4, compared to CAD 6.6 million for Q4 of 2024. The CAD 4.5 million increase in the fund's net and comprehensive income for Q4, compared to the same period in 2024, was primarily due to a CAD 5.7 million increase in fair value gain and a CAD 0.6 million increase in royalty income and distribution income, all partially offset by a CAD 1.5 million increase in income tax expense and a CAD 0.3 million increase in net interest expense.

Speaker #2: The $4.5 million increase in the fund's net and comprehensive income for the fourth quarter, compared to the same period in 2024, was primarily due to a $5.7 million increase in fair value gain and a $0.6 million increase in royalty income and distribution income, all partially offset by a $1.5 million increase in income tax expense and a $0.3 million increase in net interest expense.

Speaker #2: The fund's net and comprehensive income was $42.2 million for the year, compared to $31.9 million in 2024. The $10.3 million increase in the fund's net and comprehensive income for the year, compared to 2024, was primarily due to a $10.7 million increase in fair value gain, a $2.4 million increase in royalty income and distribution income, and a $2.2 million decrease in administrative expenses, partially offset by a $2.6 million increase in income tax expense and a $0.3 million increase in net interest expense.

Michael Harbinson: The fund's net and comprehensive income was CAD 42.2 million for the year, compared to CAD 31.9 million in 2024. The CAD 10.3 million increase in the fund's net and comprehensive income for the year, compared to 2024, was primarily due to a CAD 10.7 million increase in fair value gain, a CAD 2.4 million increase in royalty income and distribution income, and a CAD 2.2 million decrease in administrative expenses, partially offset by a CAD 2.6 million increase in income tax expense and a CAD 0.3 million increase in net interest expense. The fund's cash flows generated from operating activities for Q4 was CAD 9.9 million, compared to CAD 9.4 million in Q4 of 2024.

Speaker #2: The fund's cash flows generated from operating activities for the fourth quarter were $9.9 million, compared to $9.4 million in the fourth quarter of 2024.

Speaker #2: The increase of $0.5 million was primarily due to an increase in royalty income and distribution income of $0.6 million and an increase in royalty income and distribution income of sorry, $0.6 million and an increase in changes in working capital of $0.1 million.

Michael Harbinson: The increase of CAD 0.5 million was primarily due to an increase in royalty income and distribution income of CAD 0.6 million, and an increase in royalty income and distribution income of... Sorry, CAD 0.6 million, and an increase in changes in working capital of CAD 0.1 million, partially offset by an increase in income taxes paid of CAD 0.2 million. Cash flows generated from operating activities for the year was CAD 39.7 million, compared to CAD 38.1 million in 2024.

Speaker #2: Partially offset by an increase in income taxes paid of $0.2 million. Cash flows generated from operating activities for the year were $39.7 million, compared to $38.1 million in 2024.

Speaker #2: The increase of $1.6 million was primarily due to an increase in royalty income and distribution income of $2.4 million; a decrease in administrative expenses of $0.2 million; partially offset by an increase in income taxes paid of $0.7 million; a decrease in changes in working capital of $0.2 million; and a decrease in interest received of $0.1 million.

Michael Harbinson: The increase of CAD 1.6 million was primarily due to an increase in royalty income and distribution income of CAD 2.4 million, a decrease in administrative expenses of CAD 0.2 million, partially offset by an increase in income taxes paid of CAD 0.7 million, a decrease in changes in working capital of CAD 0.2 million, and a decrease in interest received of CAD 0.1 million. While net and comprehensive income or loss and cash flows from operating activities are both measures under IFRS accounting standards or IFRS, the fund is of the view that net income or loss and cash flows from operating activities do not provide the most meaningful measurement of the fund's ability to pay distributions.

Speaker #2: While net and comprehensive income or loss, and cash flows from operating activities, are both measures under IFRS accounting standards or IFRS, the Fund is of the view that net income or loss and cash flows from operating activities do not provide the most meaningful measurement of the Fund's ability to pay distributions.

Speaker #2: Net income contains non-cash items that do not affect the Fund's cash flows, whereas cash flows from operating activities are not inclusive of all of the Fund's cash required outflows and therefore are not indicative of the cash available for distribution to unitholders.

Michael Harbinson: Net income contains non-cash items that do not affect the fund's cash flows, whereas cash flows from operating activities is not inclusive of all of the fund's cash required outflows and therefore is not indicative of the cash available for distribution to unitholders. Non-cash items include fair value adjustments on the investment in Boston Pizza Canada Limited Partnership, the Class B Unit liability, interest rate swaps, and changes in deferred income taxes. Consequently, the fund reports the non-IFRS metrics of distributable cash and payout ratio to provide investors with, in the fund's opinion, more meaningful information regarding the fund's ability to pay distribution to unitholders. The fund generated distributable cash of CAD 7.9 million for Q4, compared to CAD 7.5 million for the same period in 2024.

Speaker #2: Non-cash items include fair value adjustments on the investment in Boston Pizza Canada Limited Partnership, the Class B Unit liability, interest rate swaps, and changes in deferred income taxes.

Speaker #2: Consequently, the Fund reports the non-IFRS metrics of distributable cash and payout ratio to provide investors, in the Fund's opinion, with more meaningful information regarding the Fund's ability to pay distributions to unitholders.

Speaker #2: The Fund generated distributable cash of $7.9 million for the fourth quarter, compared to $7.5 million for the same period in 2024. The increase in distributable cash of $0.4 million, or 5.1%, was primarily due to an increase in cash flows generated from operating activities of $0.5 million, partially offset by a $0.1 million increase in BPI Class B unit entitlement.

Michael Harbinson: The increase in distributable cash of CAD 0.4 million or 5.1% was primarily due to an increase in cash flows generated from operating activities of CAD 0.5 million, partially offset by a CAD 0.1 million increase in BPI Class B Unit entitlement. The fund generated distributable cash of CAD 31.6 million for the year, compared to CAD 30.4 million in 2024. The increase in distributable cash of CAD 1.2 million or 4.1% was primarily due to an increase in cash flows generated from operating activities of CAD 1.6 million, partially offset by higher Class B Unit entitlement of CAD 0.2 million and higher interest paid on debt of CAD 0.1 million.

Speaker #2: The Fund generated distributable cash of $31.6 million for the year, compared to $30.4 million in 2024. The increase in distributable cash of $1.2 million, or 4.1%, was primarily due to an increase in cash flows generated from operating activities of $1.6 million, partially offset by higher Class B unit entitlement of $0.2 million and higher interest paid on debt of $0.1 million.

Speaker #2: The fund generated distributable cash per unit of 36.9 cents for the fourth quarter and $1.487 for the year, compared to 35.1 cents and $1.429, respectively, for the same periods in 2024.

Michael Harbinson: The fund generated distributable cash per unit of CAD 0.369 for Q4 and CAD 1.487 for the year, compared to CAD 0.351 and CAD 1.429, respectively, for the same periods in 2024. The increase in distributable cash per unit of CAD 0.018 or 5.1% for Q4 was primarily due to the increase in distributable cash discussed earlier. For the year, the increase in distributable cash per unit of CAD 0.058 or 4.1% was primarily due to the increase in distributable cash discussed earlier.

Speaker #2: The increase in distributable cash per unit of 1.8 cents, or 5.1%, for the fourth quarter was primarily due to the increase in distributable cash discussed earlier.

Speaker #2: For the year, the increase in distributable cash per unit of 5.8 cents, or 4.1%, was primarily due to the increase in distributable cash discussed earlier.

Speaker #2: As Jordan highlighted previously, during the fourth quarter, Boston Pizza broke its record for the highest year for total franchise sales in the brand's history.

Michael Harbinson: As Jordan highlighted previously, during Q4, Boston Pizza broke its record for the highest year for total franchise sales in the brand's history, enabling the fund to issue a special cash distribution of CAD 0.11. This special distribution was declared on 8 December 2025, and paid to unitholders on 31 December 2025. The special distribution affected the fund's payout ratio for Q4 and year. The fund's payout ratio for Q4 was 127.3%, compared to 118.4% in Q4 of 2024. The increase in the fund's payout ratio for Q4 was due to distributions paid increasing by CAD 1.1 million or 13%, including the special distribution, partly offset by distributable cash increasing by CAD 0.4 million or 5.1%.

Speaker #2: Enabling the fund to issue a special cash distribution of $0.11. This special distribution was declared on December 8, 2025, and paid to unitholders on December 31, 2025.

Speaker #2: The special distribution affected the fund's payout ratio for the fourth quarter and year. The fund's payout ratio for the fourth quarter was 127.3% compared to 118.4% in the fourth quarter of 2024.

Speaker #2: The increase in the Fund's payout ratio for the fourth quarter was due to distributions paid increasing by $1.1 million, or 13%, including the special distribution, partly offset by distributable cash increasing by $0.4 million, or 5.1%.

Speaker #2: For the year, the Fund's payout ratio was 101.9%, compared to 99.9% in 2024. The increase in the Fund's payout ratio for the year was due to distributions paid increasing by $1.9 million, or 6.2%, including the special distribution, partially offset by distributable cash increasing by $1.2 million, or 4.1%.

Michael Harbinson: For the year, the fund's payout ratio was 101.9%, compared to 99.9% in 2024. The increase in the fund's payout ratio for the year was due to distributions paid increasing by CAD 1.9 million or 6.2%, including the special distribution, partially offset by distributable cash increasing by CAD 1.2 million or 4.1%. For illustration, the payout ratio for the fourth quarter and the year would have been 97.5% and 94.5%, respectively, without taking the special distribution into account. The fund's payout ratio fluctuates quarter to quarter, depending on the amount of distributions paid during a quarter and the amount of distributable cash generated during that quarter.

Speaker #2: For illustration, the payout ratio for the fourth quarter and the year would have been 97.5% and 94.5%, respectively, without taking the special distribution into account.

Speaker #2: The fund's payout ratio fluctuates quarter to quarter depending on the amount of distributions paid during a quarter and the amount of distributable cash generated during that quarter.

Speaker #2: On February 12, 2026, the trustees of the fund approved a cash distribution for the period of January 1, 2026, to January 31, 2026, of $0.12 per unit.

Michael Harbinson: On 12 February 2026, the trustees of the fund approved a cash distribution for the period of 1 January 2026 to 31 January 2026, of CAD 0.12 per unit, and that will be paid on 27 February 2026, to unitholders of record at the close of business on 21 February 2026. The trustees' objective in setting a monthly distribution amount is simply that it be sustainable. The trustees will continue to closely monitor the fund's available cash balances, given the fluctuating economic outlook. And with that, I will turn the call back over to Jordan for more on the outlook. Jordan?

Speaker #2: And that will be paid on February 27, 2026, to unitholders of record at the close of business on February 21, 2026. The trustees' objective in setting a monthly distribution amount is simply that it be sustainable.

Speaker #2: The trustees will continue to closely monitor the Fund's available cash balances given the fluctuating economic outlook. And with that, I will turn the call back over to Jordan for more on the outlook.

Speaker #2: Jordan.

Speaker #1: Thank you, Michael. We are excited to begin 2026 with a lineup of guest-favorite campaigns. Boston Pizza launched its first quarter with the popular Pasta Tuesday all-month-long promotion in January, giving guests the chance to enjoy pasta every day of the week starting at just $11.99, with gourmet pastas available for $15.99.

Jordan Holm: Thank you, Michael. We are excited to begin 2026 with a lineup of guest favorite campaigns. Boston Pizza launched its Q1 with the popular Pasta Tuesday All Month Long promotion in January, giving guests the chance to enjoy pastas every day of the week, starting at just CAD 11.99, with gourmet pastas available for CAD 15.99. Additionally, to celebrate the NFL playoff season, we partnered with Pepsi to offer guests the chance to win exclusive NFL prizes, including a trip to a regular season football game. Tomorrow, 14 February, we'll be celebrating one of our favorite traditions, Valentine's Day, with heart-shaped pizzas at Boston Pizza. For every pizza sold, CAD 1 will be donated to help support local charities in our communities.

Speaker #1: Additionally, to celebrate the NFL playoff season, we partnered with Pepsi to offer guests the chance to win exclusive NFL prizes, including a trip to a regular season football game.

Speaker #1: Tomorrow, February 14th, we will be celebrating one of our favorite traditions—Valentine's Day—with heart-shaped pizzas at Boston Pizza. For every pizza sold, $1 will be donated to help support local charities in our communities.

Speaker #1: Further into 2026, we'll be activating on marketing opportunities and supporting franchisees to engage with their communities to cheer on Canadian athletes in the Olympics and in the World Cup.

Jordan Holm: Further into 2026, we'll be activating on marketing opportunities and supporting franchisees to engage with their communities to cheer on Canadian athletes in the Olympics and in the World Cup. As we enter 2026, we aim to build on the strong momentum of the past year, continuing to monitor the evolving trade landscape and proactively adapting our business to support Boston Pizza restaurants across Canada. We are encouraged by our sustained performance and remain committed to elevating the guest experience, supporting our franchisees, and driving long-term sustainable growth through innovation and operational excellence. With that, I'd like to begin the question and answer session. Operator?

Speaker #1: As we enter 2026, we aim to build on the strong momentum of the past year, continuing to monitor the evolving trade landscape and proactively adapting our business to support Boston Pizza restaurants across Canada.

Speaker #1: We are encouraged by our sustained performance, and remain committed to elevating the guest experience, supporting our franchisees, and driving long-term, sustainable growth through innovation and operational excellence.

Speaker #1: With that, I'd like to begin the question-and-answer session. Operator?

Speaker #3: Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star, then 1 on their touch-tone phone, or send the question via email to investorrelations@bostonpizza.com.

Michael Harbinson: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star, then one on their touch-tone phone.

Operator: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star, then one on their touch-tone phone.

Operator 2: ... or send the question via email to investorrelations@bostonpizza.com. Please note, those questions that we do not get during the call will be answered via email immediately following the end of the investor conference call. The first question comes from Nick Corcoran with Acumen Capital. Please go ahead.

Operator: ... or send the question via email to investorrelations@bostonpizza.com. Please note, those questions that we do not get during the call will be answered via email immediately following the end of the investor conference call. The first question comes from Nick Corcoran with Acumen Capital. Please go ahead.

Speaker #3: Please note that any questions we do not receive during the call will be answered via email immediately following the end of the investor conference call.

Speaker #3: The first question comes from Nick Corcavan with Acumen Capital. Please go ahead.

Speaker #4: Good morning, guys, and congrats on the record quarter and record year.

Nick Corcoran: Good morning, guys, and congrats on the record quarter and record year.

Speaker #1: Thank you, Nick. Just a couple of questions for me. The first is, you’re lapping the GST holiday that was at the end of '24, and went into '25.

Jordan Holm: Thank you, Nick.

Nick Corcoran: Just a couple of questions for me. The first is, you're lapping the GST holiday, that was the end of 2024 and went to 2025. I'm just wondering if you saw any impact either in your fourth quarter results or if you've seen anything in your - I understand you're only a few weeks into 2026, but any impact from that?

Speaker #1: I'm just wondering if you saw any impact either in your fourth quarter results, or if you've seen anything in— I understand you're only a few weeks into '26, but—any impact from that?

Speaker #5: Michael, do you want to take that one?

Jordan Holm: Michael, do you want to take that one? Mm-hmm. So the GST holiday last year stretched from December into January, and its impact, I think, on the business was most pronounced in December. So as we lapped kind of December with December, I think that's where we saw some impact. But just to put that in context, it wasn't; the magnitude of that wasn't overly significant. And then in terms of the forward kind of looking aspect of that, without saying anything kind of too substantive, the kind of January over January impact was negligible, I would say. It wasn't overly significant.

Speaker #6: So the GST holiday last year stretched from December into January, and its impact, I think, on the business was most pronounced in December.

Speaker #6: So, as we lapped kind of December with December, I think that's where we saw some impact. But just to put that in context, the magnitude of that wasn't overly significant.

Speaker #6: And then, in terms of the forward kind of looking aspect of that, without saying anything kind of too substantive, the kind of January-over-January impact was negligible, I would say.

Speaker #6: It wasn't overly significant.

Speaker #1: Good. And then, with the Olympics, are you expecting an uptick in traffic because of that?

Nick Corcoran: Good. And then, with the Olympics, are you expecting an uptick in traffic this month?

Speaker #5: Yeah, we are. And certainly, some of the events of the Winter Olympics are more popular for—I'll say—community viewing, or viewing in restaurants, versus other ones that are more often enjoyed at home.

Jordan Holm: Yeah, we are. And, certainly, some of the events of the Winter Olympics are more popular for, I'll say, community viewing or viewing in restaurants versus other ones that are more often enjoyed at home. Hockey, women's and men's, tend to be the two larger team sport draws, I'll say. So as those progress into the medal rounds, we expect people to be coming out to Boston Pizza restaurants to celebrate the games together. And the further those go and the more meaningful the games are, there is, of course, the consideration of time zone when the Olympics are over in Europe.

Speaker #5: Hockey, women's and men's, tend to be the two larger team sport draws, I'll say. So as those progress into the medal rounds, we expect people to be coming out to Boston Pizza restaurants to celebrate the games together.

Speaker #5: And the further those go and the more meaningful the games are, there is, of course, the consideration of time zone when the Olympics are over in Europe.

Jordan Holm: But nonetheless, you know, a semifinal or a gold medal game, should we reach that for either men's or women's hockey or other sports when it's a gold medal on the line, we definitely have plans in place to make sure that Boston Pizza is the destination to watch those events.

Speaker #5: But nonetheless, a semifinal or a gold medal game—should we reach that for either men's or women's hockey, or other sports when it's a gold medal on the line—we definitely have plans in place to make sure that Boston Pizza is the destination to watch those events.

Speaker #1: Great. And you had a pretty good year, I think, for renovations. Any indication what you're expecting for 2026?

Nick Corcoran: Great. You had a pretty good year, I think, for renovations. Any indication what you're expecting for, for 2026?

Nick Corcoran: Great. You had a pretty good year, I think, for renovations. Any indication what you're expecting for for 2026?

Speaker #5: Yeah, we had 40 renovations last year, which was an increase of 12 from 28 the prior year. So, we were pleased with the number of renovations completed in 2025.

Jordan Holm: Yeah. We had 40 renovations last year, which was an increase of 12 from 28 the prior year. So we were pleased with the number of renovations completed in 2025, and that's about the number that we're looking at for this year. Capacity-wise, it's a lot of projects, a lot of work with our franchisees to schedule with our construction teams those different upgrades to the interior and exterior of the restaurants. But we're really encouraged by the motivation, the engagement of our franchisees in moving forward with the renovations. They are required under our franchise agreement every seven years. So, you know, that's the legal requirement.

Jordan Holm: Yeah. We had 40 renovations last year which was an increase of 12 from 28 the prior year. So we were pleased with the number of renovations completed in 2025, and that's about the number that we're looking at for this year. Capacity-wise, it's a lot of projects, a lot of work with our franchisees to schedule with our construction teams those different upgrades to the interior and exterior of the restaurants. But we're really encouraged by the motivation, the engagement of our franchisees in moving forward with the renovations. They are required under our franchise agreement every seven years. So, you know, that's the legal requirement.

Speaker #5: And that's about the number that we're looking at for this year. Capacity-wise, it's a lot of projects—a lot of work with our franchisees to schedule with our construction teams those different upgrades to the interior and exterior of the restaurants.

Speaker #5: But we're really encouraged by the motivation and the engagement of our franchisees in moving forward with the renovations. They are required under our franchise agreement every seven years.

Speaker #5: So that's the legal requirement. But nonetheless, we get franchisees reaching out, talking to people who have just completed renovations, looking at things like audiovisual investments—those tend to be a large part of the upgrade that the guest-facing element of a renovation impacts.

Jordan Holm: But, nonetheless, we get franchisees reaching out, talking to people who have just completed renovations, looking at things like audiovisual investments, which tend to be a large part of the upgrade that the guest-facing element of a renovation impacts. So, yeah, we'll, we'll be in that neighborhood of about 40 renovations. In fact, in this time of year, when restaurants can be a little bit quieter in some locations, we'll often take that opportunity to close down for a week or 10 days and complete a substantial renovation. So we're already off and running in renos for 2026.

Jordan Holm: But, nonetheless, we get franchisees reaching out, talking to people who have just completed renovations, looking at things like audiovisual investments, which tend to be a large part of the upgrade that the guest-facing element of a renovation impacts. So yeah we will be in that neighborhood of about 40 renovations. In fact, in this time of year, when restaurants can be a little bit quieter in some locations we'll often take that opportunity to close down for a week or 10 days and complete a substantial renovation. So we're already off and running in renos for 2026.

Speaker #5: So, yeah, we'll be in that neighborhood of about 40 renovations. In fact, in this time of year, when restaurants can be a little bit quieter in some locations, we'll often take that opportunity to close down for a week or 10 days and complete a substantial renovation.

Speaker #5: So we're already off and running in renos for 2026.

Speaker #1: Great. And maybe one last question from me. How has the pipeline for new restaurants?

Nick Corcoran: Great. And maybe one last question from me: How's the pipeline for, for new restaurants?

Speaker #5: Yeah, so Boston Pizza has a history of continuing to grow, and we have franchising and real estate teams—East, West, and Quebec-based—looking at new opportunities for growth.

Jordan Holm: Yeah. So, you know, Boston Pizza had a history of continuing to grow, and we have franchising and real estate teams east, west, and Quebec-based looking at new opportunities for growth. Traditionally, our growth has come kind of 50% with existing franchisees and 50% with new investors, and that has continued to be the case. We haven't had as many growth opportunities in the last couple of years, including no new restaurants opening in 2025. But we do have projects underway for 2026. We don't give a forecast of exactly the number, but... And then sometimes the reason we don't do that is that it does depend on construction schedules and permitting and those kinds of things.

Jordan Holm: Yeah. So you know Boston Pizza had a history of continuing to grow, and we have franchising and real estate teams east, west, and Quebec-based looking at new opportunities for growth. Traditionally, our growth has come kind of 50% with existing franchisees and 50% with new investors, and that has continued to be the case. We haven't had as many growth opportunities in the last couple of years, including no new restaurants opening in 2025. But we do have projects underway for 2026. We don't give a forecast of exactly the number, but... And then sometimes the reason we don't do that is that it does depend on construction schedules and permitting and those kinds of things.

Speaker #5: Traditionally, our growth has come kind of 50% with existing franchisees and 50% with new investors, and that has continued to be the case. We haven't had as many growth opportunities in the last couple of years, including no new restaurants opening in 2025.

Speaker #5: But we do have projects underway for 2026. We don't give a forecast of exactly the number, but sometimes the reason we don't do that is that it does depend on construction schedules and permitting, and those kinds of things.

Speaker #5: But we have two things. We have projects underway, one in B.C. and one in Ontario in particular, that were originally intended to be 2025 openings.

Jordan Holm: But two things: We have projects underway, one in BC and one in Ontario in particular, that were originally intended to be 2025 openings. They got pushed into 2026, so they'll open relatively new, you know, earlier in the year, just based on completing those projects. And then we've got others in the pipeline for later in the year. And beyond that, we have lots of pins in maps of locations that we have franchisees who have expressed interest in. We've got underserviced, full-service restaurant marketplaces out there.

Speaker #5: They got pushed into 2026, so they'll open relatively earlier in the year just based on completing those projects. And then we've got others in the pipeline for later in the year.

Speaker #5: And beyond that, we have lots of pins in maps of locations where we have franchisees who have expressed interest. We've got underserved, full-service restaurant marketplaces out there.

Speaker #5: And because of the resilience and the diversity of the guests, or the resilience of our platform—having takeout, delivery, dining room, sports bar, patio—we can go into markets like Hope, British Columbia, which we entered in 2024, that are relatively small communities but have great trade areas.

Jordan Holm: And because of the resilience and the diversity of the guests, or the resilience of our platform, having takeout, delivery, dining room, sports bar, patio, we can go into markets like Hope, British Columbia, which we entered in 2024, that you know are relatively small communities but have great trade areas, and can to grow into our national average of about CAD 3.3 million dollars of average sales per location. So, the development pipeline is heating up for us, and we're looking forward to reporting back as the quarters progress in 2026 on our new restaurant openings.

Speaker #5: And to grow into our national average of about $3.3 million of average sales per location. So the development pipeline is heating up for us, and we're looking forward to reporting back as the quarters progress in 2026 on our new restaurant openings.

Speaker #1: Great. That's really good colors. Thanks for taking my questions.

Nick Corcoran: Great. That's really good color. Thanks for taking my questions.

Speaker #5: Thank you, Nick.

Jordan Holm: Thank you, Nick.

Operator 2: This concludes our question and answer session. I would like to turn the conference back over to Jordan Holm for any closing remarks.

Speaker #6: That concludes our question and answer session. I would like to turn the conference back over to Jordan Holm for any closing remarks.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Jordan Holm for any closing remarks.

Speaker #1: Thank you, operator. With no further questions, we'd like to thank you all for taking the time to join us today. As we have closed out 2025, and on behalf of everyone at Boston Pizza International, we want to express our deepest gratitude to our loyal guests and thank you for your unwavering support to our dedicated staff and franchisees.

Jordan Holm: Thank you, Operator. With no further questions, we'd like to thank you all for taking the time to join us today. As we have closed out 2025, and on behalf of everyone at Boston Pizza International, we want to express our deepest gratitude to our loyal guests, and thank you for your unwavering support. To our dedicated staff and franchisees, we appreciate your hard work and passion. To our business partners, we value your collaboration, and to the incredible communities we are honored to serve, thank you for welcoming us into your lives. You are an essential part of the Boston Pizza family. We wish you all a happy Valentine's Day, and we invite you to celebrate with a heart-shaped pizza at your local Boston Pizza, where CAD 1 from every pizza sold goes to a charitable cause in your local community.

Speaker #1: We appreciate your hard work and passion. To our business partners, we value your collaboration. And to the incredible communities we are honored to serve, thank you for welcoming us into your lives.

Speaker #1: You are an essential part of the Boston Pizza family. We wish you all a happy Valentine's Day, and we invite you to celebrate with a heart-shaped pizza at your local Boston Pizza, where $1 from every pizza sold goes to a charitable cause in your local community.

Speaker #1: And we look forward to reconnecting with you all during our first quarter conference call in May 2026. Thank you all, and have a wonderful day.

Jordan Holm: We look forward to reconnecting with you all during our first quarter conference call in May 2026. Thank you all, and have a wonderful day.

Jordan Holm: We look forward to reconnecting with you all during our first quarter conference call in May 2026. Thank you all and have a wonderful day.

Operator 2: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

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