Q1 2025 Boston Pizza Royalties Income Fund Earnings Call

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Speaker Change: Hello. This is of course call conference operator, Thank you for standing by welcome to Boston Pizza as first quarter Conference call.

Operator: Thank you for standing by.

Operator: Welcome to Boston Pizza's first quarter conference call. As a reminder, all participants are in a listen-only mode and the conference is being recorded on May 9, 2025.

Speaker Change: As a reminder, all participants are in a listen only mode and the conference is being recorded on May nine 2025.

Operator: 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 at BostonPizza.com.

Speaker Change: 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 Investor Relations Department at Investor Relations at Boston Pizza Dotcom should anyone need assistance during the conference call. They may signal, an operator by pressing Star then zero on a telephone.

Operator: Should anyone need assistance during the conference call, they may signal an operator by pressing star then zero on a telephone.

Michael Harbinson: At this time, I would like to turn the conference over to Michael Harbinson, Chief Financial Officer. Please go ahead. Thank you very much and welcome to the call everyone. Today we'll be discussing the 2025 first 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 first quarter materials filed earlier today on CDAR Plus, or visit the fund's website at bpincomefund.com. Should you require additional information after the call, you can reach us via the investor relations phone number that is listed in our press release.

Speaker Change: At this time I would like to turn the conference over to Michael Harbinson Cheesecake, Chief Financial Officer. Please go ahead.

Speaker Change: Thank you very much and welcome to the call everyone. Today, we'll be discussing the 2025 first quarter results for both Boston Pizza royalties income fund or the fund and for Boston Pizza International or BPI.

Speaker Change: More complete details on our financial results. Please see our first quarter materials filed earlier today on SEDAR plus or visit the firm's website at BP and confirm dot com.

Speaker Change: Should you require additional information after the call you can reach us via the Investor Relations phone number that is listed in our press release.

Michael Harbinson: 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 revenues of royalty pool restaurants. For a complete description of the fund and its business, please see the annual information form dated March 28, 2025, which was filed on CDARplus.ca.

Speaker Change: The fund has a limited purpose open ended trust established under the laws of British Columbia to acquire indirectly certain trademarks and trade names used by BPI and its Boston Pizza restaurants in Canada BPI.

Speaker Change: BPI pays royalty income and distribution income into the fund based on franchise revenues of royalty cool restaurants for a complete description of the fund and its business. Please see the annual information form dated March 28, 2025, which was filed on SEDAR plus stops here.

Michael Harbinson: 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.

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

Speaker Change: For a more complete definition of forward looking information and the associated risks. Please refer to the funds management discussion and analysis issued earlier today.

Speaker Change: 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.

Jordan Holm: And with that, I will now turn the call over to Jordan. Thank you, Michael, and welcome, everyone, to Boston Pizza's first quarter 2025 investor conference call. Today, I'll be discussing our first quarter results and share a brief outlook.

Jordan Poland: And with that I will now turn the call over to Jordan Jordan.

Jordan Poland: Thank you Michael and welcome everyone to Boston Pizza as first quarter 2025, Investor Conference call today, I'll be discussing our first quarter results and share a brief outlook. Michael will then summarize our key financial highlights and as usual, we'll leave time for your questions at the end of today's call.

Jordan Holm: Michael will then summarize our key financial highlights, and as usual, we'll leave time for your questions at the end of today's call. In the first quarter, Boston Pizza achieved record high first quarter total franchise sales and delivered strong same restaurant sales results. Our engaging promotions was focused on day parts and late night sectors, clearly resonated with guests, bringing excitement and energy into our restaurants across Canada. Additionally, sustained momentum in our takeout and delivery business contributed meaningfully to our strong same-restaurant sales performance. The fund posted franchise sales from restaurants in the royalty pool of $231.1 million for the first quarter, representing an increase of 4.1% versus the same period one year ago.

Jordan Poland: In the first quarter, Boston Pizza achieved record high first quarter total franchise sales and delivered strong same restaurant sales results.

Jordan Poland: Our engaging promotions, which focused on day parts and late night sectors, clearly resonated with guests, bringing excitement and energy into our restaurants across Canada.

Jordan Poland: Additionally, sustained momentum in our takeout and delivery business contributed meaningfully to our strong same restaurant sales performance.

Jordan Poland: The fund posted franchise sales from restaurants, and the royalty pool of $231 1 million for the first quarter, representing an increase of four 1% versus the same period one year ago.

Jordan Holm: Same restaurant sales was 4.4% for the first quarter and was principally due to the positive performance of promotional initiatives, sustained momentum in the takeout delivery business, and the benefit of being compared to softer performance in the first quarter of 2024. From a marketing perspective, we kicked off the first quarter with Boston Pizza's Pasta Tuesday all-month-long promotion in January, where guests enjoyed pastas every day of the week starting at just $11.99, with gourmet pastas available for $15.99. The promotion paired perfectly with the winter lineup of sporting events as we continued our partnership with Hockey Night in Canada throughout the full, regular NHL season.

Jordan Poland: Same restaurant sales was four 4% for the first quarter and was principally due to the positive performance of promotional initiatives.

Jordan Poland: Sustained momentum in the takeout delivery business and the benefit of being compared to softer performance in the first quarter of 2024.

Jordan Poland: From a marketing perspective, we kicked off the first quarter with Boston Pizza has passed the Tuesday, all month long promotion in January where guests enjoyed passes every day of the week starting at just $11.99.

Jordan Poland: <unk> passed us available for $15.99.

Jordan Poland: The promotion paired perfectly with the winter lineup of sporting events as we continued our partnership with hockey night in Canada throughout the <unk>.

Jordan Poland: Full regular NHL season.

Jordan Holm: To celebrate the NFL playoff season, we introduced an exciting NFL Pepsi promotion, offering guests special pricing on six-packs and the chance to win exclusive NFL prizes, including a trip to the Super Bowl. On February 14, 2025, we celebrated one of our most cherished traditions at Boston Pizza, Valentine's Day with heart-shaped pizzas. For every pizza sold, $1 was donated to support local charities across our communities. Thanks to the generosity of our guests, this meaningful promotion raised over $600,000 for the Boston Pizza Foundation and local charities across Canada. In terms of restaurant development, the first quarter saw no new restaurants opened or closed, and six restaurants have undergone renovations.

Jordan Poland: To celebrate the NFL playoff season, we introduced an exciting NFL Pepsi promotion offering guests special pricing on six packs and the chance to win exclusive NFL prizes, including a trip to the Super Bowl.

Jordan Poland: On February 14th 2025, we celebrated one of our most cherished tradition to Boston Pizza Valentine's day with heart shaped pizzas for every pizza sold one dollar was donated to support local charities across our communities. Thanks to the generosity of our guests this meaningful promotion raised over $600000 for the Boston Pizza Foundation.

Jordan Poland: And local charities across Canada.

Jordan Poland: In terms of restaurant development, the first quarter saw no new restaurants opened or closed.

Jordan Poland: And six restaurants have gone undergone renovations.

Jordan Holm: We have an array of exciting initiatives lined up for the second quarter of 2025 designed to drive sales and attract more guests.

Michael: We have an array of exciting initiatives lined up for the second quarter of 2025 designed to drive sales and attract more guests I'll share more details with you. Shortly after we first year for Michael about the Fund's financial performance Michael.

Jordan Holm: I'll share more details with you shortly after we first hear from Michael about the fund's financial performance.

Michael Harbinson: Michael. Thank you, Jordan. The fund posted royalty income of $9.2 million for the first quarter, compared to $8.9 million for the same period one year ago. The fund posted distribution income of $3 million for the first quarter, compared to $2.9 million for the same period in prior year. Royalty income and distribution income for the first quarter were based on 372 Boston restaurants in the royalty pool that reported franchise sales of $231.1 million. For the same period in 2024, royalty income and distribution income were based on the royalty pool of, again, 372 Boston Pizza restaurants, reporting franchise sales of $222 million.

Michael: Thank you Jordan the phone posted royalty income of $9 2 million for the first quarter compared to $8 $9 million for the same period, one year ago.

Michael: One close to distribution income of $3 million for the first quarter compared to $2 9 million for the same period in prior year.

Michael: Royalty income and distribution income for the first quarter were based on 372, Boston Pizza restaurants in the royalty pool that reported franchise sales of $231 $1 million.

Michael: For the same period in 2024 royalty income and distribution income or based on the royalty pool.

Michael: Again, 372, Boston Pizza restaurants reporting franchise sales of $222 million.

Michael Harbinson: The fund's net and comprehensive income was $6.3 million for the first quarter, compared to $8.5 million for the first quarter of 2025. The decrease in the fund's net and comprehensive income for the first quarter compared to the first quarter of 2024 was primarily due to a $3.2 million increase in fair value loss and a $0.1 million increase in current income tax expense, partially offset by a $0.7 million increase in deferred income tax recovery, and a $0.5 million increase in royalty income and distribution. The fund's cash flows generated from operating activities for the first quarter was $9.3 million compared to $9.1 million in the first quarter of 2024.

Michael: The fund's net and comprehensive income was $6 $3 million for the first quarter compared to $8 $5 million for the first quarter of 2020 for.

Michael: The decrease in the funds net and comprehensive income for the first quarter compared to the first quarter of 2024 was primarily due to a $3 2 million increase in fair value loss and $8 $1 million increase in current income tax expense, partially offset by a point $7 million increase in deferred income tax recovery.

Michael: And $8 $5 million increase in royalty income and distribution income.

The fund's cash flows generated from operating activities for the first quarter was $9 $3 million compared to $9 $1 million in the first quarter of 2024.

Michael Harbinson: The increase of $0.2 million was primarily due to an increase in the royalty income and distribution income of $0.5 million, partially offset by a decrease in changes in working capital of $0.3 million.

Michael: The increase of $2 million was primarily due to an increase in royalty income and distribution income.

Michael: $5 million, partially offset by a decrease in changes in working capital of $23 million.

Michael Harbinson: While Net Incomprehensive Income or Loss and Cash Flows from Operating Activities are both measurements 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 distribution. 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 required cash outflows, and therefore is not indicative of cash available for distribution to you. Non-cash items include the 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 tax.

Michael: While net and comprehensive income or loss in cash flows from operating activities are both measurements under <unk> accounting standards or Ifr S. 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 net.

Michael: Income contains a noncash items that do not affect the fund's cash flows, whereas cash flows from operating activities is not inclusive of all of the funds required cash outflows and therefore is not indicative of cash available for distribution to unit holders.

Michael: Noncash items include the 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 I FRS metrics of distributable cash and payout ratio to provide investors with.

Michael Harbinson: 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 Unit 1. The fund generated distributable cash of $7.3 million for the first quarter compared to $7.3 million for the same period in prior year. The nominal increase in distributable cash of 0.1% was primarily due to an increase in cash flows generated from operating activities of $0.2 million, partially offset by SIFT tax on units adjustment of $0.1 million. fund generated distributable cash per unit of $0.344 for the first quarter unchanged compared to the first quarter of 2024.

SUNS opinion more meaningful information regarding the fund's ability to pay distributions to unit holders.

Michael: Generated distributable cash of $7 $3 million for the first quarter compared to $7 $3 million for the same period in prior year the.

Michael: The nominal increase in district in distributable cash at <unk>, 1% was primarily due to an increase in cash flows generated from operating activities of <unk> $2 million, partially offset by a fifth taxes on units adjustment.

Michael: $1 million.

Michael: The fund generated distributable cash per unit.

Michael: Of $34.04 for the first quarter unchanged compared to the first quarter of 2024.

Michael Harbinson: The funds payout ratio for the first quarter was 100.2% compared to 96.8% in the first quarter of 2024. The increase in the funds payout ratio was due to distributions paid increasing by $0.3 million or 3.6%, partially offset by distributable cash increasing by a nominal amount or 0.1%. The funds 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. On a trailing 12-month basis, the funds payout ratio was 100.7% as of March 31, 2025.

Michael: <unk> payout ratio for the first quarter was 102, 2% compared to 96, 8% in the first quarter of 2020 for the.

Michael: The increase in the funds payout ratio was due to distributions paid increasing by <unk> $3 million or three 6%, partially offset by distributable cash increasing by a nominal amount or point to 1%.

Michael: The funds payout ratio fluctuates quarter to quarter, depending on the amount of distributions paid during the quarter and the amount of distributions of distributable cash generated during the quarter on.

Michael: On a trailing 12 month basis, the funds payout ratio was 107% as at March 31 2025.

Michael Harbinson: On May 8, 2025, the trustees of the fund approved a cash distribution for the period of April 1st, 2025 to April 30th, 2025 of 11.5 cents per unit, which will be which will be paid on May 30th, 2025 to unit holders of record at the close of business on May 21st, 2025. The trustee's objective in setting a monthly distribution amount is that it be sustainable. The trustees will continue to closely monitor the fund's available cash balances, given the fluctuating economic outlook.

Michael: On May eight 2025, the trustees of the fund approved a cash distribution for the period of April one 2025 to April 30th 2025 of 11, five cents per unit, which will be which will be paid on may 32025 to unit holders of record at the <unk>.

Michael: Those of business on May 21st 2025.

Michael: The trustees objective and setting a monthly distribution amount is that it be sustainable.

Michael: Trustees will continue to closely monitor the funds available cash balances given the fluctuating economic outlook and with that I'll turn the call back over to Jordan for more on the outlook Jordan.

Jordan Holm: And with that, I'll turn the call back over to Jordan for more on the outlook. Jordan. Thank you, Michael.

Jordan Poland: Thank you Michael Boston Pizza kicked off the second quarter of 2025 with a playoff promotion timed with the start of the hockey and basketball playoffs. This campaign features two new pizza flavors and several new Shareable menu items supported by National TV and digital media advertising as part of our if we planet.

Jordan Holm: Boston Pizza kicked off the second quarter of 2025 with our playoff promotion, timed with the start of the hockey and basketball playoffs. This campaign features two new pizza flavors and several new shareable menu items supported by national TV and digital media advertising as part of our If We Plan It, We Will Win campaign. Designed to elevate every aspect of Boston Pizza's sports bar experience, this promotion aims to maximize guest enjoyment during the playoff season.

Michael: We will win campaign.

Michael: Designed to elevate every aspect of Boston Pizza Sports bar experience. This promotion aims to maximize guest enjoyment during the playoffs season in.

Jordan Holm: In June, we'll also launch an updated main menu introducing new recipes across multiple categories available every day for guests to enjoy. We had strong franchise sales in the first quarter, underscoring the resilience of our business. However, we remain vigilant in monitoring the evolving landscape, trade landscape, and its potential impact on Boston Pizza restaurants and adapting the business accordingly. We remain focused on enhancing guest experiences, supporting our franchisees, and driving sustainable long-term growth through innovation and operational excellence.

Michael: In June we will also launch an updated main menu introducing new recipes across multiple categories available everyday for guests to enjoy.

Michael: We had strong franchise sales in the first quarter underscoring the resilience of our business. However, we remain vigilant in monitoring the evolving landscape trade landscape and its potential impact on Boston pizza restaurants, and adapting the business accordingly.

Michael: We remain focused on enhancing guest experiences supporting our franchisees and driving sustainable long term growth through innovation and operational excellence.

Operator: With that, I'd like to turn it back to the operator for the question and answer session.

Michael: With that I'd like to turn it back to the operator for the question and answer session. Operator. Thank you well now begin the question and answer session anyone who wishes to ask a question Press Star then one on your Touchtone phone or send the question via email to Investor Relations at Boston Pizza Dot Com.

Operator: Operator? Thank you.

Operator: We will now begin the question and answer session. Anyone who wishes to ask a question may press star then 1 on your touchtone phone or send the question via email to investorrelations at bostonpizza.com. Please note, those questions that we do not get to during the call will be answered via email immediately following the end of the Investor Relations Conference.

Michael: Please note those questions that we do not get to join the call will be answered via email immediately following.

Speaker Change: The Investor Relations Conference call.

Nick Corcoran: The first question comes from Nick Corcoran from Ackerman Capital. Please go ahead. Hey guys, a couple questions for me.

Speaker Change: The first question comes from Nick Corcoran from Acumen capital. Please go ahead.

Speaker Change: Hey, guys a couple of questions for me. The first is there's good sell through maybe the sales showed in the first quarter and how it developed in the second quarter.

Jordan Holm: The first is, there's good sales trend, maybe the sales trend in the first quarter and how it's developed in the second quarter. Oh, thanks, Nick. We won't comment on the specifics but you know we're obviously pleased with the start of the first quarter and if you look back at the fourth quarter of 2024 we had that momentum to end that year last year a record quarter for us in the fourth quarter and it flowed into the first quarter with a record quarter for our first as well and some of the things that I talked about just at the end of the call there with you know the promotional attraction that we have around sports in general it's part of the Boston Pizza DNA and we certainly have leaned into sports throughout our history but probably never as strongly as in the last few years and we are seeing good crowds turning out we had five Canadian teams going into the playoffs starting in mid April we have three fighting it out still in the playoffs there and I will say the NBA and other sports are continuing to attract guests in who want to have a social experience connected with their sports viewing so we feel good about the momentum again starting kind of in the fourth quarter of last year flowing into the first quarter results that we shared and feel that we as well.

Speaker Change: Thanks, Nick.

Speaker Change: So.

Speaker Change: We won't comment on the specifics, but you know we're obviously pleased with this started the first quarter and if you look back at the <unk>.

Speaker Change: The fourth quarter of 2024, we had that momentum to end that year last year, a record quarter for us in the fourth quarter and it flowed into the first quarter.

Speaker Change: With a record quarter for our first as well.

Speaker Change: And some of the things that I talked about just at the end of the call there with.

Speaker Change: The promotional traction that we have around sports in general is part of the Boston Pizza DNA and.

Speaker Change: We certainly have leaned in.

Speaker Change: Sports throughout our history, but probably never as strongly as in the last few years and we are seeing good crowds turning out we had five Canadian teams going into the playoffs.

Speaker Change: Starting in mid April.

Speaker Change: We have three fighting it out is still in the playoffs, there and I will say the NBA and other sports are continuing to attract guests in who want to to have a a social experience connected with their sports viewing. So we feel good about the momentum again, starting in kind of in the fourth quarter of last year flowing into the first quarter.

Speaker Change: Results that we shared.

Speaker Change: And I feel that we want to keep that going.

Speaker Change: Throughout the second quarter and into the back half of the year as well.

Nick Corcoran: That's helpful.

Speaker Change: That's helpful and with the G. S G holiday coming off midway through the first quarter was there any meaningful maybe.

Nick Corcoran: And with the GST holiday coming off midway through the first quarter, was there any meaningful, maybe... change in either guest traffic or sales after that.

Yes.

Speaker Change: Either guest traffic ourselves after that.

Speaker Change: Yeah.

Michael Harbinson: Michael, do you want to comment on impact of the GST holiday? Yeah, so the GST holiday would have been just conceptually a positive for the restaurant industry overall. For us, we believe it was a positive, but in terms of the magnitude of how positive it was, it was certainly hard to quantify, but it wasn't the main driver of our positive results for this first quarter.

Speaker Change: Michael do you want to comment on impact of the GST holiday.

Speaker Change: Yeah, so the GST holiday would've been.

Speaker Change: Just conceptually a positive for the restaurant industry overall for US we believe it was a positive but in terms of the magnitude of how positive. It was it was.

Speaker Change: It's certainly hard to quantify it but it wasn't the main driver of our positive results for this first quarter.

Michael Harbinson: And we could see that by when the holiday ended, our results kind of continued in the same range as when the holiday was in place. So it was certainly helpful and it was a positive, but it wasn't the main contributor to the positive quarter for us.

Speaker Change: And we could see that by when the holiday ended.

Speaker Change: Our results could have continued in the same range as the when the holiday was in place. So it was.

Speaker Change: Certainly helpful and it was a positive but it wasn't the main contributor to that he positive quarter for us.

Jordan Holm: And with three teams still in the playoffs, have you seen an uptick in traffic and sales from them? We do, and I've commented on the playoffs before, we love the energy and the excitement and certainly on game nights we get a benefit, sales benefit from people showing up to watch the games and we're encouraging fans to support Canadian teams regardless of whether your team is still in it, mine is not, but that helps to bring people out and that's a positive thing.

Speaker Change: So Paul and with three themes Soma layoffs have you seen an uptick in traffic and sales from that.

Speaker Change: We do and I've commented on the playoffs before we love the the energy and the excitement and certainly on game nights, we yet.

Speaker Change: A benefit sales benefit from from people showing up to watch the games and.

Speaker Change: We're encouraging fans to support Canadian teams, regardless of whether your team is still in our mind is not.

Speaker Change: But yeah, but that helps to bring people out and.

And that's a positive thing it will also acknowledged that on non game nice because we are drawing people in on you know call it Thursday and Saturday for for games.

Jordan Holm: I will also acknowledge that on non-game nights, because we are drawing people in on Thursday and Saturday for games, that the Friday can be dampened because people have just been out the night before or are planning to go out the night after. So there is some moderation but overall it's a net positive for us and we definitely like to lean into our sports part of our brand's DNA and at this time of year it's particularly helpful to bring people in and to be the destination for these big sporting events.

Speaker Change: The Friday it can be dampened because people have just been out the night before or are planning to go out Tonight. After so there is some moderation, but overall, it's a net positive for us and we definitely like to to lean into our sports part of our brand's DNA and at this time of year, it's particularly.

Speaker Change: You know helpful to bring people in and to be the destination for.

Speaker Change: These big sporting events.

Nick Corcoran: Great, and the number of restaurants remains flat. quarter over quarter.

Speaker Change: Great.

Speaker Change: The number of restaurants remained slots at quarter over quarter.

Jordan Holm: Any indication what the pipeline for new restaurants? Yeah, so we're pleased that last year we were able to open four new Boston Pizza restaurants across the country. We have irons in the fire for more development, more BP restaurants. There are under-serviced, full-service restaurant marketplaces across the country that would be very suitable for Boston Pizza locations. And we have our development team working on real estate, working on franchising and bringing those opportunities to life. And like I said, for last year, we have some in the works for this year as well. We don't give the exact number because it does depend on approvals, construction timelines, permitting.

Speaker Change: An indication of what the pipeline for new restaurants alike.

Speaker Change: Yeah. So we're pleased that to last year, we were able to open four new Boston pizza restaurants across the country, we have irons in the fire for more development more VP restaurants, there under serviced full service restaurant.

Speaker Change: Market places across the country that would be very suitable for Boston pizza locations and we have our development team working on real estate working on.

Speaker Change: Franchising and bringing those opportunities to life.

Speaker Change: I said for last year, we have.

Speaker Change: Some in the works for this year as well, we don't give the exact number because it does depend on.

Speaker Change: Approvals construction timelines permitting and there are some variations there, but overall, we're just really pleased to after a period during COVID-19 and just following COVID-19 where we.

Jordan Holm: There are some variations there, but overall, we're just really pleased to, after a period during COVID and just following COVID where we suspended development for obvious reasons, we're pleased not only with the four that we opened last year and the projects that we have in the pipeline for this year and beyond, but we're also pleased with the renovation activity. I mentioned during the first quarter of this year, we completed six restaurant renovations. That is a requirement in the Boston Pizza Franchise Agreement that restaurants are fully renovated to the updated standards every seven years. We fell a bit behind on that.

Speaker Change: Suspended development for obvious reasons, we're pleased not only with the before that we opened last year and then the projects that we have in the pipeline for this year and beyond but we're also pleased with the renovation activity I mentioned during the first quarter of this year, we completed six restaurant renovations.

Speaker Change: That is a requirement in the Boston Pizza franchise agreement that.

Speaker Change: Restaurants are fully renovated to the updated standards every seven years, we fell a bit behind on that again because of Covid, we had to suspend construction projects for a little bit of time, but we.

Jordan Holm: Again, because of COVID, we had to suspend construction projects for a little bit of time, but we had 28 completed for the full year 2024. We had six already this year. We have a bunch planned. I would imagine we'd be in the mid-30s range in terms of total renovations completed. Those are hundreds of thousands of dollars each and it's really encouraging to see franchisees moving forward with their renovations, in some cases going beyond the required scope because they want to deliver a great guest experience, get updated, put in audio-visual components or patio investments. That's another part of development that we don't talk about as much, but it certainly affects a large portion of the BP restaurants over time.

Speaker Change: We had 28 completed for the full year 2024, we had six already this year, we have a bunch planned I would imagine we'd be in kind of the mid thirty's range in terms of total renovations completed and then those are.

Speaker Change: Hundreds of thousands of dollars each and.

Speaker Change: It's really.

Speaker Change: Encouraging to see franchisees.

Speaker Change: Moving forward with their renovations in some cases a.

Speaker Change: Going beyond the required scope because they want to deliver a great guest experience get get updated put in audiovisual components or patio investments. So that's another part of development that we don't talk about as much but it certainly affects.

Speaker Change:

Speaker Change: A large portion of the BP restaurants over time so.

Nick Corcoran: Makes us great Keller, I'll pass along. Thanks, Nick. Thanks, Ted.

Speaker Change: Thanks, that's great color I'll pass along.

Nick Corcoran: Thanks, Nick Thanks, Dave.

Operator: Once again, if you have a question, please press star 1.

Speaker Change: Once again, if you have a question please press star one.

Speaker Change: Yeah.

Operator: This concludes our question and answer session.

Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Joseph to Jordan home for closing remarks.

Jordan Holm: I would like to turn the conference back over to Jordan Holm for closing remarks. Thank you, operator. As there are no further questions, we'd like to thank you for joining us today. As a proud Canadian restaurant, we appreciate your continued interest and support.

Speaker Change: Thank you operator as there are no further questions we'd like to thank you for joining us today as a proud Canadian restaurant. We appreciate your continued interest and support we look forward to reconnecting with you during our second quarter Conference call. In August 2025, Thank you and enjoy the rest of year to date.

Operator: We look forward to reconnecting with you during our second quarter conference call in August 2025. Thank you and enjoy the rest of your day. This brings an end to today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Speaker Change: This brings an end to today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.