Stock Analysis: Pizza Pizza Could Gain 10.47% This Year

The company was founded in 1967 and is headquartered in Toronto, Canada.

Pizza Pizza Royalty Corp. (PZRIF) owns the trademarks, trade names, and other intellectual property of Pizza Pizza Limited in its Pizza Pizza and Pizza 73 restaurants and international franchising business.

Three key data points gauge PZRIF (or any dividend paying entity):

(1) Price 

(2) Dividends

(3) Returns

Those three keys also indicate if any company has made, is making, and will make money.

PZRIF Price

Pizza Pizza Royalty single share price fell $0.21 (or about 20%) from $10.49 to $10.28 in the past year, per Wednesday’s morning market report.

No analysts cover the stock so no  one year price targets are available.  However 5 years of price history indicate an average  $0.396 one year price gain, which I’ll use to calculate returns after I discuss dividends.  

PZRIF Dividends

Pizza Pizza Royalty has paid $0.0567 monthly dividends since September 2005.  The most recent M payout of $0.0567 is payable May 15 (to shareholders on record as of April 30) for a $ $0.6804 forward annual dividend yielding 6.62% 

PZRIF Returns

Putting it all together, as of May 12 a possible gross gain of $1.0764 was projected by the $0.396 per share annual gain added to the $0.6804 forward looking annual dividend.

A little under $1000 invested in PZRIF at Wednesday’s $10.28 opening share price would buy 97 shares which multiply the $1.0764 gross gain to $104.71 for the coming year, or 10.47%.

My dividend dogcatcher rule is to only buy initial shares of a dividend stock that pay an annual dividend (from $1000 invested) that is more than the cost of a single share.

Pizza Pizza’s annual dividend from $1K invested is $66.20. So Pizza Pizza Royalty Corporation shows a dividend from $1,000 invested just over 6.4 times its $10.28 single share price of Wednesday.

The exact track of PZRIF’s future share price and dividend will entirely be determined by market action and company finances. 

Remember the best way to track stock performance and dividend payments is through direct ownership of company shares.