Highlights

• Pizza Pizza Royalty lowered its monthly Dividend to C$0.0675 from C$0.0775, starting with the May 2026 ex-date.

• Twelve monthly payments with ex-dates in the trailing year total C$0.87 per share across both rates.

• That trailing total equals a 7.89% Yield on the C$11.03 closing price recorded on 3 November.

• At the current monthly rate, the indicated annual payout of C$0.81 implies a 7.34% yield for holders.

Restaurant royalties are supposed to be the steady corner of the food business, which is why the 2026 reset at Pizza Pizza Royalty Corp. (TSX:PZA) stood out. The company collects a royalty on sales from restaurants in its royalty pool, and in the spring it trimmed its monthly payout by about 13%, a lower level it has kept ever since.

The reset matters because the Business is designed to pass most of its royalty income straight through to shareholders. When the monthly figure moves, it tells holders something about the restaurants behind it.

A cut, then a steady line

From November 2025 to April 2026, every monthly dividend was C$0.0775 per share. The May payment, ex-dated 29 May and paid on 15 June, came in at C$0.0675, and each month since has matched it. The most recent payment in the record went ex on 30 October 2026. The reduction equals one cent per share each month, or C$0.12 a year.

The October dividend was announced on 22 October, together with the timing of the company's third-quarter 2026 results. Monthly declarations mean the board revisits the payout frequently, so any further change would show up quickly.

Counting the trailing year

Inside the window from 12 November 2025 to 11 November 2026 there are 12 ex-dates: six at the old rate and six at the new one. Together they total C$0.87 per share, a trailing yield of 7.89% on the C$11.03 close of 3 November 2026. Spread across a full year, the old rate would have delivered C$0.93 per share, so the cut removes C$0.12 of annual income for each share held.

The indicated yield, built on 12 payments of C$0.0675, is lower at 7.34% because it reflects only the reduced rate. As the higher payments from late 2025 and early 2026 fall out of the window, the trailing figure will drift down towards it.

Price moves since the reset

Shares changed hands at C$11.07 in mid-September and ended the 3 November session at C$11.03, having opened at C$10.37 and touched C$11.15 during the day. An earlier data set showed a C$10.63 price and an 8.50% trailing yield; the higher price since then compresses both yield measures.

On the latest daily record, roughly 124,000 shares changed hands on 3 November, a session in which the price rose by about 6% from its opening level.

What investors will track

The royalty structure ties the payout to sales generated by the restaurants in the pool, so same-store sales growth is the figure to follow in each quarterly report. The coming results release will show whether sales trends support the current C$0.0675 monthly rate.

Restaurants trading under both the Pizza Pizza and Pizza 73 banners contribute to the royalty pool, which is adjusted each year to add new locations and remove closed ones. The monthly declarations that follow the third-quarter results will be the first test of whether the board holds the line at the reduced level.