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Boston Pizza Royalties Income Fund & Boston Pizza International Inc. Announce 2006 Third Quarter Results and October Distribution

November 07, 2006

For Immediate Release                                                                           Toronto Stock Exchange: BPF.UN


Higher same store sales and new restaurant openings drive royalty income up 23% over the year ago period VANCOUVER, BC, (November 7, 2006) - Boston Pizza Royalties Income Fund (the "Fund") and Boston Pizza International Inc. ("BPI") each reported financial results today for the fiscal period from July 1, 2006 to September 30, 2006 (the "Period") and the year-to-date results from January 1, 2006 to September 30, 2006 ("Year-to-date").  A copy of the combined 2006 third quarter report is available at and

The Fund reported another strong quarter with same store sales growth ("SSSG"), the key metric for revenue growth of the Fund, of 6.8% for the Period and 8.9% Year-to-date.  Franchise sales by restaurants in the royalty pool were $128.3 milllion, a $23.7 million increase over the same period last year. Year-to-date franchise sales by royalty pool restaurants were $362.1 million, $71.1 million higher than in 2005. Royalty income for the Period was $5.1 million, an increase of 22.7% versus the third quarter of 2005. On a Year-to-date basis, royalty income was $14.5 million, up 24.4% compared to 2005.

As a result of these continued positive results, Trustees of the Fund approved the monthly cash distribution of 10.9 cents per unit for October 2006. The distribution will be paid to unitholders of record at the close of business on November 21, 2006 and will be payable on November 30, 2006.  The Fund periodically reviews distribution levels based on its policy of smoothing the distribution flow to unitholders. Monthly distributions have been increased three times Year-to-date and a total of ten times since the Fund's inception. The current distribution translates to an annualized rate per unit of $1.31, an increase of 7.9% Year-to-date and 30.8% since the Fund's inception.  

During the Period, Boston Pizza continued to expand its presence across Canada opening six new restaurants, with no restaurants being closed.  Subsequent to the Period an additional five restaurants were opened while one restaurant was closed bringing the total as of November 6, 2006, to 253 restaurants across Canada of which 226 restaurants are in the royalty pool. Royalties paid to the Fund are adjusted annually to include the franchise revenues of all new Boston Pizza restaurants opened prior to December 31 of each year.

"Boston Pizza continues to increase sales in our existing stores and to add new locations. This marks our seventeenth quarter of consecutive increases in same store sales going back to the Fund's initial public offering in 2002. We are very proud to have achieved a milestone recently by opening the 250th Boston Pizza restaurant, which is located in Morden, Manitoba. With our continued focus on enhancing the guest experience, our commitment to franchise profitability and the concept's proven success in cities from coast to coast, we are confident that Boston Pizza will further strengthen its position as Canada's number one casual dining brand." said Mike Cordoba, Chief Executive Officer of BPI.

The Fund will hold a conference call to discuss third quarter results on November 7, 2006 at 11:00 a.m. Pacific Time (2:00 p.m. Eastern Time). The call can be accessed by dialling toll-free 1-866-249-5221 or (416) 644-3419. A replay will be available until November 16, 2006, by dialling toll-free 1-877-289-8525 or (416) 640-1917 Passcode: 21207206 followed by the number sign.


The following table sets out selected historical information and other data from the financial statements of the Fund and the Boston Pizza Royalties Limited Partnership (the "Partnership"), which should be read in conjunction with the attached consolidated financial statements of the Fund.


Jul. 1, 2006
Sep. 30, 2006

Jul. 1, 2005
Sep. 30, 2005

Jan. 1, 2006
Sep. 30, 2006

Jan. 1, 2005
Sep. 30, 2005

(in thousands of dollars - except restaurants and per unit items)

Restaurants in Royalty Pool





Franchise Sales reported by restaurants in Royalty Pool





Royalty income - 4% of Franchise Sales of Royalty Pool Restaurants 





Partnership administrative and interest expenses 





Partnership earnings for the period before undernoted 





BPI's interest 





Equity income related to BPI royalties earned by the Fund 





Interest income





Net earnings





Earnings per Fund unit





Diluted  earnings per Fund unit 





Distributions declared per Fund unit





Same Store Sales Growth





Number of restaurants opened during Period 





Number of restaurants closed during Period






In 2006, BPI management anticipates that approximately 40 new locations will open across Canada.  In addition, BPI management believes that in 2006 the organization can continue to deliver industry-leading SSSG from national and local marketing programs and BPI's unique renovation program that requires each location to renovate every seven years.  BPI anticipates up to 28 locations will conduct major renovations this year which will contribute to Boston Pizza delivering industry-leading SSSG.  Management will continue to pursue further development in Western Canada, Ontario, and the Atlantic Provinces while aggressively pursuing additional opportunities in Quebec. Boston Pizza is well positioned for future growth and should continue to strengthen its position as the number one casual dining brand in Canada. 

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.  The trademarks are licensed to BPI for 99 years for which BPI pays the Fund 4% of franchise revenues of royalty pooled restaurants.  As of January 1, 2006 there were 226 restaurants in the royalty pool. 

Certain statements in this quarterly report may constitute "forward looking" statements that involve known and unknown risks, uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the Fund, the Boston Pizza Holdings Trust, the Partnership, BPI, Boston Pizza restaurants, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.  When used in this quarterly report, such statements use such words as "may", "will", "expect", "believe", "plan" and other similar terminology.  These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this quarterly report.  These forward looking statements involve a number of risks, uncertainties and future expectations including, but not limited to the risks and uncertainties set out in the Fund's management discussion and analysis dated November 6, 2006 in "Risks & Uncertainties" and in the Fund's Annual Information Form under "Risks Related to the Structure of the Fund".  The quarterly report discusses some of the factors that could cause actual results to differ materially from those expressed in or underlying such forward looking statements.  Forward looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.

The Trustees of the Fund have approved the contents of this press release.


Boston Pizza Royalties Income Fund
Jordan Holm - Vice President of Investor Relations
Tel: 604-303-6083

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