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Boston Pizza Royalties Income Fund and Boston Pizza International Inc. Announce Third Quarter Results and October Distribution to Unitholders

November 04, 2008

For Immediate Release                                                                           Toronto Stock Exchange: BPF.UN


Fund's royalty income rises 11% to $19.5 million through the first nine months of 2008

VANCOUVER, BC, (November 4, 2008) - Boston Pizza Royalties Income Fund (the "Fund") and Boston Pizza International Inc. ("BPI") each reported today financial results for the period of July 1, 2008 to September 30, 2008 (the "Period") and the year-to-date results from January 1, 2008 to September 30, 2008 ("Year-to-date"). A copy of the management's discussion and analysis and financial statements are available at and The Fund will host a conference call to discuss the results on November 4, 2008 at 10:00 a.m. Pacific Time (1:00 p.m. Eastern Time). The call can be accessed by dialling 1-800-319-4610 or 604-638-5340. A replay will be available until November 11, 2008 by dialling 1-800-319-6413 or 604-638-9010 and entering the pin code: 4452 followed by # sign.

Same Store Sales Growth ("SSSG"), the key driver of yield growth for individual Unitholders of the Fund, was 0.3% for the Period and 0.9% Year-to-date compared to the same periods one year ago.  Franchise sales of restaurants in the royalty pool increased 9.4% for the Period and 10.8% Year-to-date versus 2007.  This growth was achieved through SSSG and the addition of 34 new restaurants to the royalty pool on January 1, 2008.

"In the third quarter we opened three new Boston Pizza restaurants and renovated another ten locations to the latest design standards" said Mike Cordoba, Chief Executive Officer. "Sales in the Period were driven by our new menu and a successful 62 Days of Summer promotion, which ran in all restaurants through July and August and included a chance to win a vacation package on each day of the event".   

Earnings before income taxes of the Fund increased by 17.5% for the Period and 19.0% Year-to-date compared to the same periods in 2007.  Earnings before income taxes of the Fund for the Period were $5.5 million or $0.352 per unit compared to the third quarter of 2007 in which earnings before income taxes were $4.7 million or $0.368 per unit. Distributions declared for the Period were $5.4 million or $0.345 per unit compared to the third quarter of 2007 in which distributions declared were $4.3 million or $0.339 per unit.  Distributions for the Period were funded entirely by cash flow from operations. No debt was incurred at any point during the Period to fund distributions.

The Trustees of the Fund are pleased to announce a monthly cash distribution to Unitholders of 11.5 cents per unit for October 2008. The distribution will be paid to Unitholders of record at the close of business on November 21, 2008 and will be payable on November 28, 2008.  The Fund periodically reviews distribution levels based on its policy of stable and sustainable distribution flow to Unitholders.   

On September 22, 2008 the Fund announced that it had received Toronto Stock Exchange ("TSX") approval of a Notice of Intention to Make a Normal Course Issuer Bid ("NCIB") through the facilities of the TSX which permits the Fund to repurchase for cancellation up to 1,336,154 units, being approximately 8.5% of the Fund's issued and outstanding units (as at September 19, 2008) and approximately 10.0% of its public float, currently comprised of 13,361,545 units.

Purchases under the NCIB commenced on October 1, 2008 and as of November 3, 2008, the Fund had acquired 142,900 units at an average price of $8.88.  The NCIB will terminate on September 30, 2009 or such earlier date that the Fund has acquired the maximum number of units under the issuer bid.  The Fund will pay the market price at the time of acquisition for any units purchased through the facilities of the TSX and all units acquired under the NCIB will be cancelled.

The Fund is a limited purpose, open-ended trust established under the laws of British Columbia to acquire indirectly certain trade-marks and trade names used by BPI in its Boston Pizza restaurants in Canada.  The trade-marks are licensed to BPI for 99 years for which BPI pays the Fund 4% of franchise revenues of royalty pooled restaurants.


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


Jul 1, 2008
Sep 30, 2008

Jul 1, 2007
Sep 30, 2007

Jan 1, 2008
Sep 30, 2008

Jan 1, 2007
Sep 30, 2007

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

System-Wide Gross Sales





Number of 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 in the earnings of the Partnership





Equity income related to BPI royalties earned by the Fund





Interest income





Earnings before income taxes





Future income taxes expense





Net earnings





Basic and Diluted Earnings per Fund unit





Distributions declared per Fund unit





Same store sales growth (SSSG)





Number of restaurants opened during period





Number of restaurants closed during period






Boston Pizza is well positioned for future growth and should continue to strengthen its position as the number one casual dining brand in Canada.  In 2008, management of Boston Pizza International Inc. anticipates that approximately 27 new locations will open across Canada.  The forecast of new restaurant openings for 2008 was lowered from the previously estimated range of 30 to 35 locations due to slower than anticipated site development experienced Year-to-date. Management will continue to pursue further development in Western Canada, while the majority of new locations are expected to be in Eastern Canada and Quebec. 

SSSG in the remainder of 2008 will be driven by the new television advertising campaign, a larger national marketing budget and an updated menu. In addition, Boston Pizza has surpassed its previously announced plans for a record 25 to 30 restaurant renovations this year, with 32 completed so far in 2008. Relatively weaker economic conditions experienced Year-to-date have had an impact on sales at Boston Pizza Restaurants and BPI management is not expecting a significant improvement in economic conditions in the near-term.

Certain information in this press release may constitute "forward-looking information" that involves 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, Boston Pizza Holdings Limited 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 information.  When used in this press release, such information uses words including "anticipate", "estimate", "may", "will", "expect", "believe", "plan" and other similar terminology.  This information reflects current expectations regarding future events and operating performance and speaks only as of the date of this press release.  Such forward-looking information involves a number of risks, uncertainties and future expectations including, but not limited to the risks and uncertainties set out in the Fund's management's discussion and analysis under "Risks and Uncertainties".  Forward-looking information is made as of the date hereof and, except as required by law, we assume no obligation to update or revise forward-looking information 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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