Boston Pizza Royalties Income Fund

This is the Chorus Call Conference Operator. Thank you for standing by. Welcome to Boston Pizza's third quarter conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded on November 9, 2023. 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. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Michael Harbinson, Chief Financial Officer. Please go ahead.

Thank you, and welcome to the call, everyone. Today, we'll be discussing the 2023 third 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 third quarter materials filed earlier today on CDAR 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's listed in our press release. 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 and its Boston Pizza restaurants in Canada. BPI pays royalty and distribution income to the fund based on franchise revenue of royalty pool restaurants. For a complete description of the fund and its business, please see the annual information form dated February 8, 2023, which was filed on CDAR.com. 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 funds 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. And with that, I will now turn the call over to Jordan. Jordan?

Thank you, Michael, and welcome, everyone, to Boston Pizza's third quarter investor conference call. Today, I'll be discussing our third quarter results and also share a brief outlook. Michael will summarize our key financial highlights, and as usual, we'll leave time at the end of today's call for your questions. We are pleased that the positive sales momentum continued through the third quarter of 2023. Looking at our financial results, the fund posted franchise sales from restaurants in the royalty pool of $240.1 million for the quarter and $698 million and $0 million year-to-date, representing increases of 4.5% and 11.2% respectively versus the same periods one year ago. Same restaurant sales was 5.3% for the quarter and 11.6% year-to-date. SRS for the quarter was principally due to an increase in average guest check. SRS year-to-date was principally due to increases in restaurant guest traffic and increases in average guest check. COVID-19 restrictions existed in most of the country during the first quarter of 2022 and part of the second quarter of 2022 that negatively impacted in-restaurant guest traffic. Those restrictions were largely eliminated during the second quarter of 2022. From a marketing standpoint, we began the third quarter of 2023 with a summer patio campaign which highlighted new food and drink innovations, and Boston Pizza invited Canadians from coast to coast to visit their local restaurant through billboards and digital media advertising, showcasing the delicious food, drinks, and atmosphere of Boston Pizza, and particularly on our patios. We launched our fall-themed menu, which featured a selection of new indulgent items in time for the fall season. Both promotions were well-received by guests, and our Kids Card promotion returned towards the end of the third quarter. This promotion is always a favorite for families, where a $5 donation to the Boston Pizza store Foundation, in exchange for a $5 donation to the Boston Pizza Foundation, they received a card for five free kids meals on future visits. Over $875,000 was raised and donated to the Boston Pizza Foundation. We ended the third quarter with a Kids Eat Free promotion for the entire month of September. This promotion resulted in an increase in guest traffic and an increase in overall sales. Turning to restaurant development, no new restaurants were opened during the period and no new restaurants were closed. Three restaurants did complete full renovations during the third quarter. Year to date, no restaurants were opened, two restaurants have been closed permanently, and 11 restaurants have completed full renovations. We have some exciting initiatives planned to drive sales in the last quarter of 2023, which I'll speak about in a moment. However, first I'll turn the call back to Michael to review the fund's financial performance.