Boston Pizza Royalties Income Fund

Hello, this is the Chorus Call Conference Operator. Thank you for standing by. Welcome to Boston Pizza's fourth quarter conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded on February 14, 2024. 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 investorrelationsatbostonpizza.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. Today we'll be discussing the 2023 fourth quarter results for 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 fourth quarter materials filed earlier today on CDAR Plus, 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 is 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 revenues of royalty pool restaurants. For a complete description of the fund and its business, please see the annual information form dated February the 13th, 2024, which was filed on cdarplus.ca. Before I turn the call over to Jordan Holm, President of BPI, I'd 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 turn the call over to Jordan.

Thank you, Michael, and welcome everyone to Boston Pizza's fourth quarter investor conference call. Today, I'll be discussing our fourth quarter results and share a brief outlook. Michael will then summarize our key financial highlights. As usual, we'll leave time for your questions at the end of today's call. We are pleased that our positive sales continued fourth quarter of 2023. Turning to our financial results, the fund posted franchise sales from restaurants in the royalty pool of $227.7 million for the quarter and $925.7 million for the year, representing increases of 0.2% and 8.3% respectively versus the same periods one year ago. Same restaurant sales was up 0.6% for the quarter and 8.7% for the year. SRS for the quarter was principally due to an increase in average guest check due to menu pricing. SRS for the year was principally due to increases in restaurant guest traffic compared to 2022 and average guest check due to a combination of menu pricing and larger per guest ordering levels. COVID-19 restrictions existed in most of the country during 2021 and the first quarter of 2022 and a 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 fourth quarter of 2023 with our Hockey Night in Canada partnership, which was supported by significant TV, digital, and social media channels, along with in-restaurant promotions at participating Boston Pizza restaurants across the country. In addition to this, we launched our 2023 holiday menu, which featured a selection of innovative items along with the a promotion bonus card offer. Guests also received a free Ferrero Rocher three pack of chocolates with the purchase of any qualifying holiday menu item. We had the highest gift card sales in 2023 than we've had in any previous year, helped by a successful year-end holiday gift card promotion. Turning to restaurant development, one restaurant opened, four restaurants were closed, and nine restaurants were renovated during the quarter. During the year, One restaurant opened, six restaurants were closed, and 20 restaurants were renovated. The quarter saw the first opening of a new Boston Pizza restaurant since 2020. We have some exciting initiatives planned to drive sales in the first quarter of 2024, which I'll speak about in a moment. But first, I'll turn the call back to Michael for a review of the fund's financial performance.