PIZZA PIZZA ROYALTY CORP. ANNOUNCES MAY DIVIDEND ADJUSTMENT

TORONTO, May 15, 2026 /CNW/ - Pizza Pizza Royalty Corp. (the "Company") (TSX: PZA) today announced an update regarding its business operations and its impact on the monthly dividend.

Due to continuing pressure on consumer discretionary spending, softening demand, and a highly competitive promotional environment, System Sales for the Pizza Pizza and Pizza 73 brands have experienced a decline. This decrease in sales has led to a reduction in the Company's royalty income.

In response to these market conditions, the Company has announced its monthly dividend will be reduced from $0.0775 per share to $0.0675 per share beginning with the May 2026 dividend. The dividend will be payable to shareholders of record at the close of business on May 29, 2026, and will be paid on June 15, 2026. For tax purposes, the 2026 dividend will be considered a taxable eligible dividend.

"The Board has made the decision to adjust the dividend to better align with current royalty income levels," said Neil Lester, Chair of Pizza Pizza Royalty Corp. "While we are closely monitoring the factors impacting System Sales across all segments, the use of the Company's cash reserves over the past two years was a trend that could not be sustained indefinitely. This proactive measure ensures the Company remains on a stable financial footing while we navigate this challenging economic landscape."

The Company will continue to monitor System Sales and royalty income, and will consider further changes to the monthly dividend taking into account the duration and impacts of the economic landscape on restaurant operations, and the timing and pace of economic recovery in the markets that Pizza Pizza and Pizza 73 serve.

www.pizzapizza.ca and www.pizza73.com or www.sedar.com.

SOURCE Pizza Pizza Royalty Corp.

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