Today I bought one of the most hated stock on the TSX. You probably guessed it, it’s
Pizza Pizza Royalty. I want to build a
solid position in Pizza Pizza and the recent slide from $12 to $9 opened up a new buying opportunity for me to buy more shares. So I bought
100 shares for $9.49 per share and called it a day.
Problems with Pizza Pizza
When I think of Pizza Pizza, there could be a few reasons why the market doesn’t like it.
First: Minimum wage hike in Ontario from $11 to $14 – hurts the bottom line.
Second: Increased pizza prices – less traffic now.
Third: Payout ratio is 106%.