Jimmy Mengel,
Director of Customer Experience
May 6, 2025
“Pizza makes me think that anything is possible.”
- Henry Rollins
They say there are only two certain things in life: death and taxes.
But they forgot something…
Pizza!
It remains the single-most popular food on Earth. Whether you’re at a kid’s birthday party, hosting buddies for a football game or just having a lazy Friday evening, you can bet your bottom dollar that a hot pie of pizza will be served.
It doesn’t matter how the economy is doing. In fact, during downturns like we’re witnessing today, pizza is flying off the shelves and being delivered at a higher rate than usual. When news of a possible recession hit this year, sales of frozen pizza soared.
Last year, the U.S. frozen pizza industry brought in $6.5 billion in revenue – which was even higher than before the COVID pandemic. Overall, Americans inhale 3 billion pizzas per year. The average American is eating nearly 40 pounds of pizza annually.
That’s $46 billion in total per year.
There is big money in pizza. So much that the Oracle of Omaha himself has doubled down on cheese, crust and sauce.
Buffett’s Pizza Buffet
Warren Buffet is well known for making his fortune in less-than-healthy food investments like Coca-Cola, McDonald’s and Dairy Queen.
He hasn’t let up.
In his biggest move before his recent retirement announcement, Buffett’s Berkshire Hathaway acquired 1.3 million shares of Domino’s (NASDAQ: DPZ) stock for $549 million. That doubled their previous investment.
In the last decade, Domino's shares have delivered a return of 430%.
However, that pizza party looks a little floppy over the past five years. I have a way better recommendation…
Pizza, Pizza So Nice to Meet Ya
Now you know that there is big money in pizza – and it is basically recession-proof. You certainly could follow Mr. Buffett’s lead and buy Dominos.
However, you should check out this chart comparing Domino’s to my recommendation, Pizza Pizza Royalty Company (OTC: PZRIF).
The results speak for themselves.
Pizza Pizza Royalty Company (OTC: PZRIF) is a Canadian company that operates primarily through its two brands, Pizza Pizza and Pizza 73. In Canada, pizza is every bit as popular as poutine.
Pizza Pizza is unique because it operates as a royalty-based income trust structure. They do not operate the restaurants directly, they simply take payments from their franchisees. And they send those payments directly to investors with monthly dividend payments.
Those payments are an astounding 6.45%. The company maintained those monthly dividends for a total of $22.9 million in 2024 with a 110% payout ratio. They’ve also boosted that dividend seven times in the last three years alone.
That means you get a monthly delivery of profits - with extra toppings.
Last year Pizza Pizza added 31 new restaurants and plans to grow that by 4% this year. They have also boosted their online ordering capabilities and added health-conscious options to expand their reach.
I’m a massive fan of pizza, but dividends even more so. When you can get a monthly haul of four times the average S&P dividend, you really can’t go wrong.
No matter what happens in our “trade war” with Canada, the pizzas will continue to be delivered every week. I’d surmise that there will be even more sales from Canadian pizza companies like Pizza Pizza in protest of President Trump’s hostility.
In fact, they are launching “Reverse Tariffs”— offering 25% off regularly priced pizzas (25% being the proposed tariff on imported goods from Canada) to help Canadians during the upheaval. Customers can apply the code ‘ReverseTariff’ when placing an order online.
They also have a funny tagline for the campaign: "Hey tariffs, eat this."
With their expansion, monthly dividends and anti-tariff flexing, Pizza Pizza will be a breadwinner for years to come.
So do yourself a favor and pick up a slice of their stock.
Godspeed,
Jimmy Mengel
Director of Customer Experience, Daily Profit Cycle