Is Pizza Pizza (PZA) halal?

Pizza Pizza Royalty Corp. (TSX: PZA) earns its entire revenue as royalties on gross restaurant sales that include pork-derived menu items — so it fails the business-activity gate: FAIL.

The two-gate Shariah screen

Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).

Gate one: the business — pork in the royalty base

Pizza Pizza Royalty Corp. sells no pizza itself. Indirectly through a partnership, it owns the Pizza Pizza and Pizza 73 trademarks, trade names, and other intellectual property, and its sole business is collecting royalties of 6% of Pizza Pizza and 9% of Pizza 73 gross system sales from 814 franchised quick-service restaurants across Canada (per its SEDAR annual information form). The brand's menus show no alcohol — drinks are categorized as 'Non Alcoholic Drinks' — but they do include pork-derived toppings (pepperoni, bacon, ham). Because the royalty is a fixed percentage of gross restaurant sales, every pork item sold contributes directly to the company's royalty income. Under AAOIFI-style business screens, that fails gate one.

Gate two: the ratios — both pass, moot given the business failure

PZA carries a C$47 million bank loan (Q2 2026). Against a market cap of about C$359.4 million — about 33.8 million fully diluted shares (including exchangeable shares held by Pizza Pizza Limited) at the C$10.63 TSX close on September 28, 2026 — debt-to-market-cap is about 13.1%, under the ~33% ceiling. Interest income was C$20,000 in Q2 2026 against C$9,980,000 of royalty income — about 0.2%, well under ~5%. Both ratio gates pass, but they are moot given the business-gate failure.

What other screeners say

Zoya has no published PZA stock page and Musaffa has no PZA coverage page — neither covers the ticker. ShariaPortfolio does not publish Canadian-name analyses itself; its free stock screener is powered by MuslimXchange, which does cover PZA.TO and flags it as 'currently not Shariah compliant' (updated September 10, 2026; the detailed per-standard breakdown is behind its membership paywall). That third-party view is consistent with this screener's conclusion.

The bottom line

This screener gives Pizza Pizza Royalty Corp. (TSX: PZA) a FAIL. Royalties computed on gross restaurant sales that include pork-derived menu items fail the business-activity gate at step one. The ratios pass (about 13.1% debt-to-market-cap; about 0.2% interest income), and no alcohol, banking, insurance, gambling, or weapons involvement is disclosed — the failure is the pork footprint in the royalty base. Snapshot dated September 29, 2026; re-checked quarterly after earnings.

Sources

Frequently asked questions

Is Pizza Pizza stock halal?

No — Pizza Pizza Royalty Corp. (TSX: PZA) fails the business-activity gate. The company's sole business is collecting royalties of 6% of Pizza Pizza and 9% of Pizza 73 gross restaurant system sales, and the franchised restaurants sell pork-derived menu items (pepperoni, bacon, ham) — so the royalty income stream includes pork revenue. Its ratio screens pass (about 13.1% debt-to-market-cap; about 0.2% interest income), but the business gate fails. MuslimXchange, which powers ShariaPortfolio's screener, independently flags PZA.TO as 'currently not Shariah compliant' (September 2026). Consult a qualified scholar.

Why does the pork menu matter for PZA's screener?

Because royalties are calculated on gross restaurant sales, not on a segregated 'halal' subset: every pepperoni pizza, bacon panzerotti, or ham item sold at the 814 franchised Pizza Pizza and Pizza 73 restaurants contributes directly to the company's royalty income. The company's own annual information form states the partnership's revenue is 'based on collecting a 6% royalty on Pizza Pizza restaurant System Sales and 9% on Pizza 73 restaurant System Sales.' Under AAOIFI-style business screens, material involvement in pork products fails gate one.

What are PZA's debt and interest-income figures?

PZA carries a C$47 million bank loan (Q2 2026). Against a market cap of about C$359.4 million (about 33.8 million fully diluted shares, including exchangeable shares, at the C$10.63 TSX close on September 28, 2026), debt-to-market-cap is about 13.1% — under the ~33% ceiling. Interest income was C$20,000 in Q2 2026 against C$9,980,000 of royalty income — about 0.2%, well under ~5%. Both ratio gates pass; the failure is the business-activity gate.

What does Pizza Pizza Royalty Corp. do?

It sells no pizza itself. Pizza Pizza Royalty Corp., indirectly through a partnership, owns the Pizza Pizza and Pizza 73 trademarks, trade names, and other intellectual property, and its sole business is collecting royalties of 6% of Pizza Pizza and 9% of Pizza 73 gross system sales from 814 franchised quick-service restaurants across Canada (plus an international franchising business). No alcohol appears on the brand's menus, which categorize drinks as 'Non Alcoholic Drinks'; the menus do include pork-derived toppings (pepperoni, bacon, ham).

What do Zoya, Musaffa, and ShariaPortfolio say about PZA?