A&W Revenue Royalties Income Fund reports strong earnings for Q3

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A&W ($TSX:AW.UN) is a Canadian company that operates and franchises A&W restaurants. The fund has a strong track record of delivering consistent and growing distributions to its shareholders.

Earnings

This represents a 6.2% increase in total revenue and a 15.3% increase in net income compared to the same period last year. This growth is largely due to the continued success of A&W’s restaurant franchisees across Canada, which have generated strong sales and profitability. The earnings report is good news for A&W shareholders, as it indicates that the company is on track to achieve its financial goals for the year. A&W Revenue Royalties Income Fund is a publicly traded company that owns the A&W Canada franchise system.

Share Price

A&W Canada’s earnings were also helped by new restaurant openings and higher royalties from existing restaurants. Despite the strong earnings, the stock was down 1.5% from its previous closing price of CA$34.9, as investors may have been expecting even stronger results. Nevertheless, the fund’s earnings are a positive sign for the future, and investors may want to consider buying the stock on any further weakness.

VI Analysis

The fund invests in the A&W trade-marks and related properties in Canada. The fund is managed by A&W Food Services of Canada Inc. According to VI Risk Rating, A&W REVENUE ROYALTIES is a high risk investment in terms of financial and business aspects. VI App has detected 2 risk warnings in income sheet, balance sheet. Register with us to check it out.

Summary

The Fund’s earnings for the quarter were driven by strong same-store sales growth and new store openings. Same-store sales growth was driven by increased traffic and higher average spend per customer. New store openings also contributed to the Fund’s earnings growth, as they typically take several quarters to ramp up to full potential.

The Fund’s strong earnings for the quarter are a result of our continued focus on driving same-store sales growth and expanding our store base. We are pleased with our progress to date and remain confident in our ability to generate long-term value for our unitholders.