TRADING SYMBOL: TSX: AW.UN
VANCOUVER, BC, Feb. 28, 2024 /CNW/ –
Royalty income increased by 5.3% year-over-year and 5.1% in Q4 2023.
Royalty Pool Same Store Sales Growth(i) was +2.7% for the year and +2.1% for Q4 2023.
FOURTH QUARTER 2023 RESULTS
A&W Revenue Royalties Income Fund (the “Fund”) and A&W Food Services of Canada Inc. (“A&W Food Services”) today reported the Fund’s results for the fourth quarter ended December 31, 2023 which are expected to be filed today on SEDAR+ at www.sedarplus.ca. The Fund will hold a conference call to discuss the results today, Wednesday, February 28, 2024 at 1:00 p.m. Pacific Time (4:00 p.m. Eastern Time).
The call will be webcast live and may be accessed at https://events.q4inc.com/attendee/274908459. Participants who wish to ask questions or are unable to join via webcast may dial-in by calling toll-free 1-888-259-6580 or 1-416-764-8624 and by using the conference ID 74686768 or quoting “A&W Revenue Royalties” when prompted by the operator. For those unable to participate in the live call, a replay will be made available for one year at https://events.q4inc.com/attendee/274908459.
“We are pleased with the continued Royalty Pool Same Store Sales Growth(i) in the quarter resulting in 2.7% Royalty Pool Same Store Sales Growth(i) for the year, particularly in comparison to very strong quarterly performance in 2022, said Susan Senecal, President and CEO of A&W Food Services. “Food Services believes that its mission “Together, to excite Canada’s most avid burger lovers, wherever they are, with the best tasting burgers they crave, earning even more of their visits and making A&W restaurants even more successful” will help it to continue to grow and better position it to withstand the risks associated with the current economic conditions”.
Royalty income for the fourth quarter of 2023 increased by 5.1% in Q4 2023 and 5.3% year to date, as compared to the comparable periods in 2022. The royalty income for Q4 2023 was $17,045,000 and is based on gross sales reported by A&W restaurants in the Royalty Pool(i) of $568,161,000, compared to royalty income of $16,218,000 and gross sales reported by A&W restaurants in the Royalty Pool(i) of $540,598,000 for the fourth quarter of 2022. Annual royalty income was $54,962,000 based on gross sales reported by A&W restaurants in the Royalty Pool(i) of $1,832,069,000, compared to royalty income of $52,181,000 and gross sales reported by A&W restaurants in the Royalty Pool(i) of $1,739,377,000 for 2022.
The increase in royalty income for the quarter and year to date period was driven by Royalty Pool Same Store Sales Growth(i), which was +2.1% for the quarter and +2.7% year to date, and the gross sales from the 22 net new restaurants added to the Royalty Pool on January 5, 2023. The increase in the quarter was also impacted by there being one additional day in the fourth quarter of 2023 as compared to the fourth quarter of 2022. Royalty Pool Same Store Sales Growth is based on an equal number of days in the quarter and year.
The Royalty Pool Same Store Sales Growth in both the quarter and year to date period was primarily driven by growth in average check size due to industry-wide inflation on goods, services and labour, a rebound in sales at shopping center and urban locations and innovative new menu items such as the A&W Brew Bar™.
FINANCIAL RESULTS
(dollars in thousands except per unit amounts)
Period from
Sep 11, 2023 to
Dec 31, 2023
Period from
Sep 12, 2022 to
Dec 31, 2022
Period from
Jan 1, 2023 to
Dec 31, 2023
Period from
Jan 1, 2022 to
Dec 31, 2022
Royalty Pool Same Store Sales Growth(i)
2.1 %
4.3 %
2.7 %
7.4 %
Number of restaurants in the Royalty Pool
1,037
1,015
1,037
1,015
Gross sales reported by A&W restaurants in the
Royalty Pool(i)
$568,161
$540,598
$1,832,069
$1,739,377
Royalty income
$17,045
$16,218
$54,962
$52,181
General and administrative expenses
$452
$476
$961
$983
Term loan and other interest (net)
$332
$530
$1,204
$2,113