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A and W Revenue Royalties Income Fund AWRRF


Primary Symbol: T.AW.UN

A&W Revenue Royalties Income Fund (the Fund) is a Canada-based company. The Fund is a limited purpose trust established to invest in A&W Trade Marks Inc. (Trade Marks), which through its interest in the A&W Trade Marks Limited Partnership (Partnership), owns the A&W trademarks used in the A&W quick service restaurant business in Canada. In return for licensing, A&W Food Services of Canada Inc. (A&W Food Services) to use its trademarks, Trade Marks receives royalties equal to 3% of the sales of A&W restaurants in the royalty pool. The total number of A&W restaurants in the royalty pool is 1,047. The Fund's capital management objectives are to have sufficient cash and cash equivalents to pay distributions to its unitholders, after satisfaction of its debt service and income tax obligations; provisions for general and administrative expenses; retention of reasonable working capital reserves, and amounts that may be paid by the Fund in connection with any cash redemptions of units.


TSX:AW.UN - Post by User

Comment by mydividendson Apr 02, 2020 7:38am
235 Views
Post# 30871085

RE:RE:Now the bad news

RE:RE:Now the bad newsHave more than 90+% of A&W's restaurants all of a sudden disappeared from existance? No they haven't.

Yes, approx. 200 restaurants have closed down, and those still operating have seen their demand signficantly reduced. But this has all been caused by a temporary event - 3-6 months by professional estimates - that will eventually subside. When things go back to normal, these restaurants will resume their operations, continuing to contribute to this company's royalty stream, and dividend payouts. The suspension in my view was prudent to shore up their balance sheet, as most companies are doing now. 

To say that this company is worth nothing is naive and just plain fear mongering. They own the licence and patents for the brand, have a great management team, and an appealing menu that people will continue to go to when this is all over. 

If Ive noticed one thing during this quarentine, is that people hate/ can't cook for themselves; they prefer to eat out. And restaurants like A&W, that's been performing well before this whole COVID mess, will continue to do so when this is all over. 

Your comments, again, are poor in judgment, and I hope your short positions fail long term. 
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