KEG Royalties Income Fund T.KEG.UN

Alternate Symbol(s): KRIUF

Consumer Cyclical Restaurants

The Keg Royalties Income Fund (the Fund) is a limited-purpose open-ended trust. The Fund’s objective is to provide consistent monthly distributions to unitholders at the highest sustainable level. The Fund, through its subsidiary The Keg Rights Limited Partnership (the Partnership), purchased The Keg trademarks and other related intellectual property (the Keg Rights) from Keg Restaurants Ltd. (KRL). The business of the Partnership is the ownership of the Keg Rights and, through a License and Royalty Agreement with KRL to exploit the use of the Keg Rights and the collection of the royalty payable under the License and Royalty Agreement equal to 4% of gross sales of Keg restaurants included in a specific pool (the Royalty Pool). KRL’s principal activity is the operation and franchising of Keg steakhouse and bar restaurants in Canada and the United States. The Keg GP Ltd. is the general partner of the partnership and administrator of the Fund.

TSX:KEG.UN - Post by User

KEG Royalties Income Fund > Third Quarter 2021 Results

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Comment by apollojeticon Nov 11, 2021 11:37am

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Post# 34115143

RE:RE:RE:Third Quarter 2021 Results

Not sure they will slam the door on big events. Ontario;s covid numbers today are back to what they were in early October which is concerning and other provinces are seeing an uptick but no need to panic yet. Watching hospitalizations as we move into colder weather and winter.

Most investors feel we are out of the woods but Gov't can turn the other direction quickly if cases continue to climb. And restaurants and indoor places like movie theatres ect get hit the hardest.

Uncertainty will be here to stay for a while as we see with trading. We need full restaurants for Christmas to pad the coffers, especially after seeing the payout ratio of 134% in Q3 and 127% year to date. Any restrictions or a nervous public will change all the income assumptions and distributions gong forward.

This too shall pass, but when. The statement below should have the share price moving higher, but it is very weak. Meanwhile SRV.UN is hitting a new high.

“We believe the third quarter represents a very strong indication that The Keg can expect our sales levels to return to pre-COVID levels and beyond.” said David Aisenstat, CEO of The Keg. “As the last of the restaurant capacity restrictions are eliminated, and labour shortages ease, we remain confident that future sales will continue to improve. We thank our amazing Keggers for their enthusiasm as they welcome our equally enthusiastic guests back to enjoy the legendary Keg hospitality.” added Aisenstat.

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