KEG Royalties Income Fund T.KEG.UN

Great inflation play in my opinion.

[guppyworld]

I really like the keg. Food inflation play. I think it could perform like Pizza Pizza over the coming year.

 

They get a fixed % of revenues. So food inflation really helps them. They aren't really affected by the cost of the food inflation. Only the revenue side as long as menu prices go up. So no margin issues. And alberta is finally booming with the oil prices. More disposable income. And a huge chunk of their restaurants are in Alberta.

 

I am hearing from my family (but can't confirm myself) in Alberta that the restaurants are pretty packed with the lifting of covid restrictions.

[logicandinertia]

Alberta is the 3rd most important province for The Keg.   Of the 106 total restaurants, the breakdown is: Ontario - 42% Alberta - 16% BC - 17% Quebec - 5% Saskatchewan - 3% Manitoba  - 4% Maritimes - 4% United States - 9%

[guppyworld]

Thanks for that! To be honest, I thought Alberta was a larger part of their revenue, but still quite a chunk.   I like your comment about seniors.  My elderly parents have been yearning to go to the Keg, I told them I would pay for it with some of my investment gains.  But they haven't been to a restaurant in ages due to fear of covid.  Their fears are starting to