Sir Royalty Income Fund T.SRV.UN

RE:RE:RE:RE:RE:what happened?

[logicandinertia]

Some good points .   We are already seeing the drinks promotions at jack astors ($5 for 18 oz draft, 1/2 price wine bottles and $4.50 pints) in order to help traffic .   As holders of the royalty, I care more about top line , but recognize that Fowler has to make a reasonable return .  Not sure what can be done about Canyon .  There are only 6 Canyons so 10 percent of total restaurants .   Most have good locations so won't be a disaster for the pool as a whole.   Another Reds will be added to the pool on January 1st.  

since Jan 1/2012 up to end of 2019, the company will have returned $68 million to shareholders .  This compares to the current market cap of $88.2.   The reduced distribution of $1.05 per share equals $8.82 million, or a 10 percent yield at current share price.

While I think delivery has impacted business, I believe prices got too high and dissuading customers from going too often.   A couple of beers and a appetizer was $50.   This is being dialed back somewhat , which should offset the negative trends over time.  Lastly, it all comes down  to locations and I'm comfortable that SIR holds some attractive ones.   

note that Keg parent company has been buying units of the royalty trust at a 7 percent yield in the open market.  One wonders if other corporates would see value in the 10 percent yield at SIR.  Time will tell.   A good restaurant company doesn't become a bad one overnight...   good luck.