RE:best qtr ever?A few things really caught my eye.
1. Same store sales growth in double digits. This strongly implies that the Beyond Burger really did click with the masses. Anecdotally, since the burger came out, A&W's social media posts from customers have been overwhelmingly positive. If you're on Twitter, you'll know that a company's feed is usually filled with negative comments. This alone speaks volumes. Millennials, vegans, conscious meat eaters - they all love it!
2. First time we've hit $10m in quarterly royalties outside of a Q4. Next Q, we will most likely break $400m in quarterly system sales for the first time ever.
3. Payout ratio is under 80%. Even with today's dividend increase, they've got the capacity for a large increase, assuming sales stay where they are. $0.15/month is closer than you think.
4. We will be adding 25-30 new restaurants in January, which will add another 4% boost to sales next year, before considering a positive SSS. Of course, we will issue shares for those new restaurants, which will offset some of the gains.
These are my initial thoughts. This team knows what they're doing and Susan Senecal is a fantastic CEO. Hands down one of the better management teams in the QSR space.