RE:Time to take some profit before U regret itA&W has obviously been taking market share from competitors. A&W has a unique product and a irreplaceable brand. SSSG is at record highs. A recession will affect full service restaurants and expensive meal dellivery services. A&W will not be immune but they are very well positioned. Consider all their metro downtown locations where city dwellers can easily pick-up dinner to go. They continue to expand their menu and customers are delighted.
This is a continued growth story. Sit back and collect the dividend. This stock traded at $42 a few years back. I believe it will exceed those highs again. As interest rates drop or stagnate, this stocks 4.4% yield will easily exceed any bond and entice yield focused investors.
Also consider the take-out possibility. A&W may be acquired. It's unclear if that would include the royality component (Cara acquired The Keg but not the royality). FWIW I also think Cara will eventually acquire The Keg royality fund. Is A&W on their radar? Would A&W operating business sell itself but not the royality? I'm interested in people's thoughts on this.
Looking at the charts it seems to me that A&W has had a very nice run but it doesn't seem overbought yet. I don't see any signifncant gap ups that haven't been back filled. Seems like steady upwards growth to me.