Sir Royalty Income Fund SIRZF

Primary Symbol: T.SRV.UN

Consumer Cyclical Restaurants

SIR Royalty Income Fund (the Fund) holds investment in SIR Corp (SIR). The Funds' investment, SIR is engaged in the business of owning and operating full-service restaurants in Canada. SIR has concept restaurant brands, including Jack Astor’s Bar and Grill, Scaddabush Italian Kitchen & Bar, and Canyon Creek Chop House, signature restaurant brands, such as Reds Wine Tavern, Reds Midtown Tavern, Reds Square One, and The Loose Moose, which are used by SIR under a license agreement with SIR Royalty Limited Partnership (the Partnership. The Fund receives distribution income from its investment in the Partnership and interest income from the SIR Loan. The Fund indirectly participates in the revenues generated under the License and Royalty Agreement through its Investment in the Partnership.

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Sir Royalty Income Fund > Keg vs Sir

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Comment by flamingogoldon Jul 16, 2021 9:27am

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Post# 33558495

RE:Keg vs Sir

With fewer locations and market reach than it's competitors, SIR has always received a premium yield by the market. It is possible that this current discrpancy in yield may seem exceptional now but could be shrunk with the market pricing the shares higher.

BlueJay2020 wrote:
Is it an accident that distributions have been set at 84 cents, the exact same as the Keg?

For the Keg, that equates to a yield of circa 5.55%. For Sir, it is 10.6%. While the Keg is perhaps a premium brand, that massive difference is not justified.

Meanwhile Pizza Pizza offers a yield of circa 6 per cent on 66 cents, and Boston Pizza circa 5.5 percent on 78 cents.

As Flamingogold says, it gets better because the expectation is that this distribution level will rise over time. I think a buck a unit is quite achievable and covered by sales levels in the quarter right before the pandemic.