TRADING SYMBOL: TSX: AW.UN
VANCOUVER, BC, Oct. 20, 2021 /CNW/ -
- Same Store Sales Growth(1) was 16.8% for Q3 2021 as compared to Q3 2020.
- Same Store Sales Growth(1) for the year to date period ended September 12, 2021 was 14.0%.
- The monthly distribution rate will be increased from 15.0¢ per Unit to 15.5¢ per Unit beginning with the October 2021 distribution that is payable November 30, 2021.
THIRD QUARTER 2021 RESULTS
A&W Revenue Royalties Income Fund (the "Fund") and A&W Food Services of Canada Inc. ("A&W Food Services") today reported results for the third quarter and year to date period ended September 12, 2021. The Fund will hold a conference call to discuss the results on Wednesday, October 20, 2021 at 1:00 p.m. Pacific Time (4:00 p.m. Eastern Time). The call can be accessed by dialling toll-free 1-866-248-8441 or (647) 792-1240 Passcode 3277538#. A replay will be available until October 27, 2021 by dialling toll-free 1-888-203-1112 or (647) 436-0148 Passcode 3277538#.
Same Store Sales(i) for the third quarter of 2021 increased by 16.8% as compared to the same quarter of 2020. Same Store Sales(i) for the 36-week period ended September 12, 2021 increased by 14.0% as compared to the comparable period in 2020. The growth in Same Store Sales(i) in the quarter was largely fueled by the lifting of COVID-19 related public health restrictions across Canada which led to increased guest counts and a reduction in the number of A&W restaurants that were temporarily closed or were not able to offer dine-in services. As at September 12, 2021, only two restaurants remained temporarily closed. As of today, one of those restaurants remains temporarily closed and is expected to reopen when permitted to do so.
The actions required in 2020 and 2021 in response to COVID-19 have adversely impacted A&W restaurant operations across Canada, particularly for those restaurants located on urban street fronts and in shopping centres. Since the second quarter of 2020 when COVID-19 impacts on A&W were at their peak, the impact of COVID-19 on Same Store Sales(i) has lessened. There does, however, continue to be uncertainty related to COVID-19 and its impact on our business. It is possible that the number of restaurants temporarily closed increases again as the situation evolves in the next year or other restrictions or requirements are introduced affecting operations, guest counts or sales.
As a result of the performance by restaurants in the Royalty Pool, the monthly distribution to unitholders will increase from 15.0 cents per Unit to 15.5 cents per Unit, beginning with the October distribution which is payable on November 30, 2021. The new distribution rate translates into a go-forward annualized distribution rate of $1.86 per Unit, an increase of 3.3% from the prior level of $1.80 per Unit.
"Although we continue to face challenges related to COVID-19, we are pleased to report strong sales growth for the quarter and are delighted to have almost all of our restaurants back open", said Susan Senecal, President and CEO of A&W Food Services. "We are also pleased that the strong performance of the restaurants in the royalty pool has supported another increase to the Fund's distribution rate."