TSX:KEG.UN - Post by User
Post by
logicandinertiaon Dec 20, 2023 7:18am
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Post# 35793280
Special Dividend announced
Special Dividend announced $0.08 special dividend announced due to strong same store sales and the extra week in 2023. These royalty vehicles actually benefit from the inflation driven menu price increases. The risk relates to reduced traffic, which alters the profitability of the stores and could lead to closures over time., which would then impact revenues and royalty payments to the Fund. Hasn't happened yet, and I believe Keg's positioning in the market remains strong and durable. With lower rates as we move thru 2024, there should be an upward move in the unit price (if one assumes the spread against benchmark interest rate holds).
The strong same store sales growth delivered by The Keg so far this year, coupled with the expected sales from a 53rd week of operation, generated significant incremental royalty income to the Fund”, said Mr. Kip Woodward, Chairman of the Fund.