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SIR Royalty Income Fund holds ground after cyberattack

 Trevor Abes Trevor Abes , The Market Online
0 Comments| October 1, 2024

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  • Service Inspired Restaurants Corp., the operating company behind restaurant stock SIR Royalty Income Fund (TSX:SRV.UN), is investigating a cyberattack affecting part of its IT infrastructure
  • Restaurants and payment platforms remain secure and continue to operate normally as the investigation progresses
  • SIR Corp. is a private Canadian corporation that owns a portfolio of 54 restaurants in Canada, including Jack Astor’s Bar and Grill (36 locations), Scaddabush Italian Kitchen & Bar (13 locations), Duke’s Refresher (two locations), The Loose Moose, Reds Square One and Edna + Vita
  • Shares of SIR Royalty Income Fund (TSX:SRV.UN) have given back 21.8 per cent year-over-year, but have gained 19.4 per cent since 2019

Service Inspired Restaurants (SIR) Corp., the operating company behind restaurant stock SIR Royalty Income Fund (TSX:SRV.UN), is investigating a cyberattack affecting part of its IT infrastructure.

Restaurants and payment platforms remain secure and continue to operate normally, according to Tuesday’s news release, though the investigation is in its preliminary stages. Management intends to release further details on the cyberattack as they arise.

SIR Royalty Income Fund currently pays a monthly dividend of C$0.095 per share, representing an annual yield of 8.6 per cent. These funds partially stem from a 6 per cent royalty on pooled restaurant revenue that grew every year from C$130.2 million in 2005 to C$300.2 million in 2018, before falling to a pandemic low of C$120 million in 2020 and rebounding to more than C$266 million in 2023. Net income, for its part, has been positive in four of the past five years, excepting a C$44 million loss in 2020.

According to the fund’s latest investor presentation, SIR Corp. is focused on driving growth through investments in new restaurants and renovations to strengthen its brands.

About SIR Corp.

SIR Corp. is a private Canadian corporation that owns a portfolio of 54 restaurants in Canada, including Jack Astor’s Bar and Grill (36 locations), Scaddabush Italian Kitchen & Bar (13 locations), Duke’s Refresher (two locations), The Loose Moose, Reds Square One and Edna + Vita.

SIR Royalty Income Fund is an Ontario-based trust that pays monthly income from SIR Corp.

Shares of SIR Royalty Income Fund (TSX:SRV.UN) are up by 0.08 per cent on the news, trading at C$12.81 per share as of 11:34 am ET. The stock has given back 21.8 per cent year-over-year, but has gained 19.4 per cent since 2019.

Join the discussion: Find out what everybody’s saying about SIR Corp.’s cyberattack on the SIR Royalty Income Fund Bullboard, and check out Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.

(Top photo of a Jack Astor’s restaurant in Toronto, Ontario: Adobe Stock)




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