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December 10, 2018updated 11 Dec 2018 7:04am

A&W Food Services to add 46 restaurants to royalty portfolio

A&W Food Services of Canada and A&W Revenue Royalties Income Fund are set to add 46 new restaurants to A&W's royalty portfolio by 5 January next year.

A&W Food Services of Canada and A&W Revenue Royalties Income Fund are set to add 46 new restaurants to A&W’s royalty portfolio by 5 January next year.

Opened between 8 September 2017 and 6 September 2018, royalties from the new restaurants will be paid to A&W Trade Marks Limited Partnership. The move will expand the number of A&W restaurants in the royalty pool to 934.

A&W Food Services’ president and CEO Susan Senecal said: “We are very pleased to be adding 38 net new A&W restaurants to the royalty pool. A&W Food Services has opened more than 115 new A&W restaurants across Canada in the last three years.

“We are delighted with this pace of growth, particularly in Ontario and Quebec, which are our most important growth markets.”

“A&W Food Services has opened more than 115 new A&W restaurants across Canada in the last three years.”

The company expects that the newly added restaurants will generate annual sales of $63.78m, which includes net estimated annualised sales of $57.48m from 38 restaurants and $4.79m from eight locations that are now permanently closed.

In addition, A&W Food Services has filed an early warning report regarding an increase in its ownership of securities, which is indirectly exchangeable for limited voting units of the fund.

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Before 7 December, A&W Food Services had ownership and control of securities indirectly exchangeable for 4,106,616 limited voting units of the fund. This accounts for 24.7% of the outstanding voting securities of the fund, on a completely diluted basis.

A&W Food Services is a quick-service hamburger restaurant chain in Canada, offering a range of menu choices, including The Burger Family, Chubby Chicken and A&W Root Beer.

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