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.”
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.
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.