A&W reports slower sales growth while net income falls short of expectations

VANCOUVER — A&W Revenue Royalties Income Fund saw sales growth slip in its most recent quarter, following a record performance in the same quarter last year.

Same-store sales, a key retail metric, grew 1.2 per cent for the third quarter ended Sept. 8, the fund reported Wednesday. That comes after a 13 per cent jump in same-store sales in the third quarter of the previous year.

The quarterly growth continues to be led by particularly strong performances in Quebec and Ontario, as well as in British Columbia, said CEO Susan Senecal during a conference call with analysts.

“One of the drivers behind our sales growth is our innovation with high-quality ingredients that guests can feel good about,” she said, referencing the company’s commitment to serve beef from cows raised without the use of artificial hormones or steroids, non-processed cheese, and eggs from hens fed a vegetarian diet free of animal byproducts, among others.

She also highlighted menu innovation, including the company’s launch of all-day breakfast in 2017 and decision to start selling Beyond Meat burgers — a plant-based protein — that’s now offered across a slew of other restaurant chains in Canada.

The burger chain continues to see consistent sales from this menu item, she said, with some guests choosing the plant-based patty occasionally, while for others it’s the only burger they’ll ever order from the restaurant.

“People are becoming much more experimental and wanting to try new things, where that was less the case in the past,” said Senecal.

“So, that’s a good thing in terms of our business.”

The same-store sales growth and sales from 38 net new restaurants added to the fund’s royalty pool on Jan. 5 this year boosted gross sales for the quarter to $370.4 million from 934 stores. That’s up from $350.2 million in the same quarter of last year when there were 896 stores.

Net income excluding non-cash items came in at $8.4 million for the quarter, down from $8.6 million in the third quarter of 2018. Analysts surveyed by financial markets data firm Refinitiv expected net income for the quarter to match last year’s level at $8.6 million.

Just Posted

Pros and cons of western separation to be discussed in Red Deer

To stay or not to stay. That is a question that may… Continue reading

Lacombe County rejects synergy group funding request

Group offers link between energy industry and residents

Red Deer area’s Canyon Ski Resort to open Saturday

The Canyon Ski Resort near Red Deer will open Saturday. The projected… Continue reading

Hwy 2 backed up after morning collisions near Red Deer

Two collisions less than a kilometre apart on Hwy 2 south of Red Deer

Black Press Extreme Education and Career Fair coming to Red Deer College’s Cenovus Learning Commons

Central Albertans can connect with employers on Nov. 28 from 11 a.m. to 3 p.m.

Petition to ‘bring back Don Cherry’ goes viral after immigrant poppy rant

Cherry was fired from his co-hosting role for the Coach’s Corner segment on Nov. 11.

Your community calendar

Wednesday Pain 101 class — learn to take control of your chronic… Continue reading

Police looking for 13-year-old girl last seen in Ponoka

Police are looking for public assistance to locate a 13-year-old girl. Alexandra… Continue reading

Election handed federal leaders a lesson in humility

Three weeks after the votes were counted, the point of the 2019… Continue reading

Opinion: Kenney plainly explains why Alberta deserves a fairer deal

By David Marsden It had been expected that Premier Jason Kenney would… Continue reading

Reflections on writing about the lives of Beckett, Beauvoir

“Parisian Lives: Samuel Beckett, Simone de Beauvoir, and Me: A Memoir,” Nan… Continue reading

Ensign Energy Services slashes dividend in half, reports $37.8M Q3 loss

CALGARY — Ensign Energy Services Inc. cut its dividend in half due… Continue reading

Top teams in good shape as Euro qualifying reaches climax

With the Netherlands missing out on Euro 2016 and Italy absent from… Continue reading

Ricky Gervais returning to host the 2020 Golden Globe Awards

LOS ANGELES — Look out Hollywood, Ricky Gervais is returning to host… Continue reading

Most Read