A&W reports steady growth in fiscal 2025, opens 26 new restaurants
A&W Food Services of Canada reported higher system sales and earnings for the fourth quarter and full fiscal year ended Dec. 28, 2025, while continuing to expand its restaurant network across Canada.
The Vancouver-based company said system sales reached $591.4 million in the fourth quarter, up 2.5% from the same period a year earlier. Income before income taxes rose 12% to $23.4 million, while adjusted EBITDA increased 5% to $29.3 million, with margins improving to 31.5%.
For the full fiscal year, system sales increased 2.8% to $1.92 billion, while income before income taxes jumped 53% to $76.7 million. Adjusted EBITDA rose 7% to $100 million, with margins increasing to 34%.
Same store sales growth
“In Fiscal 2025 we were able to deliver positive same store sales growth in all four quarters, open 26 new A&W restaurants and meet our annual guidance,” said Susan Senecal, chief executive officer of A&W Food Services of Canada, in a release. She noted that the company achieved these results despite a “fiercely competitive landscape and challenging macroeconomic environment.”
Senecal said value-focused promotions and the brand’s value menu helped support growth as the company worked to keep its offerings affordable while maintaining quality.
During the year, A&W opened 26 new restaurants, including 12 in the fourth quarter, bringing net restaurant unit growth to 2%.
The company also declared a cash dividend of $0.48 per share for the quarter. For the full fiscal year, dividends totaled $1.92 per share.
Looking ahead, A&W said economic uncertainty and severe weather in eastern Canada early in 2026 could create headwinds for restaurant sales, but the company remains confident in its ability to deliver value to customers and continue growing the brand.
