A&W sees same store sales and second quarter profit surge as restaurants reopen
The Canadian Press
A&W Revenue Royalties Income Fund says its same-store sales surged nearly 34% in its latest quarter from the prior year when it faced the most pronounced impact from COVID-19.
The fast-food chain said the increase compared with same-store sales, a key retail metric, plunging 31.6% in the second quarter of 2020 when restaurant closures peaked.
At the time, 230 of 971 restaurants were closed and open stores were restricted to drive-thru operations, delivery and takeout.
Petro-Canada partnered with A&W in 1997 and today there are A&W foodservice locations in more than 60 Petro-Canada sites across six provinces.
The Vancouver-based company's gross sales in the royalty pool increased 38.5% to $350.6 million from $253.2 million a year earlier as eight restaurants remained temporarily closed.
Net income for the three months ended June 30 was $8.1 million, up from $4.2 million in the second quarter of 2020, resulting from increased same-store sales, the addition of 23 new restaurants and five additional days of operations.
The company increased its monthly distribution to 15 cents per unit from 13.5 cents, beginning with the July distribution payable Aug. 31.
"Although we continue to feel the impacts of COVID-19 on our business, with the declining case numbers and easing of restrictions across Canada we are confident that through the efforts of our franchisees A&W is on the road to recovery,'' stated CEO Susan Senecal.