VANCOUVER , July 26, 2016 /CNW/ -
HIGHLIGHTS
Year to date same store sales growth 5.4%Q2 same store sales growth up 2.7%Year to date Royalty Pool sales up 12.5% A&W Revenue Royalties Income Fund (the Fund) and A&W Food Services of Canada Inc. (A&W Food Services) today reported results for the second quarter ended June 19, 2016 . The Fund will hold a conference call to discuss the results on Tuesday July 26, 2016 at 1:00 p.m. Pacific Time (4:00 p.m. Eastern Time). The call can be accessed by dialling toll-free 1-866-530-1553 or (416) 847-6330 Passcode 4133399. A replay will be available until August 1, 2016 , by dialling toll-free 1-888-203-1112 or (647) 436-0148 Passcode 4133399.
A&W posted a solid quarter, despite the impact of difficult economic and market challenges in Alberta and Saskatchewan , two of A&W's strongest markets. Same store sales increased by 2.7% in the quarter, bringing year to date same store sales growth to +5.4%. The year to date two year stacked same store sales growth is +14.4%. A&W has now reported positive same store sales growth for 13 consecutive quarters.
The continuing strong same store sales growth, along with the sales from 24 net new restaurants added to the Fund's Royalty Pool in January 2016 , resulted in a 6.0% increase in sales reported by restaurants in the Royalty Pool for the quarter. On a year to date basis, sales reported by restaurants in the Royalty Pool increased by 12.5%.
"While the foodservice market was more challenged in the second quarter, we are pleased with our continued solid sales and financial performance", said Paul Hollands , Chairman and CEO of A&W Food Services. "Our results are especially noteworthy given our strong results from the same quarter last year. Our strategy to reposition and differentiate A&W as a "better burger" QSR (Quick Service Restaurant) restaurant continues to be very well received by our guests."
A&W lives by its motto "Good Food Makes Good Food", only serving its guests beef raised without the use of hormones and steroids, eggs from hens fed only a diet without animal by-products, chicken raised without the use of antibiotics, and organic and Fair Trade coffee. In 2016, A&W launched bacon from pork raised without the use of antibiotics, another first for the QSR industry.
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