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TSE:AW
This summary was created by AI, based on 1 opinions in the last 12 months.
A W Food Services of Canada Inc. (AW-T) has garnered attention from analysts due to its robust financial position and promising yield of nearly 6%. Recently highlighted as a top pick, the stock has seen an increase of 11%, reflecting positive sentiment among experts. The company operates a substantial network of approximately 1,000 franchises across Canada, generating income primarily through royalties. Despite its commendable performance, it remains under the radar, with only two analysts actively following it. Investors are particularly intrigued by the potential for double-digit returns, with aspirations for a stock price target of $50, indicating strong future growth prospects and investor confidence in the company’s capabilities.
Will people be scared to eat out during the coronavirus scare? It's a great business. He likes the royalty model, because they can grow in a capital-lite fashion, meaning not beholden to huge capital expenditures. To increase stores, the franchisees pay for that, but they can't benefit from same-store sales growth. They're good at expanding locations and menu offerings that are popular and innovative like wild cod fillet and the Beyond Meat burger. The dividend is safe. Maybe the virus will effect them, but not for long and that will pressure only one quarterly report. Long run, no, the virus won't have an impact. After 9/11, people said no one will fly again, but years later, airlines were hot stocks.
Nothing wrong with this. Beyond Meat has done phenomenally well for them; they were the first to introduce its. A very well-run company.
He considered buying it recently. The Beyond Meat run-up was overdone. They've had great same-store sales growth recently (due to their Beyond Meat deal). Expect low-single digit sales in the near future, but it won't hit $50 unless someone buys them. It's a safe franchise that has executed extremely well in the last 5 years.