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TSE:AW

A W Food Services of Canada IncInstrument Symbol (AW.TO)

36.35
+0.03 (0.08%)
as of Jun 15, 2026, 5:19:14 pm Market Open.
190 watching
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Investor Insights
star iconJun 15, 2026, 12:00 am

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.

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Consensus
Positive
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Valuation
Undervalued
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Alimentation,ATD
HOLD
Stands out as one of the best run of the Canadian quick serves. Great growth strategy. Execute well. Hit by pandemic, but the dividend will come back. Short-term blip in a great long-term story. Hold it if you own it. Has potential to continue to surprise.
DON'T BUY
The payout ratio is bumping on 100%. It is reasonably priced but has rolled off to get here. He would be concerned about the dividend.
BUY

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.

PAST TOP PICK
(A Top Pick Dec 04/19, Down 15%) Any consumer stocks are terrible now. Don't buy then. However, now is seasonality, and the high dividends are attractive during volatile times. This failed to act as his hedge during volatility which upsetted him.
BUY
He likes A&W and royalties like these in general. A nice yield and good sales growth. They are marketing themselves as the healthy alternative fast food company. He thinks there are opportunities to expand further. Yield 5%
WEAK BUY
It's gone sideways with the meatless burger and a brilliant ad campaign, but competitors have caught up a lot. He owns a little only. It doesn't trade in big volumes though. He'd still buy it. They have good locations in places like airports. Pays a good dividend. A long-term investment. Also, A&W is conscious of ESG and has made green initiatives to attract younger customers and investors.
PARTIAL SELL
Used to own it until the valuation got too high. They've done a great job spinning out the real estate into a royalty stream. But this has gone parabolic this year as its growth has slowed. Take some profits. There's limited growth, but they are benefiting from declining interest rates. This doesn't make the top of his list of income streams. Pays a good dividend. Don't need to sell this, but don't need to buy it either.
BUY
Fine managers who've generated good same-store sales in a tough environment. The dividend is safe and will grow. It's too small and illiquid for him, but he really likes this.
TOP PICK
It pays out 3% of revenues from the 900 A&W locations in Canada. Same-stores have grown 6.9%. The royalty rate doubled in recent years. This became parabolic, then consolidated this year. Momentum indicators point higher. Dec. 6-March 10 is seasonality. Fundamentals and technicals are good. (Analysts’ price target is $45.00)
DON'T BUY
Since 2017 he sees a rounded cup and saucer that appears to be breaking down -- a chart failure. This is usually a very bearish signal. He sees some consolidation around $36. But if it breaks down, it could retest $30 soon. He would stay away right now.
BUY
Likes it. It's hit some resistance with analyst downgrades. A solid company with leadership in advertising, namely Beyond Meat. They can grow with their franchise structure. Brilliant to open at Toronto's airport next to Starbucks. He sees growth in market share. Also, boomers stay loyal to their brands as they age.
PAST TOP PICK
(A Top Pick Nov 18/18, Up 15%) Root beer and high end fries. Up 15%. They position themselves as a healthy high end fast food vendor. They were first to do the beyond-meat burger. They did a good job of talking the talk and not just walking the walk. Double digits for almost a year and a half, which is impressive. You can just harvest the 5% yield.
BUY
The chart has improved a lot after a head-and-shoulders pattern in 2017-18. It's had a strong 2019. There may be weakness between $36-38, but the long-term is poised to move up.
BUY

Nothing wrong with this. Beyond Meat has done phenomenally well for them; they were the first to introduce its. A very well-run company.

PARTIAL SELL

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.

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