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TSE:AW

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

36.10
-0.22 (0.61%)
as of Jun 15, 2026, 3:55:35 pm Market Open.
190 watching
0
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
COMMENT
Great story. Have gone healthier. Bit of a slowdown in same store sales, because of the meat alternative introduction.
HOLD
He likes the chart with higher highs and higher lows. He expects a sideways consolidation because of the recent sharp move. He would hold and collect the dividend while it consolidates.
BUY

A great operator, though he prefers QSR-T which is more diversified. What's ignited investors is their plant protein line of burgers. They're doing something right.

BUY
Meatless protein should boost their sales and this will be an indsutry-wide trend. Very well-run company. They've expanded very well. It's a little stretched, but a solid long-term investment.
STRONG BUY
REITs investors love this, but Bay St. neglects it. He tips his hat to it, boasting a compound annual rate of return at 16.5% over 17 years. It's a fine business model, a royalty trust. A&W is the burger chain of 900 Canadian stores, and so A&W earns a 3% royalty from every dollar of sales from its franchisees, but they don't put up any capital to build those stores (the franchisee does). A&W is capital-lite and growth. The 4.5% dividend grows 5% annually with good free cash flow. Their same-store sales growth was 10% last year. He owns a peer. But this isn't liquid, not large. They're also selling fish and healthier alternative to burgers and become more sustainable.
PAST TOP PICK
(A Top Pick Mar 01/18, Up 28%) Same store sales growth over the last 2 quarters of 12-13%. Have done a great job of socially responsible positioning. They are increasing their dividends and are adding stores. He doesn't expect this level of same store sales growth to continue.
TOP PICK

Yield of 5%. Same store sales of 13% in the last quarter. 8% in the last year. They are doing all the right things. Growing their store count. Everything moving in the right direction. (Analysts’ price target is $36.00)

BUY

They are strong in Western Canada and expanding in Eastern Canada. He likes the model. The dividend is attractive.

BUY

He generally likes the restaurant royalty business. The one issue has been the rise in minimum wage. Generally restaurants are raising prices to offset the minimum wages. The long term trend is good in the industry is good.

HOLD

It's at 2015-16 levels, trying to build a base now. It looks okay. Hang onto it for now.

BUY

Trading volume is low, so it's hard to buy at a higher volume for his clients, though he owns it personally. He's noticed that AW attracts longer customer lines than, say, Starbucks. Likes this stock.

BUY

He is not concerned about the distribution because it is a royalty structure. He thinks it is one of the faster growing companies in the space. 3% same store sales growth. Anything with a high dividend is getting beaten up because of interest rate fears.

BUY

Likes this a lot. It's a royalty company in fast food, but the minimum wage increase hurt them. He's added to his position and plans to hold it for a long time. They had a dip last year, but has enjoyed strong quarters since. Great franchise, good yield around 5%.

TOP PICK

This is a conservative fund. They take top line sales from restaurants and pay out as a distribution. It got beaten up recently on interest rate concerns. Two of the last three quarters’ sales showed slowing same store sales growth but then were up most recently and are now they are now one of the fastest growing restaurant royalty companies. You might get a bit of growth. (Analysts’ target: $34.50).

COMMENT

They have many more stores in the west, particularly Alberta, so they were hurt in the oil collapse. Same-store sales suffered. But they are on the mend now. They introduced healthy food a while ago, so that growth has now slowed down. They are opening stores in Ontario which will lead to some growth. They enjoyed 14% same-stores in one quarter, but that's in the past.

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