
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) is a well-capitalized company that boasts an attractive nearly 6% yield, positioning it well for income-focused investors. According to expert reviews, the stock has been highlighted as a 'Top Pick' with an optimistic outlook for a price target of $50, indicating potential for double-digit returns. The company operates through a robust franchise model, comprising 1000 franchises across Canada, which supports its revenue through royalties. Despite being followed by only two analysts, the stock's fundamentals suggest a stable investment opportunity, appealing to those seeking consistent returns and growth in their portfolio.
Sees this as a good long term, growing, practical, well-managed company. The risk on this is always competition. They have gone with a very aggressive media strategy and into a healthier product which seems to be doing well. Have also built new strategic locations. Expects they will have continuing success.
This is good for income. What has really attracted him to this is the consistency. As a royalty company, all they really do is cash cheques. They get cheques from the restaurant, a 3% royalty. Have raised their distribution twice this year. Same store sales growth is 8.3%, which in this business is absolutely unbelievable. Have also made a push into organics, which has really hit a nerve with consumers. Dividend yield of 5.42%.
Likes this company a lot. They have been killing the numbers in terms of same store growth versus the rest of the industry. Just reported an 8% growth. They keep raising their dividend and keep outperforming the market and keep paying a nice dividend. A solid name that people just don’t know that well.
Doesn't own this in the funds because he can't get enough of it to fill the accounts, but owns a little personally. They have done a terrific job, both with their ad campaign and the focus on having healthier sourcing of their product, and their expansion. A great franchise and have been really clever on advertising.
Very well operated company. A royalty company so it continues to pay you a nice dividend. In terms of trends, this is what worries him. Have had negative comps for the last couple of quarters and competition is picking up but feels that the yield will support the stock. Keep an eye on their comp numbers. If there is a suggestion that they are facing huge headwinds in terms of their market share, it doesn’t matter what the dividend is, you want to get away.