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Investor Insights

This summary was created by AI, based on 5 opinions in the last 12 months.

A W Food Services of Canada Inc., symbol AW-T, is viewed as a stable yet relatively small player in the food services sector. Analysts appreciate its consistent dividend payments and operational performance across various economic conditions, although they classify it primarily as an income stock rather than a high-growth opportunity. With a 4.5% yield, the potential for capital appreciation appears limited, given that most earnings are returned to shareholders. Recent restructuring aimed at consolidating its operating and royalty segments adds liquidity, but there are cautionary notes regarding consumer demand in a slowing economy. Overall, while it is attracting interest for its income generation, analysts highlight the company’s lack of significant growth prospects compared to peers in the sector.

Consensus
Stable
Valuation
Fair Value
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

AW is relatively small, but we like it well enough. It has operated very well in differing economies, raised its dividend over time, and maintained its market share. However, we would view it far more as an income stock and not one of particularly high growth. Because of its high dividend, less money is available for growth initiatives, and the industry itself is not one of high growth. But we would view it as a small cap buy for income.
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TOP PICK

Successful, stable. Company structure now brings operating and royalty businesses together. Owns national rights to Pret a Manger. Topline growth of 5%, and bottom line growth of 10%. Big transition in shareholder base from royalty stream holders; now more risk, but more upside. Private equity plus former management still owns 60%, so incentivized to create value. Yield is 4.5%.

(Analysts’ price target is $38.00)
PARTIAL BUY

Growing quickly, but not investing at this time. Good yield, but not major capital appreciation. However, ~5% dividend yield is safe. 

Unspecified

It is more attractive with the re-structuring which gives it more liquidity. He is cautious on the consumer space in a slowing economy. There is a broader consumer issue bubbling below the surface and he will watch how it plays out.

Unspecified

It executes well, pays out most of its earnings and is still opening U.S. restaurants. It is not a growth stock - MTY Foods is better for this in the sector.

HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

The main concerns are related to same store sales growth slowing, but still remains positive over the last year. The general economic environment in 2023 also impacted results and were a concern, but improvements in the future here should help. Number of restaurants in the royalty pool was also flat in the fourth quarter. Debt load is still very manageable and we are not too concered on that front. 
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COMMENT

It has a yield of 5.9% which is safe. It is not growthy enough for him since he is looking for 20% growth per year. However it is a steady company with a decent chart

BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

AW.UN is a fundamentally strong fund, and is primarily an income stock. It has a yield of 5.8%, has grown its distributions by 3% annually over the past 10 years, and is reasonably valued at these levels. We feel that investors have opted to purchase 'risk-free' cash investments that have a similar yield to AW.UN, but much less risk given the changing interest rate environment. Although, we don't believe that this trend will last forever, and AW.UN has more upside potential than money market funds. For an investor looking for yield and a stable cashflow-generating business, we like AW.UN here and feel that it's at a good valuation today. 
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BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

AW.UN is now trading at 16x times' P/E. In the 2Q, AW.UN’s royalty income grew 4.8% to $12.8M compared to last year of $12.2M and same-store sales growth remains positive at 2.5%. Distributable cash per unit grew slightly 3.5% to $0.497, compared to last year of $0.48. The balance sheet is okay, with net debt of $35M. Total debt is around 1.3x times trailing twelve-month cash flow of $27M. AW.UN’s growth is quite resilient, the company has demonstrated pricing power in inflationary periods in recent years to maintain profit margins.

Compared to the industry, AW.UN is quite attractive, trading at only 16x, with consistently positive same-store sales growth and store openings. Unlike other restaurants, AW.UN did not make any recent acquisitions, and most of the earnings are paid out as distributions. We expect the company will continue to raise distributions due to the resilience in the franchise and its track record of value creation.
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BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Negative sales growth, but improving. Distribution on path to being restored. Larger base of stores for recovery. Share fairly valued with attractive yield.
WATCH
Fast food faces rising supply and labour costs and maybe a weakening consumer, but that consumer may be trading to into fast food. Fast food tends to offer stable demand. This stock has come off a lot (QSR too). A&W pays a 5% dividend yield. An interesting company. He's patient and watching this.
WATCH
Nice recovery from Covid. Massive increases in price of raw materials and labour. Will they be able to increase margins? Will consumer be forced to come down market and boost their business? Yields are very attractive. After the recent run, all stocks should pull back, so he's watching the space.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They announced a two year pilot to introduce the Pret brand in its restaurants. It would offer customers an alternative and the brand is popular abroad. A good move overall to diversify. Unlock Premium - Try 5i Free

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Likes the name and would be fine adding to it at current levels. Is well positioned and the management team is good. Results were okay last quarter, all things considered. Worst is most likely over. Unlock Premium - Try 5i Free

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.
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A W Food Services of Canada IncInstrument Symbol(AW-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 3

Stockchase rating for A W Food Services of Canada IncInstrument Symbol is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

A W Food Services of Canada IncInstrument Symbol(AW-T) Frequently Asked Questions

What is A W Food Services of Canada IncInstrument Symbol stock symbol?

A W Food Services of Canada IncInstrument Symbol is a Canadian stock, trading under the symbol AW-T on the Toronto Stock Exchange (AW-CT). It is usually referred to as TSX:AW or AW-T

Is A W Food Services of Canada IncInstrument Symbol a buy or a sell?

In the last year, 3 stock analysts published opinions about AW-T. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for A W Food Services of Canada IncInstrument Symbol.

Is A W Food Services of Canada IncInstrument Symbol a good investment or a top pick?

A W Food Services of Canada IncInstrument Symbol was recommended as a Top Pick by on . Read the latest stock experts ratings for A W Food Services of Canada IncInstrument Symbol.

Why is A W Food Services of Canada IncInstrument Symbol stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is A W Food Services of Canada IncInstrument Symbol worth watching?

3 stock analysts on Stockchase covered A W Food Services of Canada IncInstrument Symbol In the last year. It is a trending stock that is worth watching.

What is A W Food Services of Canada IncInstrument Symbol stock price?

On 2025-03-14, A W Food Services of Canada IncInstrument Symbol (AW-T) stock closed at a price of $31.87.