A&W Revenue Royalties Income Fund (AW.UN-T)

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

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

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.