A&W Revenue Royalties Income Fund

AW.UN-T

Analysis and Opinions about AW.UN-T

Signal
Opinion
Expert
PARTIAL SELL
PARTIAL SELL
December 31, 2019
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.
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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
BUY
December 9, 2019
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.
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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
TOP PICK
December 4, 2019
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)
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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
DON'T BUY
November 22, 2019
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.
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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
BUY
November 12, 2019
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.
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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
PAST TOP PICK
November 7, 2019
(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.
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(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
BUY
October 1, 2019
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.
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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
BUY
September 19, 2019

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

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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
PARTIAL SELL
August 28, 2019

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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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.

COMMENT
COMMENT
June 27, 2019
Great story. Have gone healthier. Bit of a slowdown in same store sales, because of the meat alternative introduction.
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Great story. Have gone healthier. Bit of a slowdown in same store sales, because of the meat alternative introduction.
HOLD
HOLD
June 18, 2019
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.
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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
BUY
May 8, 2019

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.

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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
BUY
May 7, 2019
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.
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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
STRONG BUY
April 11, 2019
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.
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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
PAST TOP PICK
March 29, 2019
(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.
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(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.
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