A&W Revenue Royalties Income Fund

AW.UN-T

Analysis and Opinions about AW.UN-T

Signal
Opinion
Expert
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.
TOP PICK
TOP PICK
November 29, 2018

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)

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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
BUY
September 10, 2018

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

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

BUY
BUY
July 23, 2018

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.

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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
HOLD
June 25, 2018

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

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

BUY
BUY
June 11, 2018

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.

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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
BUY
May 24, 2018

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.

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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
BUY
April 24, 2018

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%.

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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
TOP PICK
March 1, 2018

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).

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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
COMMENT
February 28, 2018

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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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.

COMMENT
COMMENT
January 15, 2018

An income fund and pays a royalty off sales. They are gaining market share in Canada. They are under-stored, so there are opportunities. Income funds will continue to move up and pay gradual higher dividends. Dividend yield of 4.8%.

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An income fund and pays a royalty off sales. They are gaining market share in Canada. They are under-stored, so there are opportunities. Income funds will continue to move up and pay gradual higher dividends. Dividend yield of 4.8%.

PAST TOP PICK
PAST TOP PICK
November 7, 2017

(A Top Pick Nov 2/16. Up 5%.) The story is that it was sort of capturing millennials as they were one of the 1st burger chains introducing much healthier fare. As a much smaller chain, they can actually source enough of their healthy ingredients. It was doing incredibly well, but did suffer from lower oil prices, as their major stores were in Alberta. Now that is behind them, this should start doing well.

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(A Top Pick Nov 2/16. Up 5%.) The story is that it was sort of capturing millennials as they were one of the 1st burger chains introducing much healthier fare. As a much smaller chain, they can actually source enough of their healthy ingredients. It was doing incredibly well, but did suffer from lower oil prices, as their major stores were in Alberta. Now that is behind them, this should start doing well.

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