A&W Revenue Royalties Income Fund

AW.UN-T

Analysis and Opinions about AW.UN-T

Signal
Opinion
Expert
WEAK BUY
WEAK BUY
November 6, 2017

It is an income trust, a revenue trust. It is a stream of revenue, not profit. It is not exposed to costs or a jump up in taxes. He sees no evidence of distribution cuts. They seem to raise them once a year and pay them once a month. You have to look at the underlying franchise. Are hamburger sales going to continue? He is at a loss because he does not go to these kinds of restaurants. A downtrend has broken. You may buy this for stability and distribution. As long as it is in a diversified portfolio. You need to decide if consumptions of these kinds of meals are increasing or not.

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It is an income trust, a revenue trust. It is a stream of revenue, not profit. It is not exposed to costs or a jump up in taxes. He sees no evidence of distribution cuts. They seem to raise them once a year and pay them once a month. You have to look at the underlying franchise. Are hamburger sales going to continue? He is at a loss because he does not go to these kinds of restaurants. A downtrend has broken. You may buy this for stability and distribution. As long as it is in a diversified portfolio. You need to decide if consumptions of these kinds of meals are increasing or not.

BUY
BUY
August 2, 2017

A good start for income. Had some really strong same store sales growth 6-12 months ago, but that has now come off, so the shares have slid a bit. It got to a point where it got oversold, in a lot of cases just because the stock was down. Their quarter was okay and they had a same-store sales growth of .7%, and are going to be able to grow the top line by adding restaurants to the royalty pool. For income purposes, he would be fine with this. Dividend yield of 5%.

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A good start for income. Had some really strong same store sales growth 6-12 months ago, but that has now come off, so the shares have slid a bit. It got to a point where it got oversold, in a lot of cases just because the stock was down. Their quarter was okay and they had a same-store sales growth of .7%, and are going to be able to grow the top line by adding restaurants to the royalty pool. For income purposes, he would be fine with this. Dividend yield of 5%.

PAST TOP PICK
PAST TOP PICK
July 19, 2017

(A Top Pick July 20/16. Down 0.09%.) It went up, and she took her profits. In their last earnings report, same-store sales have actually been negative, and they had been reporting double digit growth. If they return to positive same store sales, she will be a buyer again. Dividend yield of 4.8%.

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(A Top Pick July 20/16. Down 0.09%.) It went up, and she took her profits. In their last earnings report, same-store sales have actually been negative, and they had been reporting double digit growth. If they return to positive same store sales, she will be a buyer again. Dividend yield of 4.8%.

COMMENT
COMMENT
April 11, 2017

This has a nice dividend. He likes the royalty structure, where they are just taking the income from the A&W operating business and flowing it out to investors in the form of dividends. A&W has some of the best same-store sales growth right now in the restaurant industry in Canada. Over 3 years, the average same-store sales growth has been about 5.5%. Dividend yield of 4%.

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This has a nice dividend. He likes the royalty structure, where they are just taking the income from the A&W operating business and flowing it out to investors in the form of dividends. A&W has some of the best same-store sales growth right now in the restaurant industry in Canada. Over 3 years, the average same-store sales growth has been about 5.5%. Dividend yield of 4%.

TOP PICK
TOP PICK
November 2, 2016

*Long*(Pairs Trade with a Short on Chipotle Mexican Grill (CMG-N). This company has had tremendous success with their healthy menu. They also have a lot of opportunities to open new stores in Canada because they are very concentrated out West, and not so much in Ontario. Dividend yield of 4.52%.

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*Long*(Pairs Trade with a Short on Chipotle Mexican Grill (CMG-N). This company has had tremendous success with their healthy menu. They also have a lot of opportunities to open new stores in Canada because they are very concentrated out West, and not so much in Ontario. Dividend yield of 4.52%.

COMMENT
COMMENT
September 30, 2016

He likes the burgers and the company. Valuation has gotten bid up a bit, so the yield has come down. It has some pretty strong same store sales metrics is a fast food company. He likes the same store sales momentum, which is a key metric here. As a royalty, they are taking money off of the top and don’t really have any operations they have to pay for. 4.7% yield.

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He likes the burgers and the company. Valuation has gotten bid up a bit, so the yield has come down. It has some pretty strong same store sales metrics is a fast food company. He likes the same store sales momentum, which is a key metric here. As a royalty, they are taking money off of the top and don’t really have any operations they have to pay for. 4.7% yield.

DON'T BUY
DON'T BUY
September 27, 2016

(Market Call Minute.) Look at DineEquity (DIN-N) instead.

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(Market Call Minute.) Look at DineEquity (DIN-N) instead.

COMMENT
COMMENT
September 27, 2016

He still loves this company. A very strong company. It has had a very good run, and is in reasonably pricey territory, so he took a little money off the table. Expects it is fully valued at this point.

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He still loves this company. A very strong company. It has had a very good run, and is in reasonably pricey territory, so he took a little money off the table. Expects it is fully valued at this point.

BUY
BUY
July 25, 2016

Continues to do well. It is a royalty so you are dependent on sales growth, rather than earnings. He owns a similar company (CAO-T).

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Continues to do well. It is a royalty so you are dependent on sales growth, rather than earnings. He owns a similar company (CAO-T).

TOP PICK
TOP PICK
July 20, 2016

This is one of those rare combinations that has a good dividend yield and is growing its dividend. Also this is a growth stock. Last quarter they had 8% same-store sales growth, which is huge. They still have a lot of places where they can open stores. Dividend yield of 4.7%.

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This is one of those rare combinations that has a good dividend yield and is growing its dividend. Also this is a growth stock. Last quarter they had 8% same-store sales growth, which is huge. They still have a lot of places where they can open stores. Dividend yield of 4.7%.

COMMENT
COMMENT
June 24, 2016

Have been putting up about a 6%-9% same-store sales growth over the last year or so, which is a pretty big number. Their marketing is on an organic healthier food angle, and also focusing on smaller format stores in metropolitan areas. That seems to be paying off. As a royalty, there aren’t many costs. Payout ratio is at about 100%.

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Have been putting up about a 6%-9% same-store sales growth over the last year or so, which is a pretty big number. Their marketing is on an organic healthier food angle, and also focusing on smaller format stores in metropolitan areas. That seems to be paying off. As a royalty, there aren’t many costs. Payout ratio is at about 100%.

COMMENT
COMMENT
May 25, 2016

His only negative is that it trades modestly enough that it is hard for him to buy a big position. This has great growth. They really made a statement when they changed the meat they were using, along with a good ad campaign.

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His only negative is that it trades modestly enough that it is hard for him to buy a big position. This has great growth. They really made a statement when they changed the meat they were using, along with a good ad campaign.

COMMENT
COMMENT
April 29, 2016

There is only one analyst that follows this, and he is neutral on it. This company is fine. It is a royalty structure of the A&W revenues across Canada. 5.1% yield which is a little attractive, but it is a 99% payout ratio, so would be a little cautious.

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There is only one analyst that follows this, and he is neutral on it. This company is fine. It is a royalty structure of the A&W revenues across Canada. 5.1% yield which is a little attractive, but it is a 99% payout ratio, so would be a little cautious.

COMMENT
COMMENT
February 26, 2016

This doesn’t trade very much. He owns some, but it is not something he can put across his clients’ accounts, because he can’t buy enough. He likes this.

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This doesn’t trade very much. He owns some, but it is not something he can put across his clients’ accounts, because he can’t buy enough. He likes this.

COMMENT
COMMENT
January 11, 2016

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.

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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.

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