Canada's A&W Food Services Q3 revenue rises on burger promotion

By Reuters News


Overview

  • Canada quick-service burger chain's fiscal Q3 revenue grew 11% yr/yr

  • Net income for fiscal Q3 rose yr/yr, driven by higher revenue and lower finance expense

  • Company opened 9 new A&W restaurants and 1 new Pret shop in Q3


Outlook

  • Company maintains 2026 Adjusted EBITDA outlook at C$103 mln to C$105 mln

  • A&W expects 2026 System Sales Growth of 2.5%-5.0% and Same Store Sales Growth of 0.5%-3.0%

  • Company plans to end 2026 with 1,112 to 1,120 A&W restaurants in Canada


Result Drivers

  • BURGER PROMOTION - Co said smash-style burger promotion drove 1.8% same store sales growth in Q3

  • NEW RESTAURANTS - Higher equipment and turnkey revenue reflected opening of six additional A&W restaurants and one Pret shop in Q3

  • SERVICE FEE MIGRATION - Co said increase in service fee revenue was due to migration of A&W restaurants to higher service fee rate


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

C$79.30 mln

Q3 Net Income

C$19.48 mln

Q3 Same Store Sales Growth

1.80%


Analyst Coverage

  • The one available analyst rating on the shares is "hold"

  • The average consensus recommendation for the restaurants & bars peer group is "buy."

  • Wall Street's median 12-month price target for A&W Food Services of Canada Inc is C$40.00, about 10.6% above its October 15 closing price of C$36.18

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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