All references to "Q3 2025" are to Food Services' 12-week period ended September 7, 2025, to "YTD 2025" are to Food Services' 36-week period ended September 7, 2025, to "Q3 2024" are to Food Services' 12-week period ended September 8, 2024 and to "YTD 2024" are to Food Services' 36-week period ended September 8, 2024. The fiscal 2025 year is 52 weeks and ends on December 28, 2025 ("Fiscal 2025").
"We are pleased to report our third consecutive quarter of positive Same Store Sales Growth, a significant achievement amidst a challenging macroeconomic environment which continues to create headwinds for sales at A&W restaurants" announced Susan Senecal, Chief Executive Officer. "The Q3 2025 Same Store Sales Growth(i) of 1.4% is a reflection of a positive response to A&W's marketing campaigns and value offerings, which have resonated with guests who are looking for both great taste and value," added Ms. Senecal. "Through the first three quarters of 2025, we've achieved System Sales Growth(i) of 2.9% which is attributed to both the positive Same Store Sales Growth and the opening of new A&W restaurants which is supported by our partnership with Suncor."
(i) System Sales Growth and Same Store Sales Growth are non-IFRS ratios and supplementary financial measures. Please see the "Non-IFRS Measures" section of this news release for further details.
Q3 FINANCIAL HIGHLIGHTS
For Q3 2025, compared to Q3 2024
System Sales(i) of $479.6 million increased by $14.5 million (3.1%)
Revenue decreased by $4.8 million (6%) to $71.2 million, due to the timing of new A&W restaurant openings which resulted in seven fewer openings in Q3 2025 as compared to Q3 2024
Income before income taxes increased by $14.6 million (163%) to $23.6 million
Adjusted EBITDA(i) increased by $1.1 million (5%) to $25.8 million
Operating costs decreased by $14.2 million (31%) to $31.8 million, of which $7.0M is attributable to decreased marketing-related costs incurred by the National Advertising Fund
General and administrative expenses were consistent at $10.8 million
Cash Dividend of $0.480 per share declared on September 2, 2025
Opened 3 new A&W restaurants
(i)
System Sales and Adjusted EBITDA are non-IFRS financial measures. Please see the "Non-IFRS Measures" section of this news release for further details.
SUMMARY OF RESULTS
(in thousands of Canadian $)
Q3
2025
Q3
2024
YTD
2025
YTD
2024
Financial Summary
Revenue from franchising
65,301
69,940
184,215
181,986
Revenue from corporate restaurants
5,904
6,061
16,900
17,117
Total revenue
71,205
76,001
201,115
199,103
Operating costs
(31,773)
(45,962)
(101,740)
(108,080)
General and administrative expenses
(10,786)
(10,762)
(32,796)
(33,578)
Royalty expense
-
(13,742)
-
(38,260)
Net finance expense
(3,615)
(233)
(11,149)
(1,067)
Loss on interest rate swap
(1,420)
-
(2,177)
-
Amortization of deferred gain
-
880
-
2,641
Share of income from associates
-
2,786
-
8,230
Income before income taxes
23,611
8,968
53,253
28,989
Income tax expense
(6,053)
(2,482)
(13,912)
(6,198)
Net income
17,558
6,486
39,341
22,791
Net cash generated from operating activities
17,200
26,976
22,501
45,074
Other Metrics
System Sales(i)
479,607
465,104
1,328,822
1,291,682
System Sales Growth(i)
3.1 %
0.4 %
2.9 %
1.3 %
Same Store Sales Growth(i)
1.4 %
-1.0 %
1.3 %
0.0 %
Net annual restaurant unit growth(ii)
1.4 %
2.0 %
1.4 %
2.0 %
Adjusted EBITDA(i)
25,793
24,677
70,714
65,542
(i)
System Sales, System Sales Growth, Same Store Sales Growth, and Adjusted EBITDA are non-IFRS financial measures, non-IFRS ratios and supplementary financial measures. Please see the "Non-IFRS Measures" section of this news release for further details.
(ii)
Net annual restaurant unit growth reflects the percent increase in A&W restaurants at the ending of the reporting period as compared to the end of the prior year comparable reporting period on a trailing 4 quarter basis.
On October 17, 2024, A&W completed a transaction (the "Transaction") in which Food Services indirectly acquired the trademarks used in the A&W business in Canada through the acquisition of all of the units of A&W Revenue Royalties Income ...
