"We had solid operating performance in the quarter, with Pooled Revenue growth of 10.4% compared to Q3 last year and consolidated same store sales growth of 3.3%. In light of the solid performance of the Royalty Pooled Restaurants, the Fund Trustees approved a 5.3% increase to unitholder distributions during the quarter," said Peter Fowler, CEO of SIR Corp. "Scaddabush continues to have strong momentum with 7.8% same store sales growth in the quarter, and we are pursuing additional sites to expand this brand. We are also continuing our focus on immersive new guest experiences. Subsequent to quarter end, we unveiled the Freida's Beverage Kitchen concept on October 1 inside our newly renovated Jack Astor's location in Barrie, Ontario. With the combination of Jack Astor's and Freida's, we are defining a new era of social dining, with two distinct identities under one roof, offering shareable menu offerings and an array of iconic cocktails."
Q3 2025 Summary
Pooled Revenue totaled $71.4 million, an increase of 10.4% compared to $64.7 million for the three months ended September 30, 2024 ("Q3 2024").
Royalty income in the SIR Royalty Limited Partnership (the "Partnership") increased to $4.3 million, from $3.9 million in Q3 2024.
Equity income from the Partnership, which represents the Fund's pro rata share of the residual distributions of the Partnership, increased to $2.9 million, from $2.7 million in Q3 2024.
The Royalty Pooled Restaurants (the "Royalty Pool") had consolidated same store sales ("SSS")(1) growth of 3.3%.
Net earnings were $1.1 million, compared to $3.7 million in Q3 2024.
Distributable cash(2) totaled $2.6 million, or $0.31 (basic and diluted) per Fund Unit, and cash distributed to unitholders totaled $2.5 million, representing a payout ratio(2) of 95.7%. The payout ratio(2) since the Fund's inception in 2004, up to and including Q3 2025, is 99.9%, in line with the Fund's target payout ratio(2) of 100% per annum.
On July 9, 2025, the Fund Trustees approved a $0.005 increase to monthly unitholder cash distributions, resulting in an increase in the Fund's monthly cash distribution from $0.095 per Fund unit to $0.10 per Fund unit, effective for the distribution paid on July 31, 2025 to unitholders of record as at July 18, 2025.
The Jack Astor's® location in Barrie, Ontario was closed for 30 days during Q3 2025 for a major renovation and to train personnel on an entirely new service package, including new food and beverage menus, before re-opening on October 1, 2025. This renovation also included the unveiling of SIR Corp.'s ("SIR") new concept, Freida's Beverage KitchenTM ("Freida's") at this location. SIR has revamped the menu so that every dish is designed for sharing, including a new pizza category, making each meal at Jack Astor's and Freida's an event to mix, match, and indulge together. SIR has developed Freida's as a place where the art of cocktail creation is crafted and celebrated through iconic categories of Margaritas, Classics, Dirty Sodas and more.
Following the previously disclosed cybersecurity incident on September 26, 2024, SIR submitted a business interruption claim and worked with its insurance provider to determine the appropriate compensation for the disruption. During Q3 2025, SIR received the maximum payout for first party losses of $2.0 million under the cyber insurance policy. The approved proceeds paid to SIR were comprised of a $0.2 million reimbursement of costs directly attributable to the cybersecurity incident and $1.8 million toward the business interruption portion of the claim. The insurer had also previously paid directly to SIR's external IT consultants $0.4 million of the $0.5 million maximum for breach response costs. The Fund is not a party to SIR's cyber insurance policy. As such, none of the approved proceeds flowed to the Fund.
Q3 2025 Financial Results Summary
($000s except restaurants and per Unit amounts) (audited)
Three-month period ended
Nine-month period ended
Sept. 30,
2025
Sept. 30,
2024
Sept. 30,
2025
Sept. 30,
2024
Royalty Pooled Restaurants
52
49
52
49
Pooled Revenue generated by SIR Corp.
71,413
64,681
209,104
192,688
Royalty income to Partnership, 6% of Pooled Revenue
4,285
3,888
12,546
11,568
Partnership income allocated to Fund
2,885
2,722
8,303
8,049
Change in estimated fair value of the SIR Loan
(750)
2,000
500
4,750
Net earnings
1,126
3,749
5,695
9,839
Net Earnings per Fund Unit (basic)
$0.13
$0.45
$0.68
$1.17
