# A&w (aw.un)



## Davis (Nov 11, 2014)

Amy thoughts on this one? I am looking to reduce my exposure to REITs, and AW.UN nicely has the same distribution as Calloway CWT.UN (5.4%). I have been watching AW for a while. It's not particularly cheap right now, but it seems to be a money generator, and it looks like they are trying to position their product higher on the quality scale (promoting hormone-free beef), and so seem to be moving with consumer tastes. I already have a good position in Boston Pizza BPF.UN, so I am looking for something else. Comments?


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## indexxx (Oct 31, 2011)

I haven't done any analysis of their stock, but from a business model standpoint I personally don't see them growing much. The trend in quick serve is towards either lighter and healthier perception concepts like Chipotle, or for burgers, to more 'handcrafted' type products. A&W's food isn't that great- the only time I ever go there is when I drive to the Okanagan- I always stop at the Princeton store because they still do frosty mugs of root beer. But I could be off base of course- your due diligence may show something.


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## gibor365 (Apr 1, 2011)

> I personally don't see them growing much


 I prefer SRV.UN...better fundamentals and 9% yield


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## londoncalling (Sep 17, 2011)

One thing that I have noticed about A&W, at least in the prairies, is that they have moved into markets where they are the only fast food choice. Locations that want/need something but do not meet the population requirements for a McDs and for franchisers that would rather pay the smaller fee for a A&W than the price of a Timmy's. This worked well for subway. The only argument most present is that fast food is going away. I don't buy that argument. The population seems to be split into three camps. the health conscious, those that could care less and those that realize fast food on occasion is ok to consume. I am in camp 3. I will on occasion grab fast food when I am cramped for time or travelling even though it would not be my first choice. Others indulge on a rare craving. The artisan burger pitch is not sold on me. If I have the time/desire for a sit down meal out of the house I tend to shoot for something better than a chain meal. If I want a gourmet burger I will have that at home with my own BBQ or grill. I don't consider 5 guys, chipotle or whatever a nice meal/dinging experience even though on a dollar comparison it is much better value than MCD or A&W. The death of fast food has always been debated. I am sure these things companies will be around for quite some time. They have the $, knowledge and resources to ride the waves of consumer trends.

Cheers


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## nathan79 (Feb 21, 2011)

They have pretty much the best burgers out of the mainstream burger joints, not to mention the best onion rings and root beer. Their prices are a little high but they always seem busy when I go there. They do send out coupons quite frequently.

Their recent ad campaigns about hormone free beef show they are paying attention to customer interest toward more natural foods.

Stock price is down almost $2 from its high, so might be a decent entry point. I don't own it but I was also considering this or BPF...



gibor said:


> I prefer SRV.UN...better fundamentals and 9% yield


Which restaurants do they operate?


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## gibor365 (Apr 1, 2011)

nathan79 said:


> Which restaurants do they operate?


Jack Astorâ€™s Bar and Grill, Alice Fazooliâ€™s!, and Canyon Creek Chop House; and SIRâ€™s signature restaurant brands, including reds, Far Niente / Four and Petit Four, and the Loose Moose Tap & Grill


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## birdman (Feb 12, 2013)

My vote for the burgers and Onion Rings as well. If more people would try them the better their stock should do.


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## Jon_Snow (May 20, 2009)

Ah, A&W onion rings - one of the best things in this world.

Too bad I've completely forsaken fast food and am a healthy eating, fitness nut now.

Have held Boston Pizza for a long time and will continue to do so.


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## CPA Candidate (Dec 15, 2013)

nathan79 said:


> They have pretty much the best burgers out of the mainstream burger joints, not to mention the best onion rings and root beer. Their prices are a little high but they always seem busy when I go there. They do send out coupons quite frequently.


I agree, the food is much better than either MCD or BK. I think their recent marketing campaigns have been successful, stressing the quality of their ingredients.

In this restaurant area there is a new player, diversified royalty (DIV), that purchased a 6% top line royalty of Original Joe's, Elephant and Castle and State & Main restaurants. They are close to making a different royalty purchase in a different line of business, hence "diversified". Something to consider, about a 7% yield right now.


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## OptsyEagle (Nov 29, 2009)

Stop this. You guys are making me hungry! lol.


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## gibor365 (Apr 1, 2011)

CPA Candidate said:


> I agree, the food is much better than either MCD or BK. I think their recent marketing campaigns have been successful, stressing the quality of their ingredients.
> 
> In this restaurant area there is a new player, diversified royalty (DIV), that purchased a 6% top line royalty of Original Joe's, Elephant and Castle and State & Main restaurants. They are close to making a different royalty purchase in a different line of business, hence "diversified". Something to consider, about a 7% yield right now.


DIV is pretty interesting.... from what I see they started to pay dividends 2 months ago...
Their model is similar to Alaris Royalty Corp AD:TSX


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## londoncalling (Sep 17, 2011)

CPA Candidate said:


> I agree, the food is much better than either MCD or BK. I think their recent marketing campaigns have been successful, stressing the quality of their ingredients.
> 
> In this restaurant area there is a new player, diversified royalty (DIV), that purchased a 6% top line royalty of Original Joe's, Elephant and Castle and State & Main restaurants. They are close to making a different royalty purchase in a different line of business, hence "diversified". Something to consider, about a 7% yield right now.


Not so much a new player but a previous player with a new name and style. Have to take a closer look but the story intrigues me.


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## newfoundlander61 (Feb 6, 2011)

"A&W Revenue Royalties Income Fund (AW.UN-T) announced that it’s resuming monthly distributions to its unitholders in the amount of 10 cents per trust unit. The next distribution for June will be paid on July 31.

The fund also announced that A&W Food Services of Canada Inc. will be resuming regular royalty payments. The fund said it restarted monthly distributions "on the basis of the recent improvement in the performance of the A&W restaurants in the royalty pool and the resumption of royalty payments by A&W Food Services."

The company also said same-store sales growth for A&W Restaurants in the royalty pool fell by 31.6 per cent for the second quarter of 2020 as compared to the second quarter of 2019."

Source: Globe and Mail


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## Eder (Feb 16, 2011)

Very bullish move...I think I'll be getting back in.


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## MrMatt (Dec 21, 2011)

Jon_Snow said:


> Ah, A&W onion rings - one of the best things in this world.
> 
> Too bad I've completely forsaken fast food and am a healthy eating, fitness nut now.
> 
> Have held Boston Pizza for a long time and will continue to do so.


Best onion rings and best fast food milkshakes, but I haven't been there for years.
I don't know anyone who has been there for years.

They do have the classic cars and lots of older adults, which really isn't a market I'm bullish on.


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## Eder (Feb 16, 2011)

I use https://awcoupon.ca/en for good deals every once in awhile....2 Teen Burgers for $7.99 among other deals.. Find a good A&W or ask around...quality varies. I think the best I have been to is the one in Summerland BC.


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## newfoundlander61 (Feb 6, 2011)

I held on to my 725 shares after they announced the temp dividend suspension so it nice to see it back. Wasn't expecting this until they open restaurants for dining in so that was much faster.


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## nobleea (Oct 11, 2013)

MrMatt said:


> Best onion rings and best fast food milkshakes, but I haven't been there for years.
> I don't know anyone who has been there for years.
> 
> They do have the classic cars and lots of older adults, which really isn't a market I'm bullish on.


At least out here, A&W is the first true fast food chain to set up shop in small towns (after Subway), so it's a pretty safe bet you'll find an easily accessible one on any given road trip. It's usually our go to fast food when driving long distances as we can always find one. When at home, we rarely do fast food (maybe 10 times a year), but it's certainly in the rotation. It's the closest fast food place to my work, so I will go there a couple times a year to pick up lunch when we don't have leftovers.


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## MrBlackhill (Jun 10, 2020)

newfoundlander61 said:


> "A&W Revenue Royalties Income Fund (AW.UN-T) announced that it’s resuming monthly distributions to its unitholders in the amount of 10 cents per trust unit. The next distribution for June will be paid on July 31.
> 
> The fund also announced that A&W Food Services of Canada Inc. will be resuming regular royalty payments. The fund said it restarted monthly distributions "on the basis of the recent improvement in the performance of the A&W restaurants in the royalty pool and the resumption of royalty payments by A&W Food Services."
> 
> ...


Nice job! That gave the stock a +15% push! I can't wait to see that happen to my bleeding stocks...


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## newfoundlander61 (Feb 6, 2011)

I purchased this stock in Nov 2019, dividend was cut during Pandemic but they started up again at a reduced amount. Since owning this it appears to me that this is not one that is likely to appreciate in price too much. It is finally above my purchase price slightly, I am thinking about letting it go with the dividends since then it is in the positive. Any opinions on its future/dividend increase or is it likely to just go along withing a narrow trading range.


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## KaeJS (Sep 28, 2010)

I own a small amount.
I don't expect banger returns, but I will keep holding with no intention to sell. I expect a solid 7% return on average from this (including divs).

Lots of their locations are in malls, so there still might be some more price appreciation to go in the next year if things return to normal. Just my 2 cents.


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## Eder (Feb 16, 2011)

My take on it is I like the menu at A&W for a fast food joint. Most of my family & friends think A&W not only has the best burgers but also the most healthy. Whether that is true or not I don't care, I do care about the perception. Same reason as buying green oriented utilities...perception.

For these reasons I have owned A&W over the years on & off and have made coin on them.


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## KaeJS (Sep 28, 2010)

I think Eder has a great point here. Lots of my friends have the same perception.


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## Retiredguy (Jul 24, 2013)

A&W. Just upped the monthly. 11.1% .135 to .15


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## milhouse (Nov 16, 2016)

Looks like AW.un is going to trial some form of Pret A Manger in Canada.
For anyone not familiar with Pret A Manger, it's kind of a grab and go pre-made sandwich chain out of the UK. The news kind of caught my eye because we'll hit up a Pret A Manger a couple of times when travelling in the UK. Pretty tasty sandwiches even though they are premade.


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## KaeJS (Sep 28, 2010)

milhouse said:


> Looks like AW.un is going to trial some form of Pret A Manger in Canada.
> For anyone not familiar with Pret A Manger, it's kind of a grab and go pre-made sandwich chain out of the UK. The news kind of caught my eye because we'll hit up a Pret A Manger a couple of times when travelling in the UK. Pretty tasty sandwiches even though they are premade.


Thank you for posting.


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## newfoundlander61 (Feb 6, 2011)

There are lots of grab and go sandwich options available, not sure how this will catch on.


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