VANCOUVER – A&W is increasing its payment to shareholders, it said Tuesday, as the burger chain posted a bigger profit compared with a year ago.
Sales in the latest quarter at A&W Revenue Royalties Income Fund climbed 12.8 per cent to $249.1 million, up from $220.9 million a year ago.
Fast food sold at restaurants opened longer than a year — a key metric that shows the ongoing pace of sales — improved 8.9 per cent.
The results come as bigger fast-food rivals, chief among them McDonald’s, struggle to keep customers coming back through their doors while fast food players come under pressure from so-called “fast casual” newcomers posting stronger sales gains.
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But A&W appears to be bucking the trend.
The burger chain had 814 restaurants in the royalty pool during the quarter, up from 790 last year.
The increase came as the fund reported a profit of $7.2 million for the three months ended June 14, up from a profit of $4.2 million a year ago.
WATCH: There is a big shift going on right now in the fast food industry. John Hadden explains Part 1 of “Fast Food Shift”.
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