Canada · Delayed Price · Currency is CAD A & W Food Services of Canada Earnings Call Transcripts
Fiscal Year 2026
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Q3 same-store sales rose 1.8%, system sales grew 3.8%, and net income increased to CAD 19.5 million. FY2026 guidance was unchanged, while a new strategy prioritizes burger-brand growth, restaurant expansion and Pret.
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Q2 2026 saw 2.1% same-store sales growth, the best in over two years, driven by successful promotions and new product launches. Revenue rose 3% to CAD 70.8 million, while net income declined to CAD 11.7 million due to higher expenses. Guidance for 2026 remains unchanged.
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Q1 2026 saw flat same-store sales as Western growth offset Eastern declines from weather and macro headwinds. Revenue fell 3% year-over-year, but system sales and adjusted EBITDA were stable. Guidance for 2026 is unchanged, with continued expansion and focus on value and digital engagement.
Fiscal Year 2025
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Delivered revenue and system sales growth in 2025, with improved profitability and franchisee economics despite economic and competitive headwinds. Guidance for 2026 anticipates continued growth but reflects ongoing macro and weather-related challenges.
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Q3 2025 saw positive same-store sales and system sales growth, driven by value-focused menu initiatives and operational efficiencies. Adjusted EBITDA and margins improved, while revenue declined due to fewer new openings. The outlook remains stable despite ongoing economic headwinds.
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System sales grew 3.4% and same-store sales rose 1.6% in Q2 2025, with revenue up 7% and adjusted EBITDA up 18%. Strategic initiatives like the A&W Rewards launch and five-star operating system rollout drove operational gains, while expansion and value offerings supported growth.
Fiscal Year 2024
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2024 saw record system sales and adjusted EBITDA growth despite revenue decline from lower equipment sales, driven by a strategic focus on franchisee profitability, menu innovation, and a major corporate restructuring. Ongoing economic headwinds and weather impacted sales trends.