Review of A & W Food Services of Canada

FEB 13, 2025 - AW possessed an impressive operational profile with a track record of strong same-store-sales growth and healthy store count expansion. The strategic transaction of converting to a corporation transformed AW into a more compelling investment story. AW now, not only has an attractive dividend yield, but is also a growth-focused company that offers decent upside potential from capital appreciation as the company expands the burger chain. In addition, this transition could attract institutional ownership and research analyst coverage, which could help improve the company’s valuation. AW also prioritizes balance sheet optimization, which balances between maintaining a dividend and optimizing the capital structure to create shareholder value. We are initiating our rating at a “B”.

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A & W Food Services of Canada Inc. (AW)

Q: To clarify on David's earlier food service question, as I'm looking at these too, and don't hold any currently. You would go with AW first since it's also in the Income Portfolio, before adding to others, Boston Pizza being the best of the rest? Is there any need/reason to hold more than A&W?

Read Answer Asked by Craig on April 15, 2025

Q: For some diversification along with some income I’m debating adding a bit more food service industry. I already own a half position of AW but would consider adding another half of same or go with a different half such as PZA, KEG.UN, BPF.UN, or SRV.UN. Thoughts

Read Answer Asked by David on April 14, 2025

A & W Food Services of Canada Inc. (AW)

Q: Hello, I have noticed that AW has moved up $2 over the last 2 days which seems like a lot for a stock that has been moving down for the last 4 months. Other than an RBC target price of $34 has there been anything else to get this stock moving? Thanks,

Read Answer Asked by Mark on March 28, 2025