Q: Please comment AW.un's Q2 results and news today resulting in a gaintic leap of some 17% to $33.45 current price. Txs for U usual great views & services
5i Research Answer:
We have comments posted on the transaction details and our thoughts around electing for the $37.00 per unit or shares in the new company.
For Q2 2024, the royalty income increased by 1.5%, and its same store sales growth was 0.3%. A&W opened nine new restaurants in the first two quarters, and management is pleased with the marketing campaigns and promotions that it is running. This growth rate was lower than in the prior year, but the total restaurants in the pool grew compared to last year, and cash from operations grew against the prior year. Overall, this was a decent quarter for the company and we feel its proposed merger transaction is the right call and helps to streamline and clean up its structure.