BRITISH COLUMBIA

A&W royalty fund growing restaurant pool by 23 locations in January

12/18/2012 08:14 EST | Updated 02/17/2013 05:12 EST
VANCOUVER - A&W Revenue Royalties Income Fund (TSX:AW.UN) is growing the pool of restaurants that generates the fund's revenues and distributions to investors.

The pool will grow by 23 locations, bringing the total to 760, effective on Jan. 5.

The annual adjustment includes the addition of 29 new restaurants opened between October 2011 and September 2012. They have estimated annualized sales totalling $33 million.

That increase is partially offset by the permanent closure of six locations, which had about $3 million of sales on an annualized basis.

A&W said the restaurants added to the pool in January 2012 did better than expected. The actual annual sales for the 28 new restaurants was nearly $30.8 million, about $2.1 million higher than originally estimated.

The restaurant chain is managed on the fund's behalf by A&W Food Services of Canada Inc., which receives securities that can be exchanged for units in the publicly traded fund in return for the services.