Burger Chains In Canada Face Fluctuations, While A&W Reports Huge Profits

A&W Restaurants Inc., a specialised fast-food chain, recently reported a whopping profit in its sales this year, compared to last year. It has announced that it would increase the monthly payments to its shareholders by AU$0.16 per unit up from its previous payment. However, since the last month, the profit ratio of food chains in Canada has been fluctuating.

The profit reported to have increased by 12.8 percent in the first quarter of the year amounting to AU$336.01 million gain from AU$297.97 million a year ago. The company’s ongoing sales improved 8.9 percent, after it started selling fast food at restaurants little longer than a year ago. Based on the A&W Revenue Royalties Income Fund 's unit price, it is expected to yield about 5.8 per cent.

The announcements came just after a month it was declared that food chain McDonalds was shutting down many of its restaurants in the United States and struggled hard to keep the business going. With at least 40 years of service, McDonalds was shrinking for the first time.

With A&W sales soaring, Tim Horton was attracting huge amount of customers. It was almost at par with Burger King in 2013 and soon became the most trusted brand in Canada, statistics data showed. However, the famous food joints have been facing stiff competition with the increasing number of “fast casual” food joints opening up. But A&W has been bucking the trend, reported Global News.

A&W reported to have 814 restaurants that is a straight up from 790 chains a year ago in the royalty pool. For three months until June, they gained a profit of AU$9.72 million which was only AU$5.67 million last year. Paul Hollands, president and chief executive of A&W Food Services said the results are “noteworthy given our strong results from the same quarter last year.”

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