From GlobeNewswire: 2025-05-07 18:09:00

The Keg Royalties Income Fund (TSX: KEG.UN) reports a 6.9% increase in Royalty Pool Sales to $193.8 million for the first quarter of 2025. KRL Average Sales per Operating Week also rose by 7.5% to $144,000 per Operating Week. Despite a 10.9% decrease in Distributable Cash to $0.365/Fund unit, the Fund paid a special cash distribution of $0.04/Fund unit.

Royalty income for the Fund increased by $501,000 or 6.9% to $7,751,000 in the first quarter of 2025. Distributable Cash available to pay distributions to public unitholders decreased by $505,000 to $4,147,000 in the same period. The Payout Ratio was 77.7% for the first quarter of 2025, compared to 69.3% for the same quarter in 2024.

The Fund remains financially stable with cash on hand of $2,443,000 and a positive Working Capital of $4,132,000 as of March 31, 2025. The Chairman of the Fund, Kip Woodward, expressed satisfaction with the financial results despite challenges in the full-service restaurant industry. Nick Dean, President of KRL, highlighted a 9.2% increase in Same Store Sales, attributing it to the focus on guest experience and value.

The Keg Royalties Income Fund (TSX: KEG.UN) is a trust that owns trademarks used by Keg Restaurants Ltd. The Fund earns a 4% royalty on the gross sales of Keg restaurants in the Royalty Pool. KRL, with over 100 restaurants and $700 million in annual System Sales, is a leading steakhouse operator in Canada and select U.S. markets. Forbes named KRL the top restaurant company to work for in Canada in 2025.

Investors in The Keg Royalties Income Fund are cautioned about risks and uncertainties in the casual dining segment. Forward-looking statements include factors such as market changes, competition, and economic conditions that may impact financial results. The Fund units have not been registered under the U.S. Securities Act of 1933 and are not available for sale in the United States. The contents of this press release have been approved by the Trustees of the Fund.



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