From GlobeNewswire: 2025-03-06 19:25:00

The Keg Royalties Income Fund (TSX: KEG.UN) reports a 7.1% decrease in Royalty Pool Sales to $188.2M for Q4 2024, and a 3.0% decrease to $719.5M YTD. Keg Restaurants Ltd. sees Average Sales per Operating Week up 0.4% to $140,000 for the quarter. Same Store Sales were up 2.6% for the quarter, but down 0.7% YTD. Distributable Cash increased by 9.9% to $0.262/Fund unit for the quarter and by 7.7% to $1.248/Fund unit YTD. A special cash distribution of $0.04/Fund unit was declared and paid in January 2025. Payout Ratio was 123.8% for the quarter and 94.2% YTD.

Royalty income decreased by 7.1% from $8,101,000 in Q4 2023 to $7,527,000 in Q4 2024, and by 3.0% from $29,668,000 in 2023 to $28,782,000 in 2024. Distributable Cash available to pay distributions to public unitholders increased by $268,000 for the quarter and $1,016,000 YTD. Distributions to Fund unitholders decreased by $0.04/Fund unit for both the three and twelve month comparable periods due to a special distribution in 2023.

The Fund’s Distributable Cash in Q4 2024 was positively impacted by changes in non-cash Working Capital Before Classification of Class C and Exchangeable Partnership Units as Current Liabilities balances. The Fund remains financially well positioned with cash on hand of $2,065,000 and a positive Working Capital Before Classification of Class C and Exchangeable Partnership Units as Current Liabilities balance of $2,627,000 as of December 31, 2024. The Payout Ratio was 123.8% for the quarter and 94.2% for the year.

KRL President Nick Dean is pleased with the sales performance in Q4 2024, citing a 2.6% increase in Same Store Sales. Management’s focus on empowering the team and delivering a superior dining experience is expected to drive continued improvement into 2025. Chairman Kip Woodward is also pleased with the financial results, emphasizing the management’s solid focus on operating efficiencies and guest experience in challenging times.

The Keg Royalties Income Fund owns trademarks used by Keg Restaurants Ltd., receiving a 4% royalty on gross sales. KRL, with over 100 restaurants and annual System Sales exceeding $700 million, is the leading operator of steakhouse restaurants in Canada. The company has been recognized as the number one restaurant company to work for in Canada in Forbes “Canada’s Best Employers 2025” survey.

Investors should be cautious as forward-looking statements in the casual dining sector carry risks and uncertainties. Factors like historical same store sales growth, market changes, competition, and economic conditions can impact financial results. The Fund’s ability to adapt to market dynamics will be crucial for future success.



Read more at GlobeNewswire:: The Keg Royalties Income Fund Announces Fourth Quarter 2024