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A & W Food Services of Canada (AW) investor relations material
A & W Food Services of Canada Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved third consecutive quarter of positive same-store sales growth, with Q3 2025 same-store sales up 1.4% and system sales up 3.1% year-over-year, amid challenging macroeconomic conditions.
Operates 1,084 franchised and 10 corporate restaurants, plus one Pret A Manger, serving over 125 million guests annually as of September 7, 2025.
Value-driven menu initiatives, including new value deals and the $4.99 Teen Burger promotion, drove increased guest counts and improved accessibility.
Maintains a strong brand reputation, ranked as Canada's strongest brand and #1 in several food categories.
Continued progress on strategic initiatives such as the five-star operating system, A&W Rewards, and Pret A Manger expansion.
Financial highlights
Q3 2025 system sales reached $479.6 million, up 3.1% year-over-year; YTD 2025 system sales were $1.33 billion, up 2.9%.
Adjusted EBITDA rose 5% to $25.8 million, with margin improving to 36.2% from 32.5% in Q3 2024; YTD adjusted EBITDA was $70.7 million.
Income before income taxes increased 163% to $23.6 million, largely due to the cessation of royalty expense after the October 2024 combination transaction.
Net income for Q3 2025 was $17.6 million, up from $6.5 million in Q3 2024.
Revenue decreased by $4.8 million to $71.2 million due to fewer new restaurant openings.
Outlook and guidance
2025 financial outlook projects annual same-store sales growth between 0.0% and 3.0%, system sales growth between 1.5% and 4.5%, and adjusted EBITDA of $96 million–$101 million.
Targeting 1,085–1,100 total units by year-end 2025.
Q4 2025 is off to a strong start, with further value-based promotions planned and continued focus on operational efficiencies.
Committed to maintaining current dividend level.
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