North Vancouver's A&W Revenue Royalties Income Fund (TSX:AW.UN) reported a 7.5% increase in sales during its 2008 fourth quarter, which ended December 31, 2008.
Store sales in the income fund's royalty pool increased 12.9% to $233 million from $206.5 million resulting in a 12.9% increase in royalty income for fund unit holders.
For the year, the company reported a 7.3% increase in sales growth to $710.5 million from $638.7 million. Royalty revenue for the income fund rose to $21.3 million from $19.2 million.
The fast-food franchiser opened 20 new restaurants last year, almost half in Ontario. It plans to change its franchising model in Ontario by offering territorial franchise rights to new franchisees. It's a significant shift for the company, which has thus far offered only single-site franchises in its 52-year history.
The company plans to make available about 25 multi-site development agreements in Ontario and a handful in Quebec and Atlantic Canada. Each franchise agreement will give a franchiser the opportunity to open up to six restaurants over a prescribed period in a geographical area.
A&W Revenue Royalties unit price range during the past week: between $12.40 and $12.50; 52-week high: $14.59; 52-week low: $8.40.