The Keg Royalties Income Fund Announces First Quarter 2025 Results

Core Insights - The Keg Royalties Income Fund reported financial results for Q1 2025, showing a positive trend in sales and income despite challenges in the full-service restaurant sector [1][3][7]. Financial Performance - Royalty Pool Sales for the 104 Keg restaurants reached $193.776 million, an increase of $12.527 million or 6.9% compared to Q1 2024 [3][21]. - Royalty income rose by $501,000 or 6.9%, from $7.250 million in Q1 2024 to $7.751 million in Q1 2025 [3][21]. - Distributable Cash available for distributions decreased by $505,000 to $4.147 million ($0.365 per Fund unit) in Q1 2025, down from $4.652 million ($0.410 per Fund unit) in Q1 2024 [4][21]. - Regular cash distributions remained stable at $3.222 million ($0.284 per Fund unit) for both Q1 2025 and Q1 2024 [4][21]. - The Payout Ratio increased to 77.7% in Q1 2025 from 69.3% in Q1 2024 [6][21]. Operational Highlights - Same Store Sales increased by 9.2% compared to the same quarter in the previous year, attributed to Keg's focus on guest experience and value [7][10]. - KRL's Average Sales per Operating Week rose by 7.5% to $144,000 for the quarter [10]. Company Overview - Keg Restaurants Ltd. operates over 100 restaurants and has annual System Sales exceeding $700 million, making it a leading operator in the Canadian steakhouse market [29]. - The company has been recognized as the number one restaurant company to work for in Canada according to Forbes' "Canada's Best Employers 2025" survey [29].