Core Insights - Diversified Royalty Corp. reported strong financial results for Q1 2025, with adjusted revenue of $17.0 million, up 3.6% from $16.4 million in Q1 2024, driven by positive same-store sales growth (SSSG) from key partners [3][5][6] - The company continues to experience mixed results from its variable royalty partners, while fixed royalty partners maintained their payments [3][4] - Leadership changes include the promotion of Greg Gutmanis to President and Chief Financial Officer, effective July 1, 2025, indicating a strategic focus on operational oversight and growth [20][21][22] Financial Performance - Q1 2025 revenue was $15.6 million, a 3.7% increase from $15.1 million in Q1 2024 [5][17] - Distributable cash rose to $11.1 million, up 16.3% from $9.6 million in Q1 2024, with a payout ratio of 93.8% [5][15][16] - Net income for Q1 2025 was $8.0 million, compared to $7.5 million in Q1 2024, attributed to higher adjusted revenues and lower expenses [17] Royalty Partner Updates - Mr. Lube + Tires achieved SSSG of 9.5% in Q1 2025, although down from 14.6% in Q1 2024, reflecting sustained growth [7] - Stratus reported royalty income of $2.4 million, with a fixed royalty increase of 5% effective November 2024 [8] - Nurse Next Door's royalty entitlement was $1.3 million, growing at a fixed rate of 2% per annum [9] - Mr. Mikes saw SSSG of 1.5%, a recovery from -5.5% in Q1 2024, indicating improved guest traffic [10] - Oxford Learning Centres reported SSSG of 5.5%, a significant improvement from -2.1% in Q1 2024 [11] - AIR MILES® royalty income decreased by 15.2% to $0.8 million due to ongoing softness in the rewards program [12] - Sutton's royalty income was $0.9 million, including a 20% deferral, compared to $1.1 million in Q1 2024 [13] - BarBurrito generated $2.1 million in royalty income, with a fixed growth rate of 4% per annum starting March 2025 [14] Leadership and Governance - The upcoming Annual General Meeting will address the election of directors and the appointment of KPMG LLP as auditors [19] - Sean Morrison will continue as CEO, focusing on strategic direction, while Greg Gutmanis will oversee day-to-day operations and growth initiatives [20][22]

Group 1 - The Keg Royalties Income Fund announced the election of all nominees as trustees at the annual meeting, with Christopher Charles Woodward receiving 93.26% of votes and Tim Kerr receiving 94.69% [1] - KPMG LLP was appointed as the Fund's auditors for the 2025 fiscal year, with the decision passed by a majority of votes at the meeting [1] Group 2 - The Keg Royalties Income Fund is a limited purpose, open-ended trust that owns trademarks and related intellectual property used by Keg Restaurants Ltd., receiving a royalty of 4% of gross sales from Keg restaurants [2] - Keg Restaurants Ltd. operates over 100 restaurants, employs approximately 10,000 people, and has annual system sales exceeding $700 million, making it a leading operator and franchisor of steakhouses in Canada [3] - Keg Restaurants Ltd. was recognized as the number one restaurant company to work for in Canada in Forbes' "Canada's Best Employers 2025" survey [3]

Company Overview - The Keg Royalties Income Fund is a limited purpose, open-ended trust established under Ontario law, owning trademarks and related intellectual property used by Keg Restaurants Ltd. (KRL) [2] - KRL operates over 100 restaurants and has annual system sales exceeding $700 million, making it the leading operator and franchisor of steakhouse restaurants in Canada [3] - KRL has approximately 10,000 employees and continues to expand its restaurant system through corporate and franchised Keg steakhouses [3] Financial Performance - The Fund declared a May 2025 distribution of $0.0946 per unit, payable to unitholders of record as of May 21, 2025, with payment scheduled for May 30, 2025 [1] Industry Recognition - KRL was named the number one restaurant company to work for in Canada in Forbes' "Canada's Best Employers 2025" survey [3]