Not for distribution to U.S. News wire services or dissemination in the U.S. VANCOUVER, British Columbia, Aug. 13, 2025 (GLOBE NEWSWIRE) -- The Keg Royalties Income Fund (the “Fund”) (TSX: KEG.UN) is pleased to announce its financial results for the three months ended June 30, 2025 (the “quarter”) and the six months ended June 30, 2025 (“YTD”). On May 5, 2025, the Fund entered into a non-binding letter of intent to which one or more affiliates of Fairfax Financial Holdings Limited (“Fairfax”) will acquire a ...

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. [2] - Keg Restaurants Ltd. 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] Financial Performance - The Fund declared a distribution of $0.0946 per unit for July 2025, payable to unitholders of record as of July 21, 2025, with payment scheduled for July 31, 2025 [1] Operational Highlights - Keg Restaurants Ltd. employs approximately 10,000 individuals and continues to expand its restaurant system through both corporate and franchised locations [3] - KRL has been recognized as the number one restaurant company to work for in Canada according to Forbes' "Canada's Best Employers 2025" survey [3]

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]

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].