The company reported net income of C$11.7 million for the period ended June 14, trailing the C$12.5 million recorded during the same quarter last year. This dip was primarily driven by an 18% surge in general and administrative costs, an expected outcome of hosting the biennial A&W National Convention.
In section Market Quotes
A&W Canada Profit Dips as Convention Costs Offset Revenue Gains
A 3% revenue boost at A&W Food Services of Canada failed to shield bottom-line growth during the second quarter, as the hamburger chain saw net income slip to 11.7 million Canadian dollars. The decline reflects a sharp spike in administrative expenses tied to the company’s large-scale national franchisee convention.
Despite the profit pressure, top-line performance remained resilient. Total revenue climbed to C$70.8 million, bolstered by a 3.9% increase in system sales, which hit C$469.7 million. Chief Executive Susan Senecal pointed to a 2.1% rise in same-store sales—the company’s strongest growth metric in over two years—as evidence of successful menu and marketing strategies. A&W continues to expand its physical footprint, closing the quarter with 1,105 locations compared to 1,082 a year ago.
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