A&W Announces Financial Results for 2026 Quarter

A&W Food Services of Canada Inc. announced Friday its financial results for the 12-week and 36-week periods ended September 6, 2026, and stated it has launched a new mission and corporate strategy.

“Our third quarter results reflect continued momentum, with System Sales Growth of 3.8% and Same Store Sales Growth of 1.8%, driven primarily by the success of our smash-style burger promotion, which ran nationally for five of the 12 weeks in the quarter,” said Susan Senecal, President and CEO.

“We opened nine new A&W restaurants during the quarter, bringing our network to 1,113 restaurants across Canada, and opened our second franchised Pret shop at Vancouver International Airport, where early performance has been very encouraging. Today we are also introducing A&W’s new mission and corporate strategy. The Canadian consumer and the QSR landscape have changed significantly in recent years. We believe our new strategy is designed to make A&W #1 in Canada for today’s generation of QSR fans, while creating new opportunities for success for our franchisees.”

THIRD QUARTER HIGHLIGHTS

For Q3 2026, compared to Q3 2025

System Sales of $497.6 million increased by $18.0 million (3.8%)
Revenue increased by $8.1 million (11%) to $79.3 million
Operating costs increased by $8.7 million (27%) to $40.5 million, of which $3.4 million is attributable to increased marketing-related costs incurred by A&W’s advertising funds
General and administrative expenses increased by $0.6 million (5%) to $11.4 million
Income before income taxes increased by $2.8 million (12%) to $26.4 million
Adjusted EBITDA increased by $0.8 million (3%) to $26.6 million and Adjusted EBITDA Margin decreased 260 bps to 33.6% from 36.2%, reflecting a higher proportion of lower-margin equipment and turnkey revenue
Cash Dividend of $0.48 per share was declared on September 1, 2026 and paid September 29, 2026
Opened 9 new A&W restaurants and one new franchised Pret shop
Adopted a new mission statement and corporate strategy

NEW MISSION AND CORPORATE STRATEGY

The company said the Mission and Corporate Strategy will guide its priorities, investment decisions, and operating plans and provide the framework against which management will report progress.

“The consumer, business and economic environment for the Canadian quick service restaurant industry have changed significantly in recent years, and management believes these changes call for a renewed strategic direction. Elevated costs of living have affected households unevenly. Many guests have become more value-conscious, while others continue to spend on premium experiences. Our Strategy has evolved to address the change in circumstances and to seize the opportunity of sustained consumer interest in quality QSR. Excitingly, a new generation of guests, who discover food through social media and expect novelty, bold flavours, and globally inspired options, is becoming an increasingly important share of QSR visits,” said A&W.

New Mission

“To transform A&W to become #1 in Canada for today’s generation of QSR fans, delivering scroll-stopping food with iconic taste and quality, effortless convenience, and a consistently excellent experience that drives return visits, success and opportunity for franchisees.”

A&W said the Mission reflects the Company’s focus on building relevance with a new generation of QSR guests while remaining true to the taste and quality that have defined the A&W brand. It also reinforces the company’s view that sustained guest loyalty and franchisee success are closely linked, it said.

Strategic Directions

The company said it has established clear strategic directions to deliver on its Mission.

Expand and extend A&W’s position as a leading burger brand to grow market share, capture many more visits from the fastest growing consumer groups, and enhance success for A&W franchisees.

Priorities under this strategic direction include boosting interest and appeal with distinctive menu innovation including premium beef burgers, chicken, plant-based, and globally inspired offerings. The Company is also focused on delivering a consistently excellent experience to increase guest frequency by inspiring return visits.
Continue to support new restaurant growth, including developing new restaurant formats and business models that broaden access to franchise ownership and create additional opportunities for franchisees.
Ready for Pret – and more.

The Company plans to continue to expand the Pret brand, Canada’s only premium grab & go concept, by opening additional shops in airports, city streets and other captive pedestrian locations across Canada. The Company will also evaluate other complementary brands that offer opportunities for growth.