A&W Food Services of Canada Inc. reported Friday its third consecutive quarter of same store sales growth, with income before taxes more than doubling year-over-year in its third quarter of fiscal 2025.
For the 12-week period ended September 7, 2025, A&W reported same store sales growth of 1.4 per cent and system sales growth of 3.1 per cent compared to the same period in 2024. Total system sales reached $479.6 million, an increase of $14.5 million from the previous year.
“We are pleased to report our third consecutive quarter of positive Same Store Sales Growth, a significant achievement amidst a challenging macroeconomic environment which continues to create headwinds for sales at A&W restaurants,” said Susan Senecal, Chief Executive Officer of A&W Food Services.
Senecal attributed the performance to successful marketing initiatives and new value-focused menu offerings.
“The Q3 2025 Same Store Sales Growth of 1.4% is a reflection of a positive response to A&W’s marketing campaigns and value offerings, which have resonated with guests who are looking for both great taste and value,” she said. “Through the first three quarters of 2025, we’ve achieved System Sales Growth of 2.9% which is attributed to both the positive Same Store Sales Growth and the opening of new A&W restaurants which is supported by our partnership with Suncor.”
Net income before income taxes for the quarter was $23.6 million, an increase of 163 per cent from $9.0 million in Q3 2024. Adjusted EBITDA rose to $25.8 million from $24.7 million, with a corresponding increase in margin from 32.5 per cent to 36.2 per cent.
The company said the jump in pre-tax income was largely due to the cessation of royalty expenses following a transaction completed in October 2024, in which Food Services acquired all outstanding units of A&W Revenue Royalties Income Fund. Lower operating costs also contributed to the increase, particularly $7.0 million in reduced marketing-related expenses through the National Advertising Fund.
Total revenue declined by six per cent year-over-year to $71.2 million, primarily due to the timing of new restaurant openings—seven fewer locations were opened in Q3 2025 compared to Q3 2024.
In the year-to-date period, A&W reported total revenue of $201.1 million, up from $199.1 million a year earlier. Net income for the first 36 weeks of fiscal 2025 was $39.3 million, compared to $22.8 million in the same period last year.
A&W declared a quarterly cash dividend of $0.480 per share on September 2, 2025, and said it remains committed to maintaining that level going forward.
Looking ahead, the company reaffirmed its full-year financial outlook, including Adjusted EBITDA guidance of $96 million to $101 million and a projected system sales growth rate between 1.5 and 4.5 per cent.
A&W operates over 1,070 quick-service restaurants across Canada and expects to expand to between 1,085 and 1,100 locations by the end of fiscal 2025.
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