A&W Food Services of Canada Inc. announced Thursday its financial results for the 12-week period ended March 22, 2026.
“Our first quarter results reflect a tale of two markets, underscoring both the resilience of our brand and the regional headwinds faced during the first couple of months of 2026. Nationally, our Same Store Sales Growth(i) was close to flat at -0.4%, and was the outcome of positive Same Store Sales Growth in Western Canada offset by negative Same Store Sales Growth in Eastern Canada. Our restaurants in the West achieved growth in guest counts and outperformed the market, giving us confidence that our strategic marketing and value-oriented offerings continue to resonate with Canadians. Conversely, A&W restaurants located in the Eastern provinces experienced a decline in guest counts which was primarily driven by severe weather events that forced temporary closures and hindered guest access to restaurants and delivery services. The weather events, alongside the non-recurrence of last year’s federal tax holiday, created marked differences in quarter over quarter sales growth in the Eastern provinces,” said Susan Senecal, President and CEO.
“In Ontario specifically, we are navigating changing demographics and a complex macro-environment characterized by economic and consumer uncertainty and are committed to finding ways to meet the evolving needs of our guests as we move forward” added Ms. Senecal. “Looking ahead, we are excited about the progress being made to expand the Pret A Manger brand in Canada and are pleased to share that we have secured leases for several new locations and expect to open three to four franchised Pret locations by the end of the year.”
FIRST QUARTER HIGHLIGHTS
For Q1 2026, compared to Q1 2025
- System Sales of $402.8 million increased by $5.9 million (1.5%)
- Revenue decreased by $1.7 million (3%) to $59.4 million
- Operating costs decreased by $0.6 million (2%) to $33.3 million
- General and administrative expenses increased by $0.8 million (7%) to $11.7 million
- Income before income taxes increased by $1.2 million (10%) to $13.7 million
- Adjusted EBITDA of $19.5 million was consistent with Q1 2025 of $19.4 million and Adjusted EBITDA Margin increased 110 bps to 32.9% from 31.8%
- Cash Dividend of $0.480 per share was declared on March 5, 2026 and paid March 31, 2026
- Opened 4 new A&W restaurants and 1 new corporately owned Pret location
- Secured leases for additional Pret locations and expect to open three to four franchised locations by the end of Fiscal 2026, with construction starting this summer.
More from Retail Insider:
