A & W Food Services of Canada (AW) Q3 2026 earnings summary

Executive summary

• Q3 system sales rose 3.8% YoY to $497.615 million; same-store sales grew 1.8%, led by a five-week national smashed-burger promotion.

• Revenue increased 11% to $79.3 million and Adjusted EBITDA rose 3% to $26.6 million; Adjusted EBITDA margin declined to 33.6% from 36.2%.

• New strategy targets stronger relevance with younger QSR guests through menu innovation, improved guest experience, franchise growth and Pret expansion.

Financial highlights

• Q3 revenue was $79.255 million versus $71.205 million YoY; income before income taxes was $26.387 million versus $23.611 million.

• Q3 net income rose to $19.5 million from $17.6 million; EPS was $0.80 versus $0.71.

• Operating costs increased 27% to $40.5 million, including $3.4 million of higher advertising-fund marketing costs; G&A rose 5% to $11.4 million.

• YTD revenue rose to $209.5 million from $201.1 million; Adjusted EBITDA was $70.6 million versus $70.7 million.

Outlook and guidance

• FY2026 guidance unchanged: system sales growth of 2.5%–5.0%, same-store sales growth of 0.5%–3.0%, Adjusted EBITDA of $103 million–$105 million, and 1,112–1,120 A&W restaurants at year-end.

• FY2026 is a 53-week period ending Jan. 3, 2027; sales growth guidance uses 52 weeks for comparability.

• Expect 3–4 franchised Pret shops open by FY2026 end; additional leases have been secured.

• Growth plans include new A&W formats, further openings with franchisees and Petro-Canada, and Pret locations in pedestrian-oriented sites.