Fourth Quarter Sales Results Announced
January 29, 2009 // Franchising.com // Vancouver, - The Keg Royalties Income Fund (KEG.UN:TSX, the "Fund") and Keg Restaurants Ltd. today announced sales results for the 13 and 52-week periods ended December 28, 2008.
Keg Restaurants Ltd.'s ("KRL") total system sales for the 13 weeks ended December 28, 2008 were $116.8 million compared to $108.9 million for the 13 weeks ended December 30, 2007, an increase of $7.9 million or 7.3%. For the 52-week period ended December 28, 2008, The Keg's total system sales were $457.4 million compared to $428.2 million for the 52-week period ended December 30, 2007, an increase of $29.2 million or 6.8%. Royalty Pool Sales increased by 2.2% to $105.8 million for the quarter, and by 4.9% to $433.1 million for the year.
The Keg's same store sales (sales of restaurants that operated during the entire period of both the current and prior years) declined by 3.0% in Canada and by 16.3% in the United States for the 13-week period ended December 28, 2008, and increased by 2.0% in Canada and declined by 9.0% in the U.S. for the 52-week period ended December 28, 2008. After translating the sales of the U.S. restaurants into their Canadian dollar equivalent, consolidated same store sales decreased by 2.2% for the 13-week period and increased by 0.4% for the 52-week period.
"We are very pleased to report not only healthy top line growth for the year, but positive same store sales growth for 2008 as well," said Keg President & CEO, David Aisenstat. "The economy generally and the casual dining industry specifically are both experiencing remarkably difficult conditions. Our response has been, and will continue to be, to redouble our commitment to quality, service, value and an excellent guest experience for each visit to The Keg."
Vancouver-based Keg Restaurants Ltd. is the leading operator and franchisor of steakhouse restaurants in Canada and has a substantial presence in select regional markets in the United States. Keg Restaurants Ltd. continues to operate The Keg restaurant system and expand that system through the addition of both corporate and franchised Keg steakhouses. The Keg has been named one of the "50 Best Employers in Canada" for the past seven years by the Globe and Mail's Report on Business Magazine.
This press release may contain certain "forward looking" statements reflecting The Keg Royalties Income Fund's current expectations in the casual dining segment of the restaurant food industry. Investors are cautioned that all forward looking statements involve risks and uncertainties, including changes in market and competition, competitive developments, and potential downturns in economic conditions generally. Additional information on these and other potential factors that could affect the Fund's financial results are detailed in documents filed from time to time with the provincial securities commissions in Canada.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of the prospectus, nor shall there be any sale of the Fund units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state, province or jurisdiction. The Keg Royalties Income Fund units have not been, and will not be registered under the U.S. Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an application for exemption from the registration requirement under U.S. securities laws.
The Trustees of the Fund have approved the contents of this press release.