Canada's SIR Royalty Income Fund posts Q2 adjusted net loss

Overview

• Canada restaurant royalty trust's fiscal Q2 revenue from food and beverage rose 4% yr/yr

• Adjusted net loss reported for fiscal Q2, compared to adjusted net earnings last year

• Higher operating and corporate costs offset revenue gains in the quarter

Outlook

• SIR plans to develop three new Scaddabush locations, but timing and completion remain uncertain

• Company says restaurant opening and renovation plans will be adjusted as economic conditions evolve

Result Drivers

• NEW LOCATIONS - Revenue growth in Q2 was primarily driven by the opening of new Scaddabush and Jack Astors restaurants

• HIGHER COSTS - Increased operating and corporate costs offset revenue gains and contributed to adjusted net loss in Q2

• MODEST SAME-STORE SALES - Same-store sales grew 0.5% in Q2, contributing to overall revenue increase

Company press release: ID:nCNWf9XWma

Key Details

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