Q2 2026 A&W Food Services of Canada Inc Earnings Call Transcript
Key Points
- A&W Food Services of Canada Inc (TSX:AW) achieved same-store sales growth of 2.1% for Q2 2026, marking the strongest quarterly performance in over two years.
- The introduction of the Smash-style burger as a nationwide limited-time offering resonated strongly with guests, driving increases in both guest counts and average check.
- A&W opened eight new restaurants in Q2 2026, bringing the year-to-date total to 12, with a focus on expansion in Ontario and Quebec.
- The company reached a milestone in its Pret a Manger expansion by opening its first franchised prep shop at Vancouver International Airport.
- A&W's loyalty program, A&W Rewards, continues to see growth and is providing valuable consumer insights to enhance marketing strategies.
- Income before income taxes decreased by 7% to $16 million, largely due to increased general and administrative expenses.
- Net income for the quarter was $11.7 million, down from $12.5 million in Q2 2025.
- Adjusted EBITDA decreased by 4% to $24.4 million, primarily due to higher general and administrative expenses.
- Adjusted EBITDA margin decreased by 260 basis points to 34.5% from 37.1% in Q2 2025.
- General and administrative expenses increased by 18% due to costs associated with the biannual A&W National Convention and higher employee compensation.
Hello, everyone. Thank you for joining us, and welcome to the A&W Food Services of Canada Q2 2026 Earnings Call. After today's prepared remarks, we will host a question-and-answer session.
(Operator Instructions)
I will now hand the call over to Susan Senecal, President and CEO. Please go ahead.
Thanks, Chase, and good morning, everyone. Thanks for taking the call time to attend our call today. Sorry, my tongue got twisted up there. I'm Susan Senecal, President and CEO of A&W Food Services of Canada, and I'm joined this morning by A&W's Chief Financial Officer, Kelly Blankstein. Today, we are presenting A&W's results for the second quarter of fiscal 2026, which was a 12-week period that ended on June 14, 2026.
Before we begin, as a reminder, remarks on this call may include our expectations, future plans, and intentions that may constitute forward-looking information within the meaning of applicable securities laws in Canada.
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