A&W Food Services of CanadaTSX:AW +0.08%16 Interest Coverage is 1.54 as of Mar. 2026, which is 8% above its 10-year median of 1.42. GuruFocus rates TSX:AW with a GF Score™ of 16/100. The stock has 6 warning signs investors should review. Among 261 Restaurants companies, A&W Food Services of Canada ranks worse than 79.31% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. A&W Food Services of Canada's
Operating Income
for the
three
months ended in Mar. 2026 was C$14.4 Mil. A&W Food Services of Canada's Interest Expense for the
three
months ended in Mar. 2026 was C$-9.3 Mil.
A&W Food Services of Canada's interest coverage for the quarter that ended in Mar. 2026 was 1.54.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. A&W Food Services of Canada Inc interest coverage is 2.24, which is low.
The historical rank and industry rank for A&W Food Services of Canada's Interest Coverage or its related term are showing as below:
TSX:AW'
s Interest Coverage Range Over the Past 10 Years
Min: 1.38 Med: 1.42 Max: 2.27
Current: 2.24
TSX:AW's Interest Coverage is ranked worse than 79.31% of 261
companies
in the Restaurants industry
Industry Median: 6.46
vs TSX:AW: 2.24
A&W Food Services of Canada (TSX:AW) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
A&W Food Services of Canada Interest Coverage Related Terms
A&W Food Services of Canada Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
A&W Food Services of Canada Interest Coverage Chart
TSX:AW vs MCD, SBUX, YUM: Interest Coverage Comparison
For the Restaurants subindustry, A&W Food Services of Canada's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
A&W Food Services of Canada Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, A&W Food Services of Canada's Interest Coverage distribution charts can be found below:
* The bar in red indicates where A&W Food Services of Canada's Interest Coverage falls into.
A&W Food Services of Canada Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A&W Food Services of Canada (TSX:AW) has a Interest Coverage of 1.54 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on A&W Food Services of Canada and its competitors. This is near median its historical median of 1.42. Over the past decade, A&W Food Services of Canada's Interest Coverage has ranged from 1.38 to 2.27. According to the industry distribution chart, A&W Food Services of Canada ranks #207 out of 261 companies in the Restaurants industry, placing it in the top 79.3%.
Is A&W Food Services of Canada's Interest Coverage too high?
A&W Food Services of Canada's current Interest Coverage of 1.54 is near median its 10-year median of 1.42. Over the past 10 years, this metric has ranged from a low of 1.38 to a high of 2.27. The Restaurants industry median Interest Coverage is 6.46. A&W Food Services of Canada's value of 1.54 is 76.2% below this industry median. Based on the distribution chart, A&W Food Services of Canada ranks #207 out of 261 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, A&W Food Services of Canada has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does A&W Food Services of Canada's Interest Coverage compare to MCD and SBUX?
According to the Restaurants industry distribution chart, A&W Food Services of Canada ranks #207 out of 261 companies for Interest Coverage. This places A&W Food Services of Canada in the lower half of its industry. The industry median Interest Coverage is 6.46. A&W Food Services of Canada's value of 1.54 is 76.2% below this benchmark. Historically, A&W Food Services of Canada's own Interest Coverage has ranged from 1.38 to 2.27 over the past decade. While the company's 10-year median is 1.42 vs. the industry median of 6.46, A&W Food Services of Canada has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.46, based on 261 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. A&W Food Services of Canada's current Interest Coverage of 1.54 is 76.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on A&W Food Services of Canada and its competitors. For the Restaurants industry, the median Interest Coverage is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. A&W Food Services of Canada's current Interest Coverage is 1.54, which is near median its own 10-year median of 1.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is A&W Food Services of Canada stock overvalued right now?
A&W Food Services of Canada (TSX:AW) has a current Interest Coverage of 1.54. The current Interest Coverage is 1.54, which is near median its 10-year median of 1.42 and 76.2% below the Restaurants industry median of 6.46. A&W Food Services of Canada's overall GF Score™ is 16/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For A&W Food Services of Canada (TSX:AW), the current Interest Coverage is 1.54 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
A&W Food Services of Canada Inc is in the business of developing and franchising quick service restaurants in Canada and owns the A&W trademarks used in the A&W quick service restaurant business in Canada. The Company also has one geographic segment as all assets and operations are in Canada.
16GF Score
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