A&W Food Services of CanadaTSX:AW +0.08%16 ROA % is 3.08% as of Mar. 2026, which is 16% above its 10-year median of 2.66. GuruFocus rates TSX:AW with a GF Score™ of 16/100. The stock has 6 warning signs investors should review. Among 364 Restaurants companies, A&W Food Services of Canada ranks better than 66.21% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. A&W Food Services of Canada's annualizedNet Income for the quarter that ended in Mar. 2026 was C$38.1 Mil.
A&W Food Services of Canada's average Total Assets over the quarter that ended in Mar. 2026 was C$1,236.3 Mil. Therefore, A&W Food Services of Canada's annualized ROA % for the quarter that ended in Mar. 2026 was 3.08%.
The historical rank and industry rank for A&W Food Services of Canada's ROA % or its related term are showing as below:
TSX:AW'
s ROA % Range Over the Past 10 Years
Min: 1.09 Med: 2.66 Max: 4.56
Current: 4.56
During the past 4 years, A&W Food Services of Canada's highest ROA % was 4.56%. The lowest was 1.09%. And the median was 2.66%.
TSX:AW's ROA % is ranked better than 66.21% of 364
companies
in the Restaurants industry
Industry Median: 2.235
vs TSX:AW: 4.56
A&W Food Services of Canada (TSX:AW) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Restaurants subindustry, A&W Food Services of Canada's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, A&W Food Services of Canada's ROA % distribution charts can be found below:
* The bar in red indicates where A&W Food Services of Canada's ROA % falls into.
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
A&W Food Services of Canada (TSX:AW) has a ROA % of 3.08% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on A&W Food Services of Canada and its competitors. This is 16% above median its historical median of 2.66. Over the past decade, A&W Food Services of Canada's ROA % has ranged from 1.09 to 4.56. According to the industry distribution chart, A&W Food Services of Canada ranks #123 out of 364 companies in the Restaurants industry, placing it in the top 33.8%.
Is A&W Food Services of Canada's ROA % too high?
A&W Food Services of Canada's current ROA % of 3.08% is 16% above median its 10-year median of 2.66. Over the past 10 years, this metric has ranged from a low of 1.09 to a high of 4.56. The Restaurants industry median ROA % is 2.24. A&W Food Services of Canada's value of 3.08% is 37.8% above this industry median. Based on the distribution chart, A&W Food Services of Canada ranks #123 out of 364 companies in the Restaurants industry, which is above the industry midpoint. 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 ROA % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, A&W Food Services of Canada ranks #123 out of 364 companies for ROA %. This puts A&W Food Services of Canada in the upper half of its industry. The industry median ROA % is 2.24. A&W Food Services of Canada's value of 3.08% is 37.8% above this benchmark. Historically, A&W Food Services of Canada's own ROA % has ranged from 1.09 to 4.56 over the past decade. While the company's 10-year median is 2.66 vs. the industry median of 2.24, A&W Food Services of Canada has consistently been above 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 ROA % for a Restaurants company?
The median ROA % among Restaurants companies is 2.24, based on 364 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % 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 ROA % of 3.08% is 37.8% above 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on A&W Food Services of Canada and its competitors. For the Restaurants industry, the median ROA % is 2.24 — 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 ROA % is 3.08%, which is 16% above median its own 10-year median of 2.66. 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 ROA % of 3.08%. The current ROA % is 3.08%, which is 16% above median its 10-year median of 2.66 and 37.8% above the Restaurants industry median of 2.24. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For A&W Food Services of Canada (TSX:AW), the current ROA % is 3.08% 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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