A&W Food Services of CanadaTSX:AW -1.36%16 ROE % is 17.28% as of Mar. 2026, which is 32% below its 10-year median of 25.51. GuruFocus rates TSX:AW with a GF Score™ of 16/100. The stock has 6 warning signs investors should review. Among 344 Restaurants companies, A&W Food Services of Canada ranks better than 85.47% on this metric.
The historical rank and industry rank for A&W Food Services of Canada's ROE % or its related term are showing as below:
TSX:AW'
s ROE % Range Over the Past 10 Years
Min: 25.51 Med: 25.51 Max: 27.17
Current: 27.17
During the past 4 years, A&W Food Services of Canada's highest ROE % was 27.17%. The lowest was 25.51%. And the median was 25.51%.
TSX:AW's ROE % is ranked better than 85.47% of 344
companies
in the Restaurants industry
Industry Median: 6.45
vs TSX:AW: 27.17
A&W Food Services of Canada (TSX:AW) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, A&W Food Services of Canada's ROE % distribution charts can be found below:
* The bar in red indicates where A&W Food Services of Canada's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
A&W Food Services of Canada (TSX:AW) has a ROE % of 17.28% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on A&W Food Services of Canada and its competitors. This is 32% below median its historical median of 25.51. Over the past decade, A&W Food Services of Canada's ROE % has ranged from 25.51 to 27.17. According to the industry distribution chart, A&W Food Services of Canada ranks #50 out of 344 companies in the Restaurants industry, placing it in the top 14.5%.
Is A&W Food Services of Canada's ROE % too high?
A&W Food Services of Canada's current ROE % of 17.28% is 32% below median its 10-year median of 25.51. Over the past 10 years, this metric has ranged from a low of 25.51 to a high of 27.17. The Restaurants industry median ROE % is 6.45. A&W Food Services of Canada's value of 17.28% is 167.9% above this industry median. Based on the distribution chart, A&W Food Services of Canada ranks #50 out of 344 companies in the Restaurants industry, which is in the top quartile — a strong position 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 ROE % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, A&W Food Services of Canada ranks #50 out of 344 companies for ROE %. This places A&W Food Services of Canada in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 6.45. A&W Food Services of Canada's value of 17.28% is 167.9% above this benchmark. Historically, A&W Food Services of Canada's own ROE % has ranged from 25.51 to 27.17 over the past decade. While the company's 10-year median is 25.51 vs. the industry median of 6.45, 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 ROE % for a Restaurants company?
The median ROE % among Restaurants companies is 6.45, based on 344 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % 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 ROE % of 17.28% is 167.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on A&W Food Services of Canada and its competitors. For the Restaurants industry, the median ROE % is 6.45 — 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 ROE % is 17.28%, which is 32% below median its own 10-year median of 25.51. 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 ROE % of 17.28%. The current ROE % is 17.28%, which is 32% below median its 10-year median of 25.51 and 167.9% above the Restaurants industry median of 6.45. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For A&W Food Services of Canada (TSX:AW), the current ROE % is 17.28% 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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