A&w Food Services Of Canada, Inc. · TSX:AW
A&w Food Services Of Canada — Q3 2025 Earnings Presentation
32 slides from A&w Food Services Of Canada's earnings presentation, Oct 17, 2025
Slide 1: A&W Food Services of Canada Inc. Investor Presentation
A&W Food Services of Canada Inc. Investor Presentation October 2025
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS Forward-Looking Information Certain statements in this presentation contain forward-looking information within the meaning of applicable securities laws in Canada. The words “anticipates”, “believes”, “budgets”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “may”, “m
Slide 3: Cautionary Statements (Cont'd) - Non-IFRS Measures
CAUTIONARY STATEMENTS (CONT’D) Non-IFRS Measures This presentation makes references to certain non-IFRS measures. These measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Foo
Slide 4: Presentation Overview
Presentation Overview • A&W Food Services of Canada Inc. | Overview • Business Highlights • 2025 Outlook • Strategy and Climate
Slide 5: Our Story
Our journey began in 1956 with the opening of our first restaurant in Winnipeg. Since then, our delicious burgers, crispy onion rings, and frosty A&W Root Beer have won over the hearts and taste buds of Canadians everywhere. Our Story Today, A&W Food Services of Canada is not just the original burge
Slide 6: Delighting Guests from Coast-to-Coast
Delighting Guests from Coast-to-Coast 1,084 Restaurants Across Canada and Growing(1) Flexible Restaurant Concepts(1) >99% 609 196 Franchised Freestanding Convenience Restaurants 1 18 191 165 114 208 42 46 3 Shopping Urban & 334 192 Centre Other 21 28 First Standalone PRET Located in Second Lease Sig
Slide 7: 20 Year Track Record of Growth
20 Year Track Record of Growth (2) A&W System Sales ($bn) A&W Annual System Sales Growth (2) $1.85 $1.87 $1.91 (1) $1.78 Canadian QSR Industry Growth (1) $1.54 $1.61 241% Canadian Commercial Food Service Industry Growth $1.42 $1.38 $1.24 $1.16 $1.09 155% $0.99 $0.79 $0.82 $0.85 $0.89 $0.72 $0.76 119
Slide 8: Industry Leading Canadian Burger QSR
Industry Leading Canadian Burger QSR Net Restaurant Growth in Canada(1) #2 Burger Chain in Canada Annual Canadian Total Restaurants in +11 units added in YTD Q3 2025 System Sales Canada (Units) (4) ($bn)(2,3) ~3.1% Average +237 units Annual Net Restaurant Growth $7.31 1,489 2014–2024 ~2.5% Average A
Slide 9: Best-in-Class 10-Year System Sales Growth
Best-in-Class 10-Year System Sales Growth Driven by Both New Restaurant Growth and Same Store Sales Growth Average Annual Average Annual Same Store Sales Growth(2) System Sales Growth(1)(3) 7.8% 5.1% 4.6% 6.0% 4.3% 3.7% 2.7% 3.7% Note: Per public disclosure; average annual growth figures from 2015 t
Slide 10: A&W Is Loved and Trusted by Its Loyal Guests
A&W Is Loved and Trusted by Its Loyal Guests A Fortress Brand With a Long History of Guest Affinity Canada’s Strongest Brand(1) Rated #1 Across the Board 85.3 # 1 #1 Best Tasting Burger(2) #1 Onion Rings #1 Retail Root Beer 83.6 82.6 #1 Honesty and Trustworthiness(2) 82.1 80.6 #1 Best Quality Beef(2
Slide 11: History of Growth
History of Growth System Sales ($bn)(1) Revenue ($MM) $1.78 $1.85 $1.87 $1.91 $299 $299 $292 $295 $1.61 $1.42 $1.54 $1.38 $246 $245 $1.16 $1.24 $186 $206 $202 $133 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q3 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q3 2025 2025 (2) T4Q (2) T4Q Adjusted EBITD
Slide 12: Strong Franchise Network
Strong Franchise Network Strategic Focus on Restaurant Profitability Clear Visibility and Growth ~90% of Resale Strong Lending Objectives for Restaurant Restaurants Bought Appetite from the Level Gross Margins by Existing Franchisees(3) ‘Big 6’ Banks Average Annual System Sales per Restaurant ($MM/R
Slide 13: Scalable and Motivated Franchisee Base
Scalable and Motivated Franchisee Base Experienced and Successful Network with Demand for More A&W’s Average Number of Restaurants Owned by a 3.4 Franchisee, with a Strong Balance of Small, Medium and Large Franchisees and nice Geographical Dispersion(2) of New Restaurants Opened by Existing 75% Fra
Slide 14: A&W Operates in the Large and Growing Burger Segment of the Canadian QSR Market
A&W Operates in the Large and Growing Burger Segment of the Canadian QSR Market $43.4bn Canadian QSR Market Size(1) ~5.9% year over year growth(1) $13.1bn Canadian QSR Burger $1.91bn Market Size(1) A&W Q3 2025 T4Q ~3.1% year over year growth(1) System Sales(2) 1. Based on trailing 12 month data as o
Slide 15: A&W in 2024
A&W in 2024 Opened the first Pret A Manger location in (1) Canada Rolled out Opened Pret A Manager 28 Coffee in all A&W Restaurants nationwide Hit Critical Mass New A&W Restaurants with Brew Bars now in over 700 A&W +0.8% Locations System Sales Became a publicly-traded Growth(2) 1.8% company on the
Slide 16: YTD Highlights
YTD Highlights New & Return Value Offerings Menu Items YTD Same Dividends +2.9% Store Sales 1.8% Declared YTD System Growth(2) Sales Growth(1) +1.3% 1. “System Sales Growth” is a non-IFRS ratio. See “Cautionary Statements – Non-IFRS Measures”. 2. “Same Store Sales Growth” is a non-IFRS supplementary
Slide 17: Q3 Financial Highlights
Q3 Financial Highlights Q3 2025 Q3 2024 (in thousands of Canadian $) System Sales(1) $479,607 $465,104 System Sales Growth(2) +3.1% +0.4% Same Store Sales Growth(3) +1.4% -1.0% Total revenue $71,205 $76,001 Income before income taxes $23,611 $8,968 Adjusted EBITDA(1) $25,793 $24,677 Adjusted EBITDA
Slide 18: YTD 2025 Financial Highlights
YTD 2025 Financial Highlights YTD 2025 YTD 2024 (in thousands of Canadian $) System Sales(1) $1,328,822 $1,291,682 System Sales Growth(2) +2.9% +1.3% Same Store Sales Growth(3) +1.3% 0.0% Total revenue $201,115 $199,103 Income before income taxes $53,253 $28,989 Adjusted EBITDA(1) $70,714 $65,542 Ad
Slide 19: Financial Trends – Trailing 8 Quarters
Financial Trends – Trailing 8 Quarters (1) Due to seasonality, the results of operations for any quarter are not necessarily indicative of the System Sales ($m) results of operations for the fiscal year. Total Revenue fluctuates quarter to quarter and does Total Revenue ($m) not necessarily correlat
Slide 20: Sales Performance – Trailing 8 Quarters
Sales Performance – Trailing 8 Quarters 4% 3.4% 3.4% 3.1% 3% 2.1% 2.0% 2.0% 2% 1.6% 1.6% 1.4% 1% 0.6% 0.3% 0.4% 0.4% 0% -0.1% -1% -1.0% -2% -1.9% -3% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 (2) (1) Same Store Sales Growth System Sales Growth 1. “System Sales Growth” is a non-
Slide 21: Key Performance Indicators
Key Performance Indicators For the 3 most recently completed fiscal years Fiscal 2024 Fiscal 2023 Fiscal 2022 System Sales(1) ($m) $1,868,478 $1,853,119 $1,776,205 System Sales Growth(2) +0.8% +4.3% +10.4% Same Store Sales Growth(3) -0.6% +2.7% +7.4% Number of A&W restaurants 1,073 1,054 1,046 Net a
Slide 22: Strong & Steady Growth
Strong & Steady Growth $2,000 1,200 $1,800 1,100 $1,600 System Sales ($ million) 1,000 No. of Restaurants $1,400 900 $1,200 $1,000 800 $800 700 $600 600 $400 500 $200 $- 400 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 Q3 2025 T4Q (2) (1) System Sales Restaurant Count 1. “System Sales
Slide 23: 2025 Financial Outlook
2025 Financial Outlook (released May 2, 2025) (2025E)(4) Annual Same Store 0.0% – 3.0% Sales Growth %(3) Total Units 1,085 – 1,100 (A&W Restaurants) Annual System Sales Growth %(2) 1.5% – 4.5% Adjusted $96MM – $101MM EBITDA(1) 1. “Adjusted EBITDA” is a non-IFRS financial measure. See “Cautionary Sta
Slide 24: Significant Whitespace Opportunity
Significant Whitespace Opportunity Untapped New Restaurant Potential Provides Clear Path for Growth Strong Presence in ~400 Restaurant Whitespace Western Canada 1,073(1) 1,489(1) Δ 416 485 ~524(2) 39 326 187 71 ~523(2) ~332(2) ~106(2) ∆ Δ 197 Δ 145 Δ 35 1. Total includes Territories and represents 2
Slide 25: Growth Opportunities
Growth Opportunities Opening More A&Ws and Growing Average Sales Volumes New Restaurant Growth Same Store Sales Growth ✓ High appeal to Gen-Z and Millennials ✓ Robust pipeline of new A&W restaurants ✓ Expanded our value offerings through the in partnership largely with existing introduction of “Valu
Slide 26: Robust New Restaurant Pipeline Supported by Strategic Petro-Canada (Suncor) Partnership
Robust New Restaurant Pipeline Supported by Strategic Petro-Canada (Suncor) Partnership A&W x Petro-Canada (Suncor) Restaurants – A Long-Standing, Growing Partnership ✓ Signed initial development agreement in 1997 1997 ✓ Leading to 31 restaurants by the end of 2012 ✓ Suncor began converting Neighbou
Slide 27: Strategically Focused on Expanding Franchisee Profitability
Strategically Focused on Expanding Franchisee Profitability Recent Franchisee Profitability Initiatives Growth Target for All Franchisee Restaurants Optimizing Procurement and Distribution, and Securing Favorable Contracts via Scale +30% +5% Overhauling Operating Procedures Improvement in Achieved f
Slide 28: Strategically Focused on Enhancing the Franchisee Business Model
Strategically Focused on Enhancing the Franchisee Business Model • Improving franchisee profitability and expanding EBITDA; targeting 30% improvement between 2023 and 2028 • Targeting a $500K reduction on the cost of new freestanding restaurants through redesign, with the first one to be built in 20
Slide 29: Balanced Capital Allocation Priorities
Balanced Capital Allocation Priorities Capital Allocation Priorities Net Debt to Adjusted EBITDA Preserve Balance Sheet Strength Maintain a Prudent Capital Structure and Utilize Excess Cash to Reduce Leverage 2.4x(1) Maintain an Attractive Dividend Maximize Shareholder Returns by Annual Dividend Mai
Slide 30: Highly Experienced Management Team
Highly Experienced Management Team 20+ Years of A&W Experience on Average Culture of “Climate” Practiced across all of A&W developed 40+ years including franchisees’ ago to enable the business 26,000+ team members to be highly successful across Canada Susan Senecal, President & CEO Kelly Blankstein,
Slide 31: Create "can't wait to come back" appeal and guest experience
Create “can’t wait to come back” appeal and guest experience Make A&W restaurants even more successful AOW.,
Slide 32: Celebrate
Celebrate @ Every day! Listen to to my work and my team. understand © | build a safe environment by I everyone in our community. Feedback so ¥ 9) Embrace @ We hus ght each guest accepting & change with the convenience they crave. specting ® We earn the trust of our guests and each other by always To
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