Keg Royalties sees stronger Q2 sales at its steak restaurants

VANCOUVER – The Keg Royalties Income Fund (TSX:KEG.UN) says that the restaurants in its group had a 9.6 per cent increase in sales for the second quarter, reflecting a combination of higher same-store sales and one additional location.

The fund’s royalty income for the three months ended June 30 was $5.04 million, up from $4.7 million a year earlier.

The royalties are based on a percentage of sales at Keg steak restaurants in Canada and the United States.

In the latest quarter, there were 103 restaurants in the royalty pool representing $125.4 million of sales, up $10.97 million from a year earlier when there were 102 locations in the pool.

Distributions paid to holders of the fund’s units were unchanged at $2.725 million or 24 cents per unit, or about 98.9 per cent of the cash available for distribution.

Keg Royalty units closed Monday at $16.24 on the Toronto Stock Exchange.