VANCOUVER – Steak house chain operator The Keg Royalties Income Fund (TSX:KEG.UN) credits successful new locations as well as higher same store sales for driving a 4.5 per cent increase in system-wide revenue in the fourth quarter.
The Keg and Keg Restaurant Ltd., which did not disclose earnings figures in a release issued Tuesday, said system sales totalled $ 124.6 million in the 13-week period ended Jan. 1, an increase of $ 5.4 million from $ 119.2 million in the same prior-year period.
Royalty Pool sales increased by 6.9 per cent to $ 122.1 million for the quarter, and by 4.3 per cent to $ 472.3 million for the year.
“These increased sales reflect the very successful new Keg restaurants which were added to the Royalty Pool on Jan. 1, 2011, and strong same store sales growth of five per cent for the quarter and 3.5 per cent for the year,” it said.
For the 52-week period ended Jan. 1, The Keg’s total system sales were $ 480.7 million compared with $ 468.5 million for the 52-week period ended January 2, 2011, an increase of $ 12.1 million or 2.6 per cent.
“The Keg has marked yet another consecutive quarter of strong same store sales growth,” said David Assent, President and CEO of Keg Restaurants Ltd.
“We believe these results speak to the continuing strength of The Keg brand.”
Vancouver-based KRL is a leading operator and franchisor of steak house restaurants in Canada and has a strong presence in select regional markets in the United States.
Local news from metronews.ca/vancouver
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