Not for distribution to U.S. News wire services or dissemination in the U.S.
Vancouver, January 21, 2005 - The Keg Royalties Income Fund (the “Fund”) and Keg Restaurants Ltd. today announced sales results for the 13-week and 52-week periods ended January 2, 2005.
Total system sales of Keg Restaurants Ltd. for the 13 weeks ended January 2, 2005 were $84.3 million compared to $84.6 million for the 14 weeks ended January 4, 2004. The same quarter of 2004 included 14 weeks, versus 13 weeks for the same period for 2005. System sales due to the extra week of operations in the prior year were $5.5 million, so on a comparable basis total system sales increased by $5.2 million or 6.6%. Total system sales for the comparable 52-week period increased from $297.8 million to $321.8 million, an increase of $24.0 million or 8.1%.
The Keg’s same store sales in its core Canadian market increased by 2.8% and The Keg’s U.S. restaurants experienced sales growth of 6.4% for the comparable 13-week period. Same store sales grew by 2.9% in Canada and by 1.9% in the United States for the comparable 52-week period. After translating the sales of the U.S. restaurants into their Canadian dollar equivalent, consolidated same store sales grew by 1.7% for the comparable 13-week period and by 1.1% for the comparable 52-week period.
“We are very pleased with our continued strong sales increases,” said David Aisenstat, Keg President & CEO. “The results reflect both the loyalty of our guests in existing Kegs and the success of our growth strategy as we add new locations.”
Vancouver-based Keg Restaurants Ltd. is the leading operator and franchisor of steakhouse restaurants in Canada and has a substantial presence in select regional markets in the United States. KRL continues to operate The Keg restaurant system and expand that system through the addition of both corporate and franchised Keg steakhouses. Keg Restaurants Ltd. was named Restaurant Company of the Year by Foodservice and Hospitality Magazine in 2003, and for the past three years was named one of the “50 Best Employers in Canada” by the Globe and Mail's Report on Business Magazine.
This press release may contain certain "forward looking" statements reflecting The Keg Royalties Income Fund's current expectations in the casual dining segment of the restaurant food industry. Investors are cautioned that all forward looking statements involve risks and uncertainties, including changes in market and competition, competitive developments, and potential downturns in economic conditions generally. Additional information on these and other potential factors that could affect the Fund's financial results are detailed in documents filed from time to time with the provincial securities commissions in Canada.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of the prospectus, nor shall there be any sale of the Fund units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state, province or jurisdiction. The Keg Royalties Income Fund units have not been, and will not be registered under the U.S. Securities Act of 1933, as amended and my not be offered or sold in the United Sates absent registration or an application for exemption from the registration requirement under U.S. securities laws.
For further information: Karyn Byrne, Investor Relations Manager, Tel: (416) 646-4960, email@example.com