Vancouver: January 11, 2006 - The Keg Royalties Income Fund (KEG.UN:TSX, the “Fund”) and Keg Restaurants Ltd. today announced sales results for the 13 and 52-week periods ended January 1, 2006.
Keg Restaurants Ltd.’s total system sales for the 13 weeks ended January 1, 2006 were $93.4 million compared to $84.3 million for the 13 weeks ended January 2, 2005, an increase of $9.1 million or 10.8%. For the 52-week period ended January 1, 2006, The Keg’s total system sales were $353.7 million compared to $321.8 million for the 52-week period ended January 2, 2005, an increase of $31.9 million or 9.9%.
The Keg’s same store sales in Canada increased by 6.5% and 3.4% for the comparable 13 and 52-week periods respectively, while same store sales increased by 7.6% and 9.2% for the comparable 13 and 52-week periods in the United States. Total consolidated same store sales increased by 5.9% for the 13-week period and by 3.1% for the 52-week period, in spite of the continuing negative effect of the exchange rate between the Canadian and U.S. dollars on the translation of the U.S. sales into their Canadian dollar equivalent.
“We are thrilled with the continued strong sales growth experienced throughout the company. This growth is particularly encouraging when compared to the more modest growth expected in the casual dining segment overall,” said David Aisenstat, Keg President & CEO. “These results confirm the effectiveness of new sales-building initiatives launched throughout 2005 in both Canada and the U.S. We are especially excited by the success these programs have demonstrated.”
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. has been named one of the “50 Best Employers in Canada” for the past four years 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 may not be offered or sold in the United States absent registration or an application for exemption from the registration requirement under U.S. securities laws.
The Trustees of the Fund have approved the contents of this press release.
For further information:
Karyn Byrne, Investor Relations Manager
Tel: (416) 646-4960, firstname.lastname@example.org