April 20th 2009
Vancouver, British Columbia -- April 20, 2009 -- The Keg Royalties Income Fund (TSX:KEG.UN) (the "Fund") and Keg Restaurants Ltd. ("KRL") today announced sales results for the 13-week period ended March 29, 2009.
Total system sales for KRL for the 13 weeks ended March 29, 2009 were $122.7 million compared to $111.6 million for the 13 weeks ended March 30, 2008, an increase of $11.1 million or 9.9%. Royalty Pool sales for the Fund for the quarter increased 8.3% to $120.9 million compared to $111.5 million for the same quarter of the prior year. These increased sales reflect the very successful new Keg restaurants which were added to the Royalty Pool on January 1, 2009, as well as same store sales growth.
The Keg's same store sales (sales of restaurants that operated during the entire period of both the current and prior years) decreased by 1.5% in Canada and by 4.9% in the United States for the 13-week period ended March 29, 2009. After translating the sales of the U.S. restaurants into their Canadian dollar equivalent, consolidated same store sales increased by 0.7% for the 13-week period. The average exchange rate moved from 1.00 in the first quarter of 2008 to 1.24 in the first quarter of 2009 significantly increasing the Canadian dollar equivalent of the U.S. restaurant sales.
"We are extremely pleased with our overall sales growth, particularly given the current economic environment," said David Aisenstat, President and CEO of Keg Restaurants Ltd. "While our same store sales growth is below our historical levels, we have nevertheless outperformed the majority of our competitors, both in Canada and the United States. Our new Keg locations, which we continue to open, have been very well received by our guests. The Keg's sales performance continues to provide the Fund's unitholders with consistent distributions, month after month."
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. Keg Restaurants Ltd. continues to operate The Keg restaurant system and expand that system through the addition of both corporate and franchised Keg steakhouses. The Keg has been named one of the "50 Best Employers in Canada" for the past seven years by the Globe and Mail's Report on Business Magazine. For information on our brand, visit www.kegsteakhouse.com.
This press release may contain or refer to certain "forward looking" statements reflecting the Fund's business, operations and financial condition. These forward looking statements are based on assumptions that management of the Fund believe to be reasonable. However, investors are cautioned that all forward looking statements involve risks and uncertainties that could cause actual results to differ from those expected or projected, including changes in the foodservice market, competitive developments, potential downturns in economic conditions generally and currency fluctuations. The foregoing list is not exhaustive and 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. The Fund undertakes no obligation to update or revise any forward looking statements.
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 more information, please contact
The Keg Royalties Income Fund
Investor Relations Manager