Hungry for yield? Be careful with restaurant royalty stocks

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 92%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Hungry for yield? Be careful with restaurant royalty stocks GlobeInvestor

Boston Pizza cited these and other factors recently when it posted a 4.2-per-cent drop in third-quarter sales at restaurants open for at least 24 months. The results sent the stock to a one-day decline of more than 10 per cent and prompted Acumen Capital Partners analyst Nick Corcoran to downgrade the units to a “hold” from “speculative buy” while slashing his price target to $16 from $19. The units closed Friday at $14.32.Mr.

SIR said its business has been hurt by the rise of food-delivery apps, which are causing more consumers to eat at home. Even if a customer orders a meal from Jack Astor’s for delivery, the restaurant still loses out on beverage sales that can be a significant source of revenue for full-service establishments.

If you’re considering restaurant royalty funds, it’s important to understand how they work. Royalty funds don’t operate the restaurants but own the trademarks, which they license to the operating company in exchange for a royalty based on a percentage – usually 4 per cent to 9 per cent – of sales by stores in the “royalty pool.”The stream of royalties, in turn, funds the monthly cash distributions to unitholders.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Energy stocks help lift Toronto stock index, materials and finance slipCanada's main stock index was up slightly in late-morning trading as energy and cannabis stocks rose while financial and materials stocks dipped.
Source: CTVNews - 🏆 1. / 99 Read more »