SIR Royalty Income Fund Announces Filing of SIR Corp. Fiscal 2025 Third Quarter Results

BURLINGTON, ON, June 17, 2025 /CNW/ - SIR Royalty Income Fund (TSX:SRV) (the "Fund") today announced that SIR Corp. ("SIR" or the "Company"), the operating entity from which the Fund's equity income is ultimately derived, has filed its financial results for the 12-week and 36-week periods ended May 4, 2025 ("Q3 2025" and "YTD 2025", respectively). SIR's unaudited interim consolidated financial statements and management's discussion & analysis ("MD&A") for Q3 2025 / YTD 2025 can be accessed via the Fund's profile on the SEDAR+ website at www.sedarplus.ca under "Other", or the SIR website at www.sircorp.com/sir-royalty-income-fund/financial-reports.

Q3 2025 Business Update

Food and beverage revenue from corporate restaurant operations increased by 4.5% to $64.8 million, compared to $62.0 million for the 12-week period ended May 5, 2024 ("Q3 2024").

Consolidated Same Store Sales ("SSS")(1) declined by 1.4%.

On April 27, 2025, SIR permanently closed the Jack Astor's® restaurant located in the Greenfield Park neighbourhood of Longueuil, Quebec. This restaurant will cease to be a Royalty Pooled Restaurant effective January 1, 2026.

Subsequent Event

On May 15, 2025, SIR entered into a new credit agreement ("New Credit Agreement") with a syndicate of two Schedule 1 Canadian chartered banks (the "Lenders") to refinance the previous credit facility. The New Credit Agreement provides for a three-year facility for a maximum principal amount of $68.0 million consisting of: i) a $5.0 million revolving term credit facility, ii) a $38.0 million revolving term loan and iii) a $25.0 million non-revolving term loan. The Company and the Lenders have also entered into a purchase card agreement providing credit of up to an additional $1.5 million. The revolving term loan was fully drawn at closing and was used to extinguish SIR's existing senior debt.

Results of Operations Summary

SIR has advised the Fund that food and beverage revenue from corporate restaurant operations totaled $64.8 million in Q3 2025, an increase of 4.5% compared to $62.0 million in Q3 2024. The increase reflects the impact of the five new restaurants opened during and subsequent to Q3 2024 (three new Scaddabush Italian Kitchen & Bar® ("Scaddabush") locations, a Duke's Refresher® + Bar and Edna + VitaTM) and higher SSS(1) at Scaddabush, partially offset by lower SSS(1) at Jack Astor's and the Signature restaurants and the permanent closures of the Jack Astor's locations in North York, Ontario (on September 4, 2024) and Longueuil, Quebec (on April 27, 2025).

 

Same Store Sales(1)  

($000s) 

12-Week

Period Ended

May 4, 2025

12-week

Period Ended

May 5, 2024

Variance

36-Week

Period Ended

May 4, 2025

36-Week

Period Ended

May 5, 2024

Variance

Jack Astor's

39,359

40,335

(2.4 %)

113,857

117,575

(3.2 %)

Scaddabush

13,697

13,243

3.4 %

40,382

38,716

4.3 %

Signature Restaurants

4,163

4,471

(6.9 %)

11,771

12,088

(2.6 %)

 

Same Store Sales(1)    

57,219

58,049

(1.4 %)

166,010

168,379

(1.4 %)

SSS(1) performance includes all SIR restaurants, except for those restaurants that were not open for the entire comparable periods in Fiscal 2025 and Fiscal 2024.  Accordingly, SSS(1) performance for Q3 2025 does not include the new Scaddabush restaurants in Whitby, Guelph and London, Ontario and in the Don Mills neighbourhood of Toronto, since these were not open for both comparable periods in Fiscal 2025 and Fiscal 2024. The new Signature Restaurants, Edna + Vita and Duke's ...