Keg Royalties Income Fund (TSX:KEG.UN) is the Subject of a StockPotentials Report by eResearch Corp - Video Summary of Report Posted on www.investmentpitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, May 9, 2012 - Toronto based eResearch has issued a
StockPotentials report on Keg Royalties Income Fund (TSX:KEG.UN). StockPotential
reports cover smaller companies that have little or no following on the Street,
that eResearch believes would be primarily of interest to retail investors.
InvestmentPitch.com has produced a "video news alert" based on this report. If
this link is not enabled, please visit www.investmentpitch.com and enter "Keg"
in the search box.
Keg Royalties is a limited purpose, open-ended trust which indirectly owns THE
KEG trademarks and other intellectual property related to operating Keg
Restaurants. Keg Royalties has licensed Keg Restaurants these rights for a
period of 99 years from May 31, 2002.
The Fund receives its income from two sources: an interest of 7.5% per annum on
a $57 million loan to Keg Restaurants, which is paid monthly to the Fund; and a
royalty of 4% on gross sales of Keg Restaurants in the Royalty Pool. This total
income, less some relatively minor administrative costs, is then distributed to
the unitholders of the fund.
The Keg Restaurants chain consists of 102 restaurants, 86 in Canada and 16 in
the United States. The company owns and operates 33 of the Canadian restaurants
and all 16 of the U.S. units. The remaining 53 Canadian restaurants are
independently owned and operated under franchise agreements.
The operating company, Keg Restaurants, is an industry leader in the full-
service restaurant category in Canada, with a recent study from Vision Critical,
formerly Angus Reid, rating it as the first choice of more than 67% of Canadian
diners when choosing a steak dinner.
Keg Restaurants operate in a growing industry which has experienced continuous
sales increases in Canada for the past 11 years and only one year-over-year
sales decline in the U.S. in the same period.
For 2011, system sales increased 2.6% to approximately $480.7 million,
reflecting a 2.0% increase in corporate restaurant sales and a 3.1% gain by
franchised units.
Keg Royalties Income Fund is trading at $14.90 and with approximately 11 million
units outstanding, is capitalized at $170 million.
eResearch believes "The Fund's units provide an attractive 6.4% yield, based on
the monthly distribution of $0.08 per unit."
eResearch cautions the fund could be affected by:
* competition from other restaurants
* possible changes in consumer dining tastes, and
* a significant weakening in overall economic conditions
For more information about Keg Royalties please visit their website at
www.kegincomefund.com or call Karyn Byrne at 416-646-4960 or email
info(at)kegincomefund.com.
For a copy of the report, contact eResearch at www.eresearch.ca. While on their
site, sign up for their free reports. eResearch does not receive a fee for the
preparation and publication of StockPotentials reports.
InvestmentPitch.com, a multimedia company that provides a combined solution for
creating and hosting financial video content, and distributing it across
multiple platforms to investors and financial professionals, specializes in
producing short three minute videos based on research reports and significant
news releases. For more information contact Barry Morgan at 604-684-5524 or
bmorgan(at)investmentpitch.com.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
bmorgan(at)investmentpitch.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: InvestmentPitch via Thomson Reuters ONE
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Unternehmensinformation / Kurzprofil:
Datum: 10.05.2012 - 01:07 Uhr
Sprache: Deutsch
News-ID 144814
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Kategorie:
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