SIR restaurant income fund lowers distributions 16.7 per cent due to lower sales

SIR restaurant income fund lowers distributions 16.7 per cent due to lower sales
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BURLINGTON, Ont. — SIR Royalty Income Fund says a change in consumer behaviour has reduced food and beverage sales at its full-service restaurants, resulting in a decision to lower its monthly cash distributions to investors by 16.7 per cent.

The trust’s income is generated from a number of restaurant brands, including 38 locations of Jack Astor’s Bar and Grill.

Its distributions will drop to 8.75 cents per unit in November, down 1.75 cents from 10.5 cents per unit.

SIR says same-store sales for its fourth quarter which ended Aug. 25 were down 5.9 per cent and didn’t improved during the first four weeks of the first quarter of its 2020 financial year.

The fund says management believes the full-service restaurant industry in Ontario is being affected by higher menu pricing, following an increase in the minimum wage, as well as competition from meal delivery services.

Most of SIR’s restaurants are in Ontario operating under brands including Scaddabush Italian Kitchen & Bar, Canyon Creek, Reds and the Loose Moose.

This report by The Canadian Press was first published Oct. 16, 2019.

Companies in this story: (TSX:SRV.UN)

The Canadian Press

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