A&W Revenue Royalties Income Fund announces 2008 third quarter results



    
    6.5% same store sales growth leads to distributable cash increase of
    11.1% and announcement of Special Distribution

    Highlights
    ----------
    -   Same store sales growth 6.5% for the third quarter; 7.4% year to date
    -   Royalty income increased to $5.3 million, up 10.4%
    -   Distributable cash(1) increased to $5.1 million, up 11.1%
    -   Year to date distributable cash increased to $13.6 million, up 11.1%
    -   Trustees announce second special distribution of $0.10 per unit,
        payable November 30th

    -------------------------------------------------------------------------
    Sales Highlights                   Q3 2008   Q3 2007  2008 YTD  2007 YTD
    -------------------------------------------------------------------------
    Same store sales growth               6.5%      3.3%      7.4%      4.1%
    Sales reported by the restaurants
     in the Royalty Pool              $175,256  $158,673  $477,447  $432,286
    Number of restaurants in
     the Royalty Pool                      676       660       676       660
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Financial Highlights               Q3 2008   Q3 2007  2008 YTD  2007 YTD
    -------------------------------------------------------------------------
    Royalty income                      $5,257    $4,761   $14,323   $12,969
    General and administrative expenses    $34       $60      $325      $364
    Net third party interest expense      $111      $102      $329      $323
    Trade Marks' net earnings           $1,064      $734    $1,892    $1,010
    The Fund's net earnings             $2,694    $2,520    $7,888    $6,818
    The Fund's basic and diluted
     earnings per unit
     (8,340,000 units)                  $0.323    $0.302    $0.946    $0.818
    Total distributable cash generated
     for distributions and dividends(1) $5,111    $4,599   $13,643   $12,282
    Distributable cash(1) per
     equivalent unit (2008 -
     13,924,371 units; 2007 -
     13,473,911 units)                  $0.367    $0.341    $0.980    $0.912
    Distributions and dividends
     declared per equivalent unit,
     including special distribution
     (2008 - $0.100, 2007 - $0.080)     $0.318    $0.306    $0.948    $0.886
    -------------------------------------------------------------------------
    ($ in thousands except per unit amounts.)
    (1) Distributable cash is not an earnings measure recognized by generally
        accepted accounting principles ("GAAP") and therefore may not be
        comparable to similar measures presented by other issuers. This
        information is provided as it identifies the amount of actual cash
        available to pay distributions to unitholders and dividends to Food
        Services

    TRADING SYMBOL: The Toronto Stock Exchange - AW.UN
    

    VANCOUVER, Oct. 14 /CNW/ - A&W Revenue Royalties Income Fund (the Fund)
reported today strong results for the third quarter ended September 7, 2008.
    Same store sales growth in A&W restaurants is the most important driver
of growth in the Fund. Same store sales growth for the quarter was 6.5%. This
marks A&W's 22nd consecutive quarter of same store sales growth. Sales
reported by restaurants in the Royalty Pool increased 10.4% to $175.3 million
compared to $158.7 million in the same quarter of 2007.
    Year to date same store sales growth is now 7.4% and year to date sales
reported by A&W restaurants in the Royalty Pool increased 10.4% to
$477.4 million compared to $432.3 million in 2007 year to date.
    "The strength of our strategy focusing on the baby boomer customer
resulted in strong sales in an uncertain economic environment. We are very
pleased with the same store sales growth of 6.5%," said Paul Hollands,
President and Chief Executive Officer of A&W Food Services of Canada Inc. "Our
most recent advertising campaigns were well received and our Cruisin' the Dub
program was extremely successful this summer. Building on the success of the
limited time offer of the Sirloin Burger in the first quarter, we are
delighted to launch this product permanently on our menu, branded as the Uncle
Burger."

    Financial Results

    Royalty income for the quarter increased by $496,000 or 10.4% to
$5,257,000 compared to the same quarter in 2007. Year to date royalty income
increased by $1,354,000 or 10.4% to $14,323,000 compared to 2007 year to date.
These increases in royalty income were driven by the strong same store sales
growth and the increase in the number of restaurants in the Royalty Pool to
676 in 2008 from 660 in 2007.
    As a result of the increase in royalty income, distributable cash
available to pay distributions to unitholders and dividends to A&W Food
Services of Canada Inc. (Food Services) increased by 11.1% to $5,111,000 for
the quarter and by 11.1% to $13,643,000 year to date.
    Distributable cash per fully diluted unit and equivalents increased to
36.7 cents for the third quarter in 2008 from 34.1 cents for the third quarter
of 2007. Year to date distributable cash per fully diluted unit increased to
98.0 cents from 91.2 cents for the prior year to date.
    Monthly distributions totalling 31.8 cents per unit were declared in the
quarter and 84.8 cents year to date. The current monthly distribution rate of
10.6 cents per unit translates into an annualized distribution of $1.272 per
unit. In addition, a Special Distribution of 10 cents per unit was paid in
February 2008. Food Services earned dividends on its investment in Trade Marks
at the same rate.

    Trustees Approve Special Distribution of 10 cents per Unit

    The Trustees of the Fund have announced that they have approved the
payment of a Special Distribution of 10 cents per unit, payable on
November 30, 2008 to unitholders of record as at November 15, 2008.

    A&W to Host Conference Call at 1:00 p.m. PST on October 14, 2008

    A&W Revenue Royalties Income Fund will hold a conference call to discuss
third quarter results on Tuesday, October 14, 2008 at 1:00 p.m. Pacific Time
(4:00 p.m. Eastern Time). The call can be accessed by dialling toll-free
1-800-732-9303 or (416) 644-3417. A replay will be available until October 28,
2008, by dialling toll-free 1-877-289-8525 or (416) 640-1917 Passcode:
21285892 followed by the number sign.

    The Fund Overview

    The Fund is a limited purpose trust established to invest in Trade Marks,
which owns the A&W trade-marks used in the A&W quick service restaurant
business in Canada. The A&W trade-marks comprise some of the best-known brand
names in the Canadian foodservice industry. In return for licensing Food
Services to use its trade-marks, Trade Marks receives royalties equal to 3% of
the sales of A&W restaurants in the Royalty Pool. A&W is the second largest
quick-service hamburger restaurant chain in Canada. Operating coast-to-coast,
A&W restaurants feature famous trade-marked menu items such as The Burger
Family, Chubby Chicken and A&W Root Beer.
    The Royalty Pool is adjusted in January of each year (except in 2006 when
the Royalty Pool was adjusted on January 5, 2006 and December 31, 2006, and
2007 in which there was no adjustment) to include the royalty stream from new
restaurants, net of the sales of any A&W restaurants that have permanently
closed. Trade Marks pays Food Services for the additional royalty stream in
the form of common shares and Class B shares of Trade Marks which are the
economic equivalent of units of the Fund. Food Services currently owns 40% of
the common shares of Trade Marks, and therefore owns the equivalent of 40% of
the units of the Fund on a fully-diluted basis.
    Trade Marks' dividends to Food Services and the Fund, and the Fund's
distributions to unitholders are based on top-line revenues of the A&W
restaurants in the Royalty Pool, less interest, general and administrative
expenses and current income taxes of Trade Marks, and are thereby isolated
from many of the factors that impact an operating business.

    Food Services

    On October 14, 2008, Food Services declared a dividend on its common
shares of $3,000,000, payable to its shareholders on October 16, 2008.

    Certain statements in this report may be forward-looking in nature. These
include references to liquidity, subordinated dividends, earnings and
anticipated earnings from growth in same store sales and new restaurant
openings. Actual results may differ materially from those expressed or implied
in these forward-looking statements. The forward-looking statements are based
on assumptions that management considered reasonable at the time they were
prepared. These forward-looking statements are subject to a number of risk
factors, including the ability of A&W Food Services of Canada Inc. to
implement its marketing strategies, the opening of new A&W restaurants,
general economic and business conditions, financial and political instability,
and other factors disclosed previously and from time to time in the Fund's
public filings.
    Additional information relating to the Fund is on SEDAR at www.sedar.com
and on the Fund's website at www.awincomefund.ca.





For further information:

For further information: Don Leslie, Chief Financial Officer: (604)
988-2141 or investorrelations@aw.ca


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