The Keg Royalties Income Fund (the “Fund”) is a limited purpose, open-ended trust which owns The Keg trademarks and other related intellectual property (collectively, the “Keg Rights”) from Keg Restaurants Ltd. (“KRL”). The Partnership, in turn, granted KRL an exclusive licence to use the Keg Rights for a term of 99 years pursuant to a licence and royalty agreement, which obligates KRL to make monthly royalty payments to the Partnership equal to 4% of gross sales of Keg restaurants included in a specific royalty pool (the “Royalty Pool”).
The key feature of the Fund is that royalty income is based on the top-line, gross sales of Keg restaurants in the Royalty Pool and not on the profitability of either KRL or the Keg restaurants in the Royalty Pool. Moreover, the Fund is not subject to the variability of income or expenses associated with an operating business. The Fund’s only expenses are nominal administrative expenses and interest on non-amortizing term debt. Thus, the success of the Fund depends primarily on the ability of KRL to maintain and increase the gross sales of the Keg restaurants in the Royalty Pool.
The Keg Stock Details
- Ticker: tse:keg.un
- Sector: Consumer Cyclical
- Industry: Restaurants
- Market Cap: 0.16B
- Market Cap Group: Micro Cap
- P/E: 18.51
- Dividend Yield: 7.86%
KEG.UN Industry Competitors
The competitive landscape is important as they compete for the same business. Below is the list of competitors in the same industry. While not displayed, a number of metrics you can also use to evaluate your picks are the Chowder Score, the Relative Strength Index (RSI), the Graham Number, and the Piotroski F-Score.
|YUM||NYSE:YUM||Yum! Brands, Inc.||35.46||25.55||1.91||NO||1||3||87|
|QSR||TSE:QSR||Restaurant Brands International||29.48||20.67||3.25||YES||1||3||87|
|QSP.UN||TSE:QSP.UN||Restaurant Brands International Limited Partnership||12.83||0.00||3.30||NO||1||3||87|
|MTY||TSE:MTY||MTY Food Group||1.57||20.14||1.55||NO||1||3||87|
|AW.UN||TSE:AW.UN||A&W Revenue Royalties||0.52||16.38||5.81||NO||1||3||87|
|BPF.UN||TSE:BPF.UN||Boston Pizza Royalties||0.33||11.02||8.17||NO||1||3||87|
|KEG.UN||TSE:KEG.UN||The KEG Royalties Income||0.16||18.51||7.86||NO||1||3||87|
|SRV.UN||TSE:SRV.UN||SIR Royalty Income||0.14||8.87||6.91||NO||1||3||87|
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The KEG Royalties Income - FAQ
What is the stock ticker for The KEG Royalties Income?
The stock ticker for The KEG Royalties Income is TSE:keg.un.
Is The KEG Royalties Income a good stock to buy?
You need to consider your investment strategy and how TSE:keg.un can fit in your portfolio.
The current dividend income score of 6/10 and dividend growth score of 2/10. Those 2 metrics together should help you decide the fit for your portfolio. Be it for income or for growth.
Is The KEG Royalties Income a Buy, Sell or Hold?
The Dividend Snapshot Opportunity Score of 43 out of 100.
The score reflects the strength of a buy signal but it does not show a sell signal if it's low. The higher the better.
A sell signal is more difficult as it often relies on the reason you bought the stock in the first place.