BURLINGTON, ON, Dec. 18, 2025 /CNW/ - SIR Royalty Income Fund (TSX: SRV.UN) (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 period ended November 23, 2025 ("Q1 2026"). SIR's unaudited interim consolidated financial statements and management's discussion & analysis ("MD&A") for Q1 2026 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.
Q1 2026 Business Update
-- Food and beverage revenue from corporate restaurant operations increased
by 10.3% to $64.7 million, compared to $58.7 million for the 12-week
period ended November 17, 2024 ("Q1 2025").
-- Consolidated Same Store Sales ("SSS")(1) increased by 8.3%.
-- On September 1, 2025, SIR temporarily closed the Jack Astor's$(R)$ location
in Barrie, Ontario for a period of 30 days for a major renovation and to
train personnel on a new service package, including new food and beverage
menus, before re-opening on October 1, 2025. This renovation also
included the unveiling of SIR's new concept, Freida's Beverage KitchenTM
("Freida's") at this location. SIR has revamped the menu so that every
dish is designed for sharing, making each meal at Jack Astor's and
Freida's an event to mix, match, and indulge together. SIR has developed
Freida's as a place where the art of cocktail creation is crafted and
celebrated through iconic categories of Margaritas, Classics, Dirty Sodas
and more. With the combination of Jack Astor's and Freida's, SIR is
defining a new era of social dining, with two distinct identities under
one roof.
-- On September 15, 2025, SIR closed the Duke's Refresher(R) + Bar ("Duke's
Refresher") location at the intersection of Queen Street East and
Broadview Avenue due to current economic conditions and the anticipated
impact of the current six-month closure of Queen Street East in downtown
Toronto due to construction activity.
Subsequent Event
-- On December 3, 2025, SIR opened a new Jack Astor's + Freida's location in
Oshawa, Ontario. This new location is expected to be added to the Royalty
Pooled Restaurants effective January 1, 2027.
Results of Operations Summary
SIR has advised the Fund that food and beverage revenue from corporate restaurant operations totaled $64.7 million in Q1 2026, an increase of 10.3% compared to $58.7 million in Q1 2025. The increase was primarily attributable to consolidated SSS(1) growth of 8.3% for the quarter and the opening of a new Scaddabush Italian Kitchen & Bar(R) ("Scaddabush") location in Barrie, Ontario during Q4 2025, partially offset by the permanent closures of the Jack Astor's locations in North York, Ontario (closed on September 4, 2024) and Longueuil, Quebec (closed on April 27, 2025), as well as the Duke's Refresher location at Queen Street East and Broadview Avenue in Toronto (closed on September 15, 2025).
Same Store Sales(1) 12-WeekPeriod 12-WeekPeriod Variance
($000s) EndedNovember 23, EndedNovember 17,
2025 2024
Jack Astor's 37,538 35,070 7.0 %
Scaddabush 19,291 18,020 7.1 %
Signature Restaurants 5,816 4,761 22.2 %
Same Store Sales(1) 62,645 57,851 8.3 %
SSS(1) performance includes all SIR restaurants, except for those restaurants that were not open for the entire comparable periods in Fiscal 2026 and Fiscal 2025. Accordingly, SSS(1) performance for Q1 2026 does not include the new Scaddabush restaurant in Barrie, Ontario, the closed Jack Astor's locations in North York, Ontario and Longueuil, Quebec, and the Duke's Refresher at the intersection of Queen Street East and Broadview Avenue (now closed), since these were not open for both comparable periods in Fiscal 2026 and Fiscal 2025. The seasonal Abbey's Bakehouse(R) is also not included as it is not a SIR restaurant.
Net income (loss) and comprehensive income (loss) was $5.8 million for Q1 2026, compared to ($5.3) million for Q1 2025. The positive variance primarily reflects increased earnings from restaurant operations and changes in the amortized cost of the Ordinary LP Units and Class A Units of the SIR Royalty Limited Partnership (the "Partnership") that SIR holds. These non-cash changes, which resulted in income of $4.9 million in Q1 2026 and an expense of $3.7 million in Q1 2025, are due to variations in the underlying unit price of the Fund compared to the end of Fiscal 2025 and Fiscal 2024, respectively.
Adjusted Net Earnings (Loss)(2) were $0.8 million in Q1 2026 compared to ($1.6) million in Q1 2025. The positive variance in Q1 2026 is primarily attributable to a $2.1 million increase in earnings before interest and income taxes and a $0.2 million decrease in other expenses.
Liquidity and Capital Resources
As at November 23, 2025, SIR had cash of $10.2 million (net of the cash balance of the Partnership) compared to $12.5 million as at August 31, 2025, and had drawn approximately $37.2 million against the $68.0 million maximum principal borrowing amount under the Company's credit facility.
Outlook
SIR continues to monitor consumer spending behavior in light of current evolving macroeconomic factors, including inflation, interest rates and the impact of new cross-border tariffs between Canada and the United States, and their potential impact on the Canadian economy and consumer confidence. Ongoing business impacts due to changes in the minimum wage and rising commodity costs have been influential in the bar and restaurant industry's changes in pricing overall.
SIR continues to innovate and provide immersive new product and service offerings to increase dine-in guest visits to its restaurants and to capitalize on the growth of take-out and delivery services in commercial foodservice.
The new Scaddabush location in Barrie, Ontario (opened in June 2025) is expected to be added to the Royalty Pooled Restaurants effective January 1, 2026.
The permanently closed Jack Astor's restaurant in the Greenfield Park neighborhood of Longueuil, Quebec (closed on April 27, 2025) will cease to be a Royalty Pooled Restaurant effective January 1, 2026.
The new Jack Astor's + Freida's location in Oshawa, Ontario (opened in December 2025) is expected to be added to the Royalty Pooled Restaurants effective January 1, 2027.
SIR has leased two properties -- in Windsor, Ontario and Aurora, Ontario -- upon which it plans to develop two new Scaddabush locations. There can be no assurance at this time that these planned new restaurants will be opened, or that either of these two new locations will become part of the Royalty Pooled Restaurants.
SIR is pursuing additional sites to continue the successful growth of Scaddabush. SIR will also continue its practice of investing in existing restaurants to drive improved sales and earnings. In consideration of the ongoing economic and market conditions mentioned above, restaurant opening and renovation plans will be reviewed regularly and adjusted as necessary.
Reconciliation of Adjusted Net Earnings(2)
The following table reconciles net income (loss) and comprehensive income (loss) to Adjusted Net Earnings (Loss)(2) for the 12-week periods ended November 23, 2025 and November 17, 2024.
12-Week Period 12-Week Period
EndedNovember 23, EndedNovember 17,
2025 2024
(in thousands of dollars)(unaudited)
Net income (loss) and comprehensive
income (loss)
for the period 5,837 (5,299)
Change in amortized cost of Ordinary
LP Units and
Class A LP Units of the Partnership (4,949) 3,704
Adjusted Net Earnings (Loss)(2) 888 (1,595)
About SIR Corp.
SIR Corp. is a privately held Canadian corporation that owns a portfolio of 54 restaurants in Canada. SIR's Concept brands include Jack Astor's Bar and Grill(R) with 36 locations, and Scaddabush Italian Kitchen & Bar(R) with 14 locations. SIR also operates one-of-a-kind "Signature" brands including The Loose Moose(R), Reds(R) Square One and Edna + Vita$(TM)$ . All trademarks related to the Concept and Signature brands noted above are used by SIR under a License and Royalty Agreement with SIR Royalty Limited Partnership. SIR also owns a Duke's Refresher(R) + Bar location, which is currently not part of the Royalty Pool. For more information on SIR or the SIR Royalty Income Fund, please visit www.sircorp.com.
About SIR Royalty Income Fund
The Fund is a trust governed by the laws of the province of Ontario that receives distribution income from its investment in the SIR Royalty Limited Partnership and interest income from the SIR Loan. The Fund intends to pay distributions to unitholders on a monthly basis.
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