TRADING SYMBOL:  TSX: AW.UN   

VANCOUVER, April 30, 2020 /CNW/ - A&W Revenue Royalties Income Fund (the Fund) and A&W Food Services of Canada Inc. (A&W Food Services) today announced a correction to the sales levels of A&W restaurants in the Royalty Pool subsequent to March 13, 2020 originally reported on April 29, 2020.

In the Fund's and A&W Food Services' joint news release dated April 29, 2020 and the management's discussion and analysis of the Fund for the first quarter of 2020 and report of A&W Food Services to unitholders of the Fund for the first quarter of 2020, each dated April 28, 2020 and filed on SEDAR at www.sedar.com on April 29, 2020, it was inadvertently reported that as a result of the impacts of COVID-19, starting March 13, 2020, total sales of A&W restaurants in the Royalty Pool were approximately 42% of sales prior to March 13, 2020, including the impact of closed restaurants. 

Total sales of A&W restaurants in the Royalty Pool were actually 58% of sales prior to March 13, 2020, including the impact of closed restaurants. Accordingly, total sales of A&W restaurants in the Royalty Pool were down approximately 42% compared to the sales trend prior to March 13, 2020, including the impact of closed restaurants.

No other figures reported in the prior news release, management's discussion and analysis of the Fund for the first quarter of 2020 or report of A&W Food Services to unitholders of the Fund for the first quarter of 2020 are impacted by this inadvertent error.

ABOUT THE FUND
The Fund is a limited purpose trust established to invest in Trade Marks, which through its interest in A&W Trade Marks Limited Partnership (the Partnership), 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 A&W Food Services to use its trade-marks, Trade Marks (through the Partnership) is entitled to royalties equal to 3% of the gross sales reported by A&W restaurants in the Royalty Pool. 

The Royalty Pool is adjusted annually to reflect gross sales from new A&W restaurants, net of the gross sales of any A&W restaurants that have permanently closed.  Additional limited partnership units (LP units) are issued to A&W Food Services to reflect the annual adjustment.  A&W Food Services' additional LP units are exchanged for additional shares of Trade Marks which are exchangeable for units of the Fund. 

As at March 22, 2020 and April 29, 2020, A&W Food Services owned 23.6% of the common shares of Trade Marks, and therefore owned the equivalent of 23.6% of the units of the Fund on a fully-diluted basis.   

Trade Marks' dividends to A&W 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.

ABOUT A&W FOOD SERVICES
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^®.

Follow A&W on Facebook (www.facebook.com/AWCanada) and Twitter @AWCanada or visit www.awincomefund.ca.

Forward-Looking Information
Certain statements in this press release may contain forward-looking information within the meaning of applicable securities laws in Canada (forward-looking information). The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words.  The forward-looking information is based on assumptions that management considered reasonable at the time it was prepared. The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by the forward-looking information. For a discussion of factors which could cause results to differ from current expectations are described in the Fund's most recent Management Discussion and Analysis under the heading "Risks and Uncertainties" and the Fund's Annual Information Form under the heading "Risk Factors", available on SEDAR at www.sedar.com. The forward-looking information contained in this news release represent The Fund's expectations as of the date of this news release, and are subject to change after this date. The Fund assumes no obligation to update or revise any forward-looking information, except as required by applicable law. 

SOURCE A&W Revenue Royalties Income Fund