Please stand by. We're about to begin. Thank you, everyone, and welcome to the A&W Revenue Royalties Income Fund Q4 2021 Results Conference Call. Today's call is being recorded. Now at this time, I would like to turn the call over to Susan Senecal. Please go ahead. Thanks so much. Good afternoon, everyone, and thanks for taking the time to attend our call today. I'm Susan Senecal, President and CEO of A&W Food Services of Canada Inc., and CEO of the A&W Revenue Royalties Income Fund. With me on the call today is Kelly Blankstein, who's the Chief Financial Officer of A&W Food Services in the fund, and Lisa Marzocca, who's our Director of Finance. Today, we're presenting the fund's results for the fourth quarter, which ended on December 31, 2021. I'm pleased to report that we ended the year with a strong fourth quarter. Royalty Pool same-store sales growth was 13.8% as compared to the fourth quarter of 2020, bringing the annual Royalty Pool same-store sales growth for 2021 to 14%. Due to the strong performance of the restaurants in the Royalty Pool, the fund's distribution rate was increased three times in 2021, and including the CAD 0.05 per unit special distribution that was paid to unitholders on December 31, 2021, the distributions declared by the fund in 2021 increased by 14.6% as compared to 2020. The fund's current monthly distribution rate of CAD 0.155 per unit translates to an annualized distribution rate of CAD 1.86 per unit. I'll now turn things over to Kelly, who will review the fund structure and go through the financial results for the quarter. Thank you, Susan. Good afternoon, everyone. Before we can tell you more about our results, I of course need to read you the following comment on forward-looking information. Certain statements in this presentation may be forward-looking in nature. These include Food Services' expectation that the food service industry, and more particularly the QSR segment, will recover from the impacts of COVID-19. Food Services' belief that its mission and its strategic initiatives will help it to continue to rebound from the impact of COVID-19, statements regarding the food service industry resuming growth, timing for releasing the annual audited financial statements and MD&A of the Fund, and the expectation that growth of new locations, industry-leading innovation, a safe and stable supply chain, and continued efforts to consistently deliver great-tasting food and a better guest experience will contribute to building loyalty and enhancing performance over the long term. Actual results may differ from those expressed or implied in these forward-looking statements. The forward-looking statements contained in this presentation are subject to a number of risk factors, including risks related to COVID-19, the ability of A&W Food Services to implement its strategic strategies regarding the marketing of the A&W system, 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. Any forward-looking statements in this presentation should be evaluated in light of these important factors. Now I'll spend a few minutes reviewing the Fund's structure, and then we can go through the financial results for the quarter. After that, Susan will provide an update on the impact that COVID-19 has had and continues to have on A&W Restaurants, and we'll of course, be happy to answer any questions at the end of our call. For those of you who might not be familiar with the Fund structure, I'll quickly review the highlights. The Fund is the majority owner of A&W Trade Marks Inc, which, through its interest in A&W Trade Marks Limited Partnership, owns the A&W trademarks used in Canada. These trademarks include some of the best-known names in the Canadian food service industry, including A&W Root Beer, The Burger Family, and Chubby Chicken. The Fund earns income through its ownership in A&W Trade Marks, who, through the partnership, licenses the A&W trademarks to A&W Food Services. In return for the use of these trademarks, Food Services pays A&W Trade Marks a royalty equal to 3% of the gross sales reported by A&W Restaurants in the Royalty Pool. Royalties lost due to the permanent closure of restaurants are replaced with royalties from new restaurants at the time of the next expansion of the Royalty Pool. Until then, Food Services continues to pay the royalty as if the restaurant had not closed. This is a top-line fund, meaning the distributable cash available to make distributions to unitholders is based on the sales of the restaurants in the Royalty Pool, with only minimal operating expenses associated with operating the fund. Growth in the Fund is achieved in two ways, first, and most importantly, by increasing the same-store sales of the restaurants in the Royalty Pool, and secondly, by adding new restaurants to the pool each year. On the second point, the royalty pool is expanded at the beginning of each year by adding new A&W restaurants opened, less any restaurants which have permanently closed. On January 5, 2022, our most recent royalty pool expansion, the royalty pool was increased from 994 restaurants to 1,015 restaurants. Another important aspect of the Fund is that Food Services owns the equivalent of 26% of the units of the Fund on a fully diluted basis through its ownership of limited voting units of the Fund and common shares of Trade Marks, both of which are exchangeable at the option of Food Services for units of the Fund. The 26% ownership stake takes into account the common shares of Trade Marks that were issued to Food Services on January 5, 2022, as part of the annual Royalty Pool amendment. As a result, the interests of FoodServices are closely aligned with the interests of unitholders. Now I'll go to the financial results for the fourth quarter of 2021 as compared to the fourth quarter of 2020. The news release that we issued earlier today, of course, summarizes those financial results of the Fund, and the annual audited financial statements and MD&A will be released in the coming days. 13.8% Royalty Pool same-store sales growth achieved in the quarter was primarily driven by there being fewer COVID-19 related restrictions in place, which led to a reduction in the number of A&W restaurants that were temporarily closed or were not able to offer dine-in services as compared to the fourth quarter of 2020. We are delighted to report that as of today and December 31, 2021, all of the A&W restaurants that had been temporarily closed due to COVID-19 related restrictions have reopened. Royalty income for the fourth quarter of 2021 was CAD 15 million based on gross sales reported by restaurants in the Royalty Pool of CAD 499 million, compared to royalty income of CAD 13.4 million and gross sales reported by A&W restaurants in the Royalty Pool of CAD 445 million for the fourth quarter of 2020. Annual royalty income for 2021 was CAD 47.1 million based on gross sales reported by restaurants in the Royalty Pool of CAD 1.57 billion, compared to royalty income of CAD 44.4 million and gross sales reported by A&W Restaurants in the Royalty Pool of CAD 1.35 billion for 2020. The 12% increase in royalty income for the quarter and 16.5% increase for the year is attributable to Royalty Pool same-store sales growth and the gross sales from the 23 net new restaurants added to the Royalty Pool on January 5, 2021. The increase in royalty income for the quarter was partially offset by there being six fewer days in the fourth quarter of 2021 as compared to the fourth quarter of 2020. The increase in royalty income for the year was partially offset by there being one less day in 2021 than in 2020. Royalty Pool same-store sales growth is based on an equal number of days in the quarter and year. Of significant interest to unitholders is the amount of distributable cash that the fund has generated to pay distributions to unitholders and dividends to Food Services, as well as the payout ratio. Distributable cash generated in the fourth quarter of 2021 was CAD 12.4 million, compared to CAD 9.4 million in the fourth quarter of 2020. On an annual basis, the fund generated CAD 36.3 million in distributable cash for 2021, compared to CAD 30 million in 2020. This CAD 6.3 million year-over-year increase in distributable cash generated can be attributed to a CAD 6.7 million increase in royalty income and a CAD 177,000 decrease in general and administrative expenses, partially offset by a CAD 337,000 increase in net interest expense and CAD 175,000 in financing fees that were paid in relation to the renewal of A&W Trade Marks' credit facility, which was completed in the third quarter of 2021. The payout ratio for the fourth quarter of 2021 was 81.5%, compared to 162% for the same quarter of 2020. The annual ratio for 2021 was 92.3% compared to 93.8% for 2020. Four monthly distributions totaling CAD 0.615 per unit and one special distribution of CAD 0.05 per unit were declared in the fourth quarter of 2021, compared to four monthly distributions totaling CAD 0.40 per unit and two special distributions totaling CAD 0.50 per unit in the fourth quarter of 2020. 12 monthly distributions totaling CAD 1.69 per unit and one special distribution of CAD 0.05 per unit were declared in 2021, compared to nine monthly distributions totaling CAD 1.18 per unit and two special distributions totaling CAD 0.50 per unit in 2020. No monthly distributions were declared in the second quarter of 2020, as the trustees had temporarily suspended monthly distributions due to COVID-19. Total monthly distributions and special distributions declared in 2021 were CAD 1.74 per unit, as compared to total monthly distributions and special distributions of CAD 1.518 per unit in 2020. The current monthly distribution of CAD 0.155 per unit, as Susan had indicated, translates to an annualized distribution rate of CAD 1.86 per unit. Now back over to you, Susan. Thanks, Kelly. The actions required in 2020 and 2021 in response to COVID-19 have adversely impacted A&W Restaurants and their operations across Canada, particularly for those restaurants located on urban street fronts and in shopping centers. Since the second quarter of 2020, when COVID-19 impacts on A&W were at their peak, the impact of COVID-19 on the Royalty Pool same-store sales has lessened. There does, however, continue to be uncertainty related to COVID-19 and its impact on our business. It's possible that there will be restaurants that are required to temporarily close, or that other restrictions or requirements are introduced affecting operations, guest counts, and/or sales. Our objective is to ensure that A&W's restaurants are able to safely operate and that they have the ability to emerge from this period of uncertainty in a financial condition that enables them to compete effectively and grow their businesses. Food Services and its franchisees have worked together throughout the pandemic on initiatives to help accelerate sales recovery. Key initiatives include promotional activity, strengthening and expanding partnerships with third-party delivery service providers, increasing the speed of service for drive-thru, and continuing to evolve the technology we need to be highly convenient for our guests. We believe that the food service industry, and more particularly, the quick service restaurant segment of the industry, will recover from the impacts of COVID-19. However, the timing and the strength of that recovery cannot yet be predicted with any degree of certainty. During the pandemic to date, various levels of government have offered a number of important financial programs, which have helped support individual restaurant businesses, including A&W franchisees. However, the eligibility criteria for most of these programs has become stricter, and some programs have ceased. The health and safety of A&W's customers and restaurant team members remains a top priority. We believe that Food Services' mission to become number one with millennial burger lovers, chosen and trusted for truly good food and the convenience they crave, will help us continue to rebound from the impacts of COVID-19. Strategic initiatives, including repositioning and differentiating the A&W brand through the use of natural ingredients, continued new restaurant growth, and delivering an industry-leading guest experience, have all contributed to A&W's strong appeal and the trust it has built with Canadian consumers over many years. These strengths will be key to delivering strong results as the food service industry resumes growth. Food Services opened 33 new restaurants across the country in 2021, 13 of which opened in the fourth quarter, bringing the total number of restaurants in Canada to 1,028 as of December 31, 2021. A&W's brand positioning remains strong. The growth of new locations and industry-leading innovation, along with a safe and stable supply chain and continued efforts to consistently deliver great tasting food and a better guest experience, are all expected to contribute to building loyalty and enhancing the performance over the long term. Food Services is committed to the long-term health and success of its franchise network and the fund. Thanks very much for your attention, and we would now be happy to answer any questions. Thank you. If you would like to ask a question, simply press the star key followed by the digit one on your telephone keypad. Also, if you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Once again, it's star one if you would like to ask a question or make a comment. We'll pause for a moment. Again, it's star one if you would like to ask a question or make a comment. We'll first hear from Tom Burke of Canaccord Genuity. Hi, Tom. Hey, guys. Congrats on the quarter. Thank you. Obviously, the elephant in the room needed to discuss more, and maybe you addressed it during your prepared remarks because I got on just a bit late, all about, you know, inflation and, you know, this is a really big story that we haven't confronted in a very long time, and I just wanted your thoughts on, obviously, the challenges around getting, you know, quality employees, and all the stuff revolving around food inflation. Could you talk about that? Sure. Yeah, definitely a question that's on lots of people's minds, and I've commented that, you know, based on our sort of predicting capabilities prior to the pandemic, we all would have guessed different things. The economy's been, you know, astonishingly resilient during a long period of time when we wouldn't have necessarily expected that. Inflation does certainly seem like a certainty, more and more sort of people coalescing around the idea that inflation will be part of the economy for a good period of time. What we're seeing is that food inflation is certainly there. That's happening in grocery stores. That's happening in food service. At the same time, you know, there's also supply chain disruptions that, you know, are raising in importance. If there's elephants in the room, I think one of them that's standing out is, you know, pricing is one piece of it, and then availability and continuity of supply is another one that people are working on. I believe that, you know, it's kind of a dual thing, where from a perspective of inflation, you know, it is something that's a reality. There's a lot more money in the economy, and eventually this kind of cycles round, and it impacts our guests' ability to have disposable income and to be in the food service market in the way that they had previously. I think we're looking at it from two sides. One side is that, you know, having a stable supply of food and certainly the costs of producing that, storing that, transporting that have gone up, so we expect that there will be price increases and cost increases going forward. At the same time, you know, it's important for us to recognize and for all of food service to recognize that our guests don't have unlimited availability of funds, and so we'll have to be really careful and prudent in terms of how we manage the pricing in our restaurants and look for efficiencies so that we're able to continue to deliver great value on that side. What do you think if we can talk maybe a bit philosophically about that, what are the, you know, a large obviously a large organization with tremendous scale, you've shown over the years about just great innovation in bringing in new products, bringing in new ingredients, et cetera. What are the competitive advantages for an organization like A&W in a situation like this? Is it the, you know. Are you agile enough? Obviously it's, you know, you can have obviously decent negotiating power with suppliers, et cetera. Can you dive into that a little bit more? Sure. I think, I mean, whether it's competitive advantage or just a plain old advantage is the long-term partnerships that we have with so many of our suppliers really stand us in good stead in terms of our ability to innovate, as you mentioned, but also in terms of being able to assure consistent supply, which I think has been our number one goal, and we've been able to continue that throughout some pretty big challenges. That's super important to us. In terms of agility, you know, again, because we've had these long-term relationships, I think we're able to see into the future a little bit, you know, maybe more quickly and be able to adapt, and we certainly have proven that through, you know, floods in B.C. and highway closures and in addition to pandemic impacts, and I think there's a, you know, I could continue listing some of the challenges that have impacted our ability to give 100% availability of foods to our restaurants, but we've managed through that really, really well, and it's with the support and help of our partners, whether that's the distributors or the people supplying our products. In some cases, many cases, we have personal relationships that, you know, date back many, many years. You might wonder about agility and thinking, "Okay, well, that's great on the stability side. What about the agility side and able to changes?" We're constantly looking because we're in the innovation business, I would say, in terms of looking for what's next and helping our guests get something that they might not expect or that they might not have even thought of, and being able to get it conveniently and affordably. That causes us to cast our eyes, you know, over a large number of different possibilities. When you do that, you know, you come across things, you come across ideas, and those ideas could be for innovation. Those ideas could also just be for completing your supply in a way that you know can meet sort of local conditions, and that's been very useful to us as well. Just a couple of thoughts for you on the, sort of value we see in the partnerships, but also the value that we see in sort of the constant looking for what's next and how that translates into potential relationships for the future and potential ways to be agile and to respond to individual and local circumstances. You know, when we look back, say, you know, the days where A&W initiated, of course, the famous, you know, hormone-free, steroid-free beef, et cetera. You know, in the early days, I think, you know, you had to even go and look, you know, outside of Canada and have international sourcing to make sure that there was a security of supply, et cetera. Are you finding now more these days that there is, or there should be a more, an intense focus on having a more locavore-oriented supply chain? Can we talk about that? Sure. Well, you know, we're a Canadian company, but our home office is, you know, here in North Vancouver, and we always look to Canada first when it comes to sourcing supply for our restaurants. We just think it's good business, it's convenient business, and that was the way that we always proceed. At the same time, sometimes, as you say, in order to really doubly ensure that when we've made a promise or a commitment to our guests, that we're able to follow through on that, we do need to make sure that we've got some, you know, redundancies and duplications and ability to expand quickly or contract or change when we need to. It does cause us to look, you know, it's a global world, and we sometimes look outside, but we always end up building, you know, advantage for Canada. I think the fact that we're here has really been a bit of a plus to a lot of our suppliers and our producers that know us would say, "Yeah, this is good. When we can have consistency in terms of someone buying, that really gives us the confidence to invest and the confidence to make change." I think it's been a win on both sides of things, but we're certainly never at a loss for new ideas when it comes to making sure that our guests are gonna get exactly what they are hoping for when they come to our restaurants. Great. Any kind of categories or novelties that we should all be just generally looking out for? You know, you guys obviously are a you know, a willing participant in any of the new kind of trends in you know, great new food. Just wanted to see if I could get any thoughts in that regard. Sure. Think drinks. We've announced that we are launching our Brew Bar and that is going very well. We expect that by the summer, more and more Canadians will be able to get not just a frosty mug of root beer in our restaurants, but a frosty mug of frozen root beer to go along with that or to substitute in for that or to try for the first time. Of course, that's accompanied by a wide range of beverages, including hot espresso-based beverages. That's a new initiative, and we think that it pairs perfectly with the great food that we have to offer. That would be something to keep your eye open for. Okay, great. Thanks very much. Perfect. Thank you. Again, it's star one if you would like to ask a question or make a comment. We'll pause for a moment. It appears there are no further questions at this time. Thanks very much. Thanks to all of you for attending our call today. We do look forward to updating you on our results after our first quarter of 2022. In the meantime, if anyone does have questions that weren't answered on our call today or you didn't think of, please feel free to call either Kelly Blankstein or myself at 604-988-2141. Thanks again. That does conclude today's conference. Thank you all for your participation. You may now disconnect. Thanks.