Good day, and welcome to the A&W Revenue Royalties Income Fund Quarter 2 2022 Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Susan Senecal. Please go ahead, ma'am. Thanks, Ben. Good afternoon, everyone, and thanks for taking the time to attend this call today. I'm Susan Senecal, President and Chief Executive Officer of A&W Food Services of Canada and Chief Executive Officer of the A&W Revenue Royalties Income Fund. With me on the call today are Kelly Blankstein, who's the Chief Financial Officer of A&W Food Services and of the Fund, as well as Lisa Marzocco, who's a Director of Finance. Today, we're presenting the Fund's results for the second quarter, which ends June 19, 2022. I'm pleased to report that A&W has experienced strong growth in the first half of the year, with the Fund achieving royalty pool same-store sales growth of 12.2% in the second quarter and 12% for the year-to-date period. With the easing of COVID-19 public health restrictions, we've seen the number of guest visits continue to grow across all A&W restaurant concepts and across all provinces as compared to the first two quarters of 2021. In 2021, there were a number of A&W restaurants that were either temporarily closed or were not able to offer dine-in services due to the COVID-19 restrictions. Now I'll turn things over to Kelly, who will review the Fund's structure and run through the financial results for the quarter. Good afternoon, everyone, and thanks to Susan. Before we can tell you more about our results, I of course need to read the following comment on forward-looking information. Certain statements made in this presentation may be forward-looking in nature and include Food Services' belief that the food service industry, and more particularly the QSR segment, is recovering from the impacts of COVID-19. Food Services' belief that its mission and 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 interim unaudited financial statements and MD&A of the Fund, and the expectation that growth of new locations, industry-leading innovation, a 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 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, international conflict, 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 want to spend a few moments reviewing the Fund's structure, and then we'll 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, as well as provide an update on some of A&W's key corporate developments. We'll be, of course, happy to take your calls at the end of our conference. For those of you who might not be familiar with the Fund's structure, I will quickly review the highlights. The Fund is a 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 interest 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 the 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 that 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 open, less any restaurants which are permanently closed. On January 5, 2022, the 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 as of June 19, 2022, Food Services owned 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 Trademarks, both of which are exchangeable at the option of Food Services for units of the Fund. As a result of its ownership interest, the interests of Food Services are closely aligned with the interests of unitholders. Now I'll turn things over to talking about our financial results for the second quarter of 2022 as compared to the second quarter of 2021. The news release issued earlier today summarizes these financial results of the Fund, and the interim unaudited financial statements and MD&A will be released in the coming days. The 12.2% royalty pool same-store sales growth in the quarter was primarily driven by there being fewer public health restrictions related to COVID-19 in place across Canada during the second quarter of 2022 as compared to the second quarter of 2021. In Q2 of 2021, there were a number of A&W restaurants that were temporarily closed or were not able to offer dine-in services due to restrictions. There were no temporary closures of A&W restaurants due to COVID-19 restrictions in 2022, and by June 19, 2022, most restrictions, such as capacity limits on dine-in guests, reduced hours of operation, and requirements for dine-in guests to show proof of vaccination had been lifted. Royalty income for the second quarter of 2022 was CAD 12.2 million based on gross sales reported by restaurants in the royalty pool of CAD 406 million, compared to royalty income of CAD 10.5 million and gross sales reported by A&W restaurants in the royalty pool of CAD 351 million for the second quarter of 2021. Year-to-date royalty income was CAD 22.8 million based on gross sales reported by restaurants in the royalty pool of CAD 759 million, compared to royalty income of CAD 19.8 million and gross sales reported by A&W restaurants in the royalty pool of CAD 661 million for the comparable period in 2021. The increase in royalty income for the quarter and year-to-date period was driven by royalty pool same-store sales growth, which was +12.2% for the quarter and 12% year-to-date. The gross sales from the 21 net new restaurants added to the royalty pool on January 5th, 2022. The increase in royalty income for the year-to-date period was partially offset by there being one less day in the first quarter of 2022 as compared to the first quarter of 2021. Royalty Pool same-store sales growth is based on an equal number of days in the quarter. Of significant interest to unitholders is the amount of distributable cash that the fund has generated to pay distributions and the associated payout ratio. Distributable cash generated in the second quarter of 2022 was CAD 9.5 million, compared to CAD 7.9 million in the second quarter of 2021. The CAD 1.6 million increase in distributable cash generated arose because there was a CAD 1.7 million dollar increase in royalty income. Distributable cash generated in the year-to-date period was CAD 15.5 million, compared to CAD 14.4 million in the comparable period of 2021. This CAD 1.1 million year-to-date increase in distributable cash generated was attributable to the CAD 2.9 million increase in royalty income, partially offset by CAD 1.9 million increase in the current income tax expense. Increase in the current income tax expense in 2022 over 2021 is largely driven by a timing difference related to when income from the partnership is captured in Trade Marks' taxable income. three monthly distributions totaling CAD 0.465 per unit were declared in the second quarter of 2022, compared to three monthly distributions totaling CAD 0.405 per unit in the second quarter of 2021. five monthly distributions totaling CAD 0.775 per unit were declared in the 2022 year-to-date period, compared to five monthly distributions totaling CAD 0.64 per unit for the comparable period in 2021. The current monthly distribution rate of CAD 0.155 per unit translates to an annualized distribution of CAD 1.86 per unit. I want to turn now to discussing the payout ratio, which is a key metric to unitholders. The fund's long-term objective is to maintain an annual payout ratio at or below 100%. However, the fund strives to provide unitholders with regular monthly distributions, and as a result of seasonality of sales in A&W Restaurants and the timing of current income taxes, the quarterly payout ratio can fluctuate quarter to quarter. The payout ratio for the second quarter of 2022 was 89.2%, compared to 88.2% for the second quarter of 2021. The year-to-date payout ratio for 2022 was 110.7%, compared to 98.8% for the comparable period in 2021. The year-to-date payout ratio of 110.7% for 2022 is higher than the trailing four-quarter payout ratio of 92.5% due primarily to the timing impact of current income taxes. Now with that, I'll turn things back over to Susan. Thanks, Kelly. Since March 2020, COVID-19, of course, has adversely impacted A&W restaurant operations across the country, and particularly for those locations located on urban street fronts and in shopping centers. However, since the second quarter of 2020, when COVID-19 impacts on A&W were at their peak, the impact of COVID-19 on royalty pool same-store sales growth has steadily declined. The easing of restrictions has brought many Canadians back to their offices and into shopping centers, which has helped drive sales across all of A&W's concept types in all provinces in 2022. To help better understand where A&W is along the road to recovery from the impacts of COVID-19, we have disclosed in the fund's Q2 MD&A royalty pool same-store sales growth in 2022 over 2019, with 2019 being the most recent pre-COVID comparable period. Despite the ongoing impacts of COVID-19, the fund has achieved Royalty Pool same-store sales growth of +3.3% in the 2022 year-to-date period as compared to the comparable year-to-date period in 2019. The 3.3% Royalty Pool same-store sales growth over 2019 has been led by sales growth from 2019 to 2022 in A&W Restaurants with drive-thru. We believe that the food service industry, and more particularly the quick service restaurant segment of the industry, is recovering from the impacts of COVID-19. There continues to be uncertainty related to COVID-19 and the future impact it may have on our business. It is possible that there will be restaurants that are required to temporarily close or that other restrictions or requirements are in place which would affect 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 and enhance employee experience. Key initiatives include promotional activity, strengthening and expanding partnerships with third-party delivery service providers, increasing the speed of service for the drive-thru and serving guests via A&W mobile app. 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 delicious 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 quick-service industry resumes growth. Food Services has continued to grow new A&W restaurants, particularly in the key Ontario and Quebec markets. As of June 19, 2022, 12 new A&W restaurants have been opened in 2022, 7 of which were opened during the second quarter of 2022, bringing the total number of A&W restaurants in Canada to 1,037 as of June 19, 2022. During the second quarter on June 2, Food Services was excited to announce that it has signed a country agreement with Pret A Manger, which gives Food Services exclusive rights to use the Pret brand in Canada for a two-year pilot, during which Food Services will introduce the Pret brand within A&W restaurants in select markets in Canada. If the trial phase is successful, Food Services will have the exclusive right to expand the Pret brand across Canada pursuant to an agreed development plan. The first A&W restaurant to trial the Pret brand is located in Vancouver. It opened on July 20, and another Pret location is set to open in the Toronto area in the coming months. The royalty payable to the fund applies to Pret products sold within A&W restaurants to the extent that such restaurants are in the Royalty Pool. A&W's brand positioning remains strong. The 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 are all expected to contribute to building loyalty and enhancing performance over the long term. Food Services is committed to the long-term health and success of its franchise network and the fund. I'd also like to take this opportunity to remind everyone that A&W's annual Burgers to Beat MS is coming up on August 19th, where CAD 2 from every Teen Burger purchased on that day will go to the MS Society of Canada to support Canadians living with MS. Thank you very much for your attention, and we would now be happy to answer your questions. Thank you, ma'am. If you need to ask a question, please signal by pressing star one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star one to ask a question. We pause for just a moment to allow everyone opportunity to signal for question. Let me take the first question from Derek Lessard. The line is open. Please go ahead. Hi. Thank you for taking my question. How much have A&W restaurants increased prices so far year to date? What is your expectation of further pricing actions for the remainder of the year? Thanks for the question. Our restaurant operators are, they set their own prices in the restaurants, and we don't have an exact number of any, price changes in the restaurants at the moment that I can share with you, but I know that certainly costs have increased in the marketplace. What our restaurants are really focused on was retaining affordability and making sure that Canadians are able to affordably, enjoy A&W across the country. We have worked hard to work with our supplier partners as well as with our operators to, be as efficient as possible so that we can limit price increases at the retail level. Did that answer your question? It does. Thank you. Thank you. Again, press star one to ask a question. Okay. There is no further question at this time, and I'll return the conference back to you for any additional or closing remarks. Great. Thank you, and thanks to everyone for attending our call today. We look forward to updating you on our results after the third quarter of 2022. In the meantime, anyone who does have questions that weren't answered on our call today, please feel free to call either Kelly Blankstein or myself at 604-988-2141. Thanks again. We've concluded today's call. Thank you for your participation. You may now disconnect.