Keg sees profit as steak house sales jump

The Keg Royalties Income Fund had a $2.5-million profit in the first quarter, reversing a year-earlier loss as revenue at its restaurants advanced.

The Keg's net income amounted to 23 cents per share - a big improvement on the loss of $4.5-million or 25 cents per share a year earlier.

Revenue at Keg restaurants grew to $120.6-million from $117-million.

The Keg attributed the higher revenue to growth in same-store sales at the 102 restaurants in its royalty pool.

Distributions paid to unitholders fell to $2.9 million from $3.1 million as a result of income tax measures that became effective on Jan. 1.

"We are very pleased with the sales performance of Keg Restaurants Ltd. during the quarter in both Canada and the U.S.," said Christopher Woodward, chairman of The Keg Royalties Income Fund.

"Continued growth in sales translates into growth in royalty income, and distributable cash available for distributions to fund unitholders."