Q: Hi Peter,
I wonder if you might provide some colour on the Pret a Manger franchise agreement, how have things progressed. Would this be a a reason to purchase A&W stock and does the agreement allow stand alone stores separate from A&W.
Cheers,
I wonder if you might provide some colour on the Pret a Manger franchise agreement, how have things progressed. Would this be a a reason to purchase A&W stock and does the agreement allow stand alone stores separate from A&W.
Cheers,
5i Research Answer:
Pret a manger is expected to open its first standalone store in early 2024 in Toronto's financial district. The inital agreement between the two was that Pret would sell a range of its food products in A&W stores in Canada. This trial started in July of 2022. With Pret opening standalone stores, we do not see A&W being tied to this as it appears that Pret used A&W more as trial for its products before entering the Canadian market. Going forward, we do not see this creating significant value for A&W.