A&W opens nine restaurants and expands its ambitions in Canada

A&W is continuing to expand in Canada, opening nine new restaurants in the third quarter of its 2026 financial year and a second franchised Pret outlet. In its results published on 16 October, the company also sets out a new strategy that includes formats and business models intended to make franchise ownership more accessible.

Nine openings and rising sales

For the 12 weeks ended 6 September 2026, A&W reported system-wide sales of C$497.6 million. This represents an increase of C$18 million, or 3.8%, compared with the third quarter of the previous financial year. Like-for-like restaurant sales rose by 1.8%.

Susan Senecal, President and Chief Executive Officer, attributed the growth primarily to a nationwide smash-style burger promotion that ran for five of the quarter’s twelve weeks. This detail highlights the contribution of a short-term campaign to the results, without providing a basis for assuming a similar effect in future quarters.

The nine openings bring the A&W network to 1,113 restaurants in Canada. This total covers the A&W brand: the new Pret outlet is reported separately in the company’s update.

For those in franchising, these results show two distinct developments: an increase in restaurant numbers and improved sales at comparable locations. Both indicators are rising, but they measure different things and do not directly indicate individual franchisees’ profitability.

New formats to make franchise ownership more accessible

The new mission and corporate strategy announced alongside the results place network expansion among A&W’s priorities. The company aims to strengthen its position as a burger brand, gain market share and improve franchisee success.

One element focuses specifically on restaurant growth: A&W plans to develop new formats and business models to make franchise ownership more accessible and create further opportunities for its franchisees.

The announcement therefore sets a direction rather than outlining a detailed investment programme. It does not specify the capital required, floor space or opening timetable for these future formats. For prospective franchisees, the distinction matters: an ambition to improve accessibility is not yet a financial proposition with defined costs.

Menu innovation is also among the priorities. A&W highlights premium beef burgers, chicken, plant-based options and internationally inspired offerings. According to its strategy, these areas are intended to strengthen the brand’s appeal and attract more visits from the fastest-growing consumer groups.

Pret continues its expansion in high-footfall locations

Alongside this, A&W has opened its second franchised Pret outlet, at Vancouver International Airport. Susan Senecal described the early results as very encouraging, without disclosing sales figures for the location.

The opening forms part of a broader ambition for Pret in Canada. The company plans to add outlets in airports, on major urban streets and in other locations with high pedestrian footfall.

Pret’s development is therefore a separate strand of A&W’s growth. On one hand, the company is expanding its burger restaurant network; on the other, it is seeking to establish more locations for a food-to-go concept. However, the announcement gives neither a target number of future Pret openings nor a national rollout timetable.

Company results are distinct from franchisee performance

A&W’s company revenue reached C$79.3 million for the quarter, up 11%. Profit before tax rose by 12% to C$26.4 million, while adjusted earnings before interest, tax, depreciation and amortisation increased by 3% to C$26.6 million.

The corresponding adjusted margin nevertheless fell from 36.2% to 33.6%. A&W attributed this decline to a higher proportion of revenue from equipment and turnkey projects, which carry lower margins. These figures relate to the company and are not a measure of the financial performance of franchised restaurants.

Key takeaway: prospective and existing franchisees interested in this expansion should request the specific terms for their proposed format and location. National growth and the new strategic direction provide useful context, but they are no substitute for examining an individual outlet’s budget and operating conditions.