Mr. Paul Hollands reports

A&W REVENUE ROYALTIES INCOME FUND ANNOUNCES FIRST QUARTER 2015 RESULTS

A&W Revenue Royalties Income Fund and A&W Food Services of Canada Inc. have released results for the first quarter ended March 22, 2015. The fund will hold a conference call to discuss the results on Tuesday, April 28, 2015, at 1 p.m. Pacific Time (4 p.m. Eastern Time). The call can be accessed by dialling toll-free 1-800-524-8950 or 416-260-0113; passcode 7773770. A replay will be available until May 5, 2015, by dialling toll-free 1-888-203-1112 or 647-436-0148; passcode 7773770.

A&W restaurants in the royalty pool posted the strongest quarterly same-store sales growth in seven years, with same-store sales for the first quarter of 2015 growing by 9.1 per cent over the same quarter of 2014. The impressive same-store sales growth, along with the sales from 24 net new restaurants added to the fund's royalty pool in January, 2015, boosted the fund's sales and royalty income to a 10.3-per-cent increase for the quarter.

A&W Food Services' system sales growth for all A&W restaurants across Canada (which includes restaurants that have not yet been added to the royalty pool) was 12.5 per cent for the quarter. These strong quarterly sales pushed A&W Food Services' total system sales on a trailing four-quarter basis to over $1-billion.

The amount of cash generated by the fund in the quarter for distributions and dividends increased by 7.2 per cent to $4,083,000. Distributable cash per unit increased by one cent to 27.6 cents per unit, compared with 26.6 cents per unit for the same quarter of 2014. The trailing four quarters payout ratio is 95.9 per cent and surplus distributable cash on hand is $1.9-million.

"We are very pleased to report that our strong trend of positive same-store sales growth dating back to 2013 has continued into 2015," said Paul Hollands, president and chief executive officer of A&W Food Services. "Over the last two years, we have introduced simple, great tasting ingredients, farmed with care, to reposition and differentiate A&W as a 'better burger' quick service restaurant. Our guests have been delighted with this change, and I am pleased to report that A&W Food Services has broken the $1-billion sales threshold."

In 2013, A&W Food Services was the first major quick service restaurant chain to use only beef raised without the use of hormones and steroids. Chicken is one of the fastest-growing segments of the quick service restaurant industry, and A&W Food Services' move in 2014 to serve only chicken raised without the use of antibiotics was a key element in its strategy to accelerate growth. A&W Food Services also enhanced its breakfast menu by moving to eggs from hens fed only a vegetarian diet without animal byproducts. Breakfast was further supported by the launch in January, 2015, of organic and fair trade coffee, another first for a major chain.

Another major strategic initiative of A&W Food Services is the extensive reimaging program to modernize and enhance the appeal of existing A&W restaurants. The new design has been developed to create high visibility and instant recognition of the "Home of The Burger Family." Over half of A&W's existing restaurants have completed the reimage to the new design. Including the new restaurants opened in the new design since the beginning of the reimage program, 500 restaurants in the A&W chain now have the new design. "With our updated image as well as our better ingredients, we are attracting many new guests to our restaurants," Mr. Hollands said.

A&W Food Services is continuing to grow the number of restaurants across Canada, concentrating its growth in Ontario and Quebec. Three new A&W restaurants were opened in the first quarter of 2015.

 
                                   FINANCIAL HIGHLIGHTS
                    (in thousands of dollars except per-unit amounts)           

                                                             Jan. 1, 2015,       Jan. 1, 2014,
                                                        to March 22, 2015   to March 23, 2014

Same-store sales growth (1)                                           9.1%                4.6%
Number of restaurants in the royalty pool                             814                 790           
Sales reported by the restaurants in the royalty pool            $202,448            $183,584     
Royalty income                                                     $6,073              $5,507    
General and administrative expenses                                   259                 239
Net third party interest expense                                      535                 543
Current income taxes                                                1,196                 918
Total distributable cash generated for 
distributions and dividends (2)                                    $4,083              $3,807
Distributable cash per equivalent unit 
(2015 -- 14,781,656 units; 2014 -- 14,319,708 units)(2)(3)         $0.276              $0.266
Distributions and dividends declared per equivalent unit           $0.234              $0.234
Net income (4)                                                     $2,030              $2,440
Net income, excluding non-cash items (4)                           $4,083              $3,807 

Notes:

(1) Same-store sales growth is not an earnings measure recognized by IFRS (international 
financial reporting standards) and therefore may not be comparable with similar measures
presented by other issuers.  This information is provided as it is a key driver of growth
in the fund.
(2) Distributable cash is not an earnings measure recognized by IFRS and therefore may not
be comparable with similar measures presented by other issuers.  This information is provided
as it identifies the amount of actual cash available to pay distributions to unitholders
and dividends to A&W Food Services.
(3) The number of equivalent units and distributable cash per equivalent unit in 2015
includes the 92,390 limited partnership units exchangeable for 184,780 common shares of
Trade Marks, representing the remaining 20 per cent of the consideration for the Jan. 5, 2015,
adjustment to the royalty pool, which is held back until December, 2015, when the actual
annual sales are reported by the new restaurants.  The number of equivalent units and
distributable cash per equivalent unit in 2014 includes the 210,490 LP units exchanged for
420,980 common shares of Trade Marks, representing the final consideration paid in
December, 2014, for the Jan. 5, 2014, adjustment to the royalty pool.
(4) Net income in 2015 and 2014 includes non-cash losses on interest rate swaps, amortization
of deferred financing fees and deferred income taxes.  These non-cash items have no impact
on the fund's ability to pay distributions to unitholders.  The fund's net income excluding
these non-cash items is presented for information purposes only.

The fund's royalty income for the first quarter of 2015 was $6,073,000 based on sales of $202,448,000. This was an increase of 10.3 per cent from royalty income of $5,507,000 and sales of $183,584,000 for the first quarter of 2014. The increase in sales and royalty income was due to the same-store sales growth of 9.1 per cent for the quarter as compared with the same quarter of 2014, and from the additional sales from the 24 net new A&W restaurants added to the royalty pool on Jan. 5, 2015.

Distributable cash generated in the first quarter of 2015 to pay distributions to unitholders and dividends to A&W Food Services was $4,083,000, compared with $3,807,000 in the first quarter of 2014. Distributable cash generated per equivalent unit increased by one cent to 27.6 cents per unit in the first quarter of 2015, from 26.6 cents for the first quarter of 2014.

The fund's net income for the first quarter of 2015 was $2.03-million compared with $2.44-million for the first quarter of 2014. The decrease in net income was due to non-cash losses on interest rate swaps, which are required to be recorded in net income under international financial reporting standards. These non-cash items have no impact on the fund's ability to pay distributions to unitholders. Of more interest to unitholders is the distributable cash calculation, which identifies the amount of actual cash available to pay distributions to unitholders and dividends to A&W Food Services. As noted above, distributable cash for the quarter increased by 7.2 per cent, and the fund has a cumulative surplus of distributable cash on hand of $1,871,000. "Our strong financial results reflect the continued strength and growth of our business," said Mr. Hollands.

Two monthly distributions totalling 23.4 cents per unit were declared in the first quarter of 2015, the same as in the first quarter of 2014. The fund's annual distribution rate is $1.404 per unit, the same as 2014.

On Jan. 5, 2015, the annual adjustment to the fund's royalty pool took place. On that date, the number of A&W restaurants for which royalties are paid to the fund increased by 32 new restaurants that opened between October, 2013, and September, 2014, less eight restaurants that permanently closed during this period. The addition of these 24 net new A&W restaurants brings the total number of A&W restaurants in the royalty pool to 814.

A&W Food Services also announced today that it has declared and paid dividends in the amount of $3.5-million to its shareholders. These dividends were paid out of A&W Food Services' available working capital, and are separate and distinct from distributions declared by the fund to unitholders of the fund.

We seek Safe Harbor.