Canada's Diversified Royalty Q4 adjusted revenue rises 11%

Diversified Royalty

20/03/2026 24:03

Overview

Canada multi-royalty firm's Q4 adjusted revenue rose 11% yr/yr

Distributable cash for Q4 increased 8% yr/yr

AIR MILES royalty income declined, but new fixed royalty terms were announced for 2026

Outlook

Company to receive fixed annual AIR MILES® royalty of $3.9 mln, growing 2.42% per year, effective Feb 2026

Stratus royalty increases 5% annually until Nov 2026, then 4% per year thereafter

BarBurrito royalty grows 4% per year until March 2030; Cheba Hut royalty rises at least 3.5% annually

Result Drivers

CHEBA HUT ACQUISITION - Incremental revenue from Cheba Hut contributed to adjusted revenue growth

MR. LUBE + TIRES GROWTH - Strong same-store sales growth at Mr. Lube + Tires driven by higher tire and maintenance sales

AIR MILES WEAKNESS - Lower royalty income from AIR MILES due to continued softness in the rewards program

Company press release: ID:nGNX73P1XK

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Adjusted Revenue
C$20.41 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the entertainment production peer group is "buy"

Wall Street's median 12-month price target for Diversified Royalty Corp is C$4.50, about 13.4% above its March 19 closing price of C$3.97

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)