August 23, 2017

On Wednesday, the S&P 500 was down 0.4% while Toronto was up 0.5%.

Constellation Software was up 2.0%.

Royal Bank rose 1.1% after releasing a good earnings report and raising its dividend. I am optimistic that Canadian Western Bank will also have done well in its Q3. I don’t expect them to increase the dividend as they usually do that (if at all) in December and also as a conservative bank they may wish to hang onto their capital.

Statistics Canada reported on food services and drinking places for June. Compared to June of 2016, sales were up 5.0% for Canada as a whole and 2.5% for Alberta but down 1.3% for Saskatchewan. I was surprised when Boston Pizza indicated continued weakness in Alberta and Saskatchewan in Q2, compared to Q2 2016. This data arguably supports that to some extent. To some extent rising food prices have been offset by lower customer counts. Over time I expect Boston Pizza Royalties Income revenues to rise moderately with higher food costs leading to higher menu prices.