Topic: How To Invest

Q: I would like your thoughts on Recipe Unlimited Corp.—formerly Cara Operations—as a buy. It acquired The Keg earlier this year. Thanks.

Article Excerpt

A: Recipe Unlimited Corp., $27.24, symbol RECP on Toronto, (Shares outstanding: 62.4 million; Market cap: $1.7 billion; www.cara.com) changed its name from Cara Operations (symbol CAO) in May 2018. Like Canadian Tire, it has a long history in Canada. It was founded in 1883 and is Canada’s oldest restaurant company. Its shares traded on the Toronto Exchange from 1968 until 2004, when the business was taken private. In April 2015, it returned to the Toronto Exchange and began trading, after selling shares to the public at $23 a share. Recipe Unlimited both franchises and operates restaurants, mostly in Canada. Of the current 1,382 restaurants, 85% (1,169) are held by franchisees and 15% (213) are company-run. These operations are divided into restaurant chains: Harvey’s (with 282 locations), Swiss Chalet (217), New York Fries (161), St-Hubert (122), The Keg (106), Montana’s (105), East Side Mario’s (78), Kelsey’s (67), Original Joe’s (66), Milestones (48), Prime Pubs (43), State & Main (27), Burger’s Priest (15), Pickle…