Recipe Unlimited
Market Cap
CA$1.0b
Last Updated
2020/02/19 02:18 UTC
Data Sources
Company Financials +
Executive Summary
Recipe Unlimited Corporation operates as a full-service restaurant company.
Rewards
Risk Analysis
Snowflake Analysis
Mediocre balance sheet and slightly overvalued.
Similar Companies
Share Price & News
How has Recipe Unlimited's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RECP has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.2%
RECP
-1.4%
CA Hospitality
0.2%
CA Market
1 Year Return
-31.7%
RECP
12.5%
CA Hospitality
4.9%
CA Market
Return vs Industry: RECP underperformed the Canadian Hospitality industry which returned 12.5% over the past year.
Return vs Market: RECP underperformed the Canadian Market which returned 4.9% over the past year.
Shareholder returns
| RECP | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | -1.4% | 0.2% |
| 30 Day | -1.7% | -2.4% | 0.4% |
| 90 Day | -8.1% | 2.2% | 3.7% |
| 1 Year | -30.4%-31.7% | 13.3%12.5% | 8.2%4.9% |
| 3 Year | -23.5%-27.3% | 43.1%39.6% | 15.9%5.5% |
| 5 Year | n/a | 7.5%5.2% | 33.8%14.3% |
Price Volatility Vs. Market
How volatile is Recipe Unlimited's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Does Recipe Unlimited (TSE:RECP) Have A Healthy Balance Sheet?1 week ago | Simply Wall St
What Type Of Shareholder Owns Recipe Unlimited Corporation's (TSE:RECP)?3 weeks ago | Simply Wall St
Here's Why Recipe Unlimited's (TSE:RECP) Statutory Earnings Are Arguably Too ConservativeValuation
Is Recipe Unlimited undervalued compared to its fair value and its price relative to the market?
25.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RECP (CA$18.43) is trading below our estimate of fair value (CA$24.72)
Significantly Below Fair Value: RECP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RECP is poor value based on its PE Ratio (20.5x) compared to the Hospitality industry average (18.3x).
PE vs Market: RECP is poor value based on its PE Ratio (20.5x) compared to the Canadian market (16x).
Price to Earnings Growth Ratio
PEG Ratio: RECP is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: RECP is overvalued based on its PB Ratio (2.9x) compared to the CA Hospitality industry average (1.6x).
Next Steps
Future Growth
How is Recipe Unlimited forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
15.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RECP's forecast earnings growth (15.3% per year) is above the savings rate (1.4%).
Earnings vs Market: RECP's earnings (15.3% per year) are forecast to grow faster than the Canadian market (10.7% per year).
High Growth Earnings: RECP's earnings are forecast to grow, but not significantly.
Revenue vs Market: RECP's revenue (0.7% per year) is forecast to grow slower than the Canadian market (4.9% per year).
High Growth Revenue: RECP's revenue (0.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if RECP's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Recipe Unlimited performed over the past 5 years?
12.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RECP has a large one-off loss of CA$34.0M impacting its September 29 2019 financial results.
Growing Profit Margin: RECP's current net profit margins (4.4%) are lower than last year (8.4%).
Past Earnings Growth Analysis
Earnings Trend: RECP has become profitable over the past 5 years, growing earnings by 12.1% per year.
Accelerating Growth: RECP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RECP had negative earnings growth (-40.1%) over the past year, making it difficult to compare to the Hospitality industry average (-12.4%).
Return on Equity
High ROE: RECP's Return on Equity (15.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Recipe Unlimited's financial position?
Financial Position Analysis
Short Term Liabilities: RECP's short term assets (CA$234.7M) do not cover its short term liabilities (CA$358.8M).
Long Term Liabilities: RECP's short term assets (CA$234.7M) do not cover its long term liabilities (CA$1.5B).
Debt to Equity History and Analysis
Debt Level: RECP's debt to equity ratio (160.5%) is considered high.
Reducing Debt: RECP had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: RECP's debt is well covered by operating cash flow (38.5%).
Interest Coverage: RECP's interest payments on its debt are well covered by EBIT (7.4x coverage).
Balance Sheet
Inventory Level: RECP has a high level of physical assets or inventory.
Debt Coverage by Assets: RECP's debt is not covered by short term assets (assets are 0.4x debt).
Next Steps
Dividend
What is Recipe Unlimited's current dividend yield, its reliability and sustainability?
2.43%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RECP's dividend (2.43%) is higher than the bottom 25% of dividend payers in the Canadian market (1.89%).
High Dividend: RECP's dividend (2.43%) is low compared to the top 25% of dividend payers in the Canadian market (5.31%).
Stability and Growth of Payments
Stable Dividend: RECP has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: RECP's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (49.9%), RECP's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.6yrs
Average management tenure
CEO
Frank Hennessey (55yo)
1.8yrs
Tenure
CA$4,644,523
Compensation
Mr. Frank Hennessey has been Chief Executive Officer of Cara Operations Ltd since May 10, 2018. Mr. Hennessey served as the Chief Executive Officer and President of Imvescor Restaurant Group Inc. since Sep ...
CEO Compensation Analysis
Compensation vs Market: Frank's total compensation ($USD3.50M) is above average for companies of similar size in the Canadian market ($USD1.55M).
Compensation vs Earnings: Insufficient data to compare Frank's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 1.8yrs | CA$4.64m | no data | |
| Chief Financial Officer | 6.3yrs | CA$3.35m | 0.047% CA$487.3k | |
| President of Groupe St-Hubert | 3.4yrs | CA$652.27k | no data | |
| VP, General Counsel & Secretary | 0yrs | no data | no data | |
| Chief People Officer | 1.1yrs | no data | no data | |
| Executive VP | 0yrs | no data | no data | |
| Senior Vice President of Casual Dining Division | 11.4yrs | CA$459.41k | 0.16% CA$1.7m | |
| Senior Vice President of Landing & Bier Markt | 4.6yrs | CA$283.16k | no data | |
| President of Milestones Restaurants Inc | 0yrs | no data | no data | |
| Chief Development Officer & President of Family Dining Division | 5.4yrs | CA$724.48k | no data |
4.6yrs
Average Tenure
55.5yo
Average Age
Experienced Management: RECP's management team is considered experienced (4.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 6.3yrs | CA$85.00k | 0.038% CA$396.3k | |
| Independent Director | 6.9yrs | CA$95.00k | 0.057% CA$594.5k | |
| Independent Director | 8.1yrs | CA$85.00k | 0.048% CA$494.4k | |
| Vice Chairman | 0yrs | CA$16.25m | 0.14% CA$1.4m | |
| Chairman Emeritus of Kelsey’s International Inc | 0yrs | no data | no data | |
| Independent Director | 4.8yrs | CA$85.00k | no data | |
| Chairman of the Board | 0.08yrs | no data | 0.0080% CA$82.9k | |
| Independent Director | 4.8yrs | CA$85.00k | no data | |
| Independent Director | 1.8yrs | CA$54.49k | no data |
4.8yrs
Average Tenure
57yo
Average Age
Experienced Board: RECP's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Recipe Unlimited Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Recipe Unlimited Corporation
- Ticker: RECP
- Exchange: TSX
- Founded: 1883
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: CA$1.039b
- Shares outstanding: 56.38m
- Website: https://www.recipeunlimited.com
Number of Employees
Location
- Recipe Unlimited Corporation
- 199 Four Valley Drive
- Vaughan
- Ontario
- L4K 0B8
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RECP | TSX (The Toronto Stock Exchange) | Yes | Subordinate Voting Shares | CA | CAD | Apr 2015 |
| 305 | DB (Deutsche Boerse AG) | Yes | Subordinate Voting Shares | DE | EUR | Apr 2015 |
Biography
Recipe Unlimited Corporation operates as a full-service restaurant company. The company operates through four segments: Corporate Restaurants, Franchise Restaurants, Retail and Catering, and Central Operations. It operates and/or franchises restaurants under the Swiss Chalet, Harvey's, St-Hubert, The Keg, Milestones, Montana's, Kelsey's, East Side Mario's, New York Fries, Prime Pubs, Bier Markt, Landing, Original Joe's, State & Main, Elephant & Castle, The Burger's Priest, The Pickle Barrel, and 1909 Taverne Moderne brand names. As of December 30, 2018, the company operated 1,382 restaurants in Canada, the United States, Bahrain, China, Macao, Oman, Panama, Qatar, Saudi Arabia, and the United Arab Emirates. The company was formerly known as Cara Operations Limited and changed its name to Recipe Unlimited Corporation in May 2018. Recipe Unlimited Corporation was founded in 1883 and is headquartered in Vaughan, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 02:18 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/09/29 |
| Annual Earnings | 2018/12/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.