TSX:RECP

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Executive Summary

Recipe Unlimited Corporation operates as a multi-branded restaurant, catering, and food manufacturing company that franchises and operates restaurant brands. More Details


Snowflake Analysis

Concerning outlook with worrying balance sheet.


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 is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RECP's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-11.9%

RECP

-5.3%

CA Hospitality

-3.3%

CA Market


1 Year Return

-13.9%

RECP

-9.8%

CA Hospitality

-0.4%

CA Market

Return vs Industry: RECP underperformed the Canadian Hospitality industry which returned -7.8% over the past year.

Return vs Market: RECP underperformed the Canadian Market which returned 1.6% over the past year.


Shareholder returns

RECPIndustryMarket
7 Day-11.9%-5.3%-3.3%
30 Day1.9%-4.7%0.2%
90 Day42.8%11.9%14.2%
1 Year-12.7%-13.9%-6.7%-9.8%3.3%-0.4%
3 Year-35.9%-38.9%6.6%-2.6%13.7%2.8%
5 Year-24.7%-30.5%78.2%57.4%59.6%35.0%

Long-Term 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

Valuation

Is Recipe Unlimited undervalued compared to its fair value and its price relative to the market?

3.55x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RECP (CA$16.45) is trading above our estimate of fair value (CA$10.71)

Significantly Below Fair Value: RECP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RECP is unprofitable, so we can't compare its PE Ratio to the CA Hospitality industry average.

PE vs Market: RECP is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RECP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RECP is overvalued based on its PB Ratio (3.5x) compared to the CA Hospitality industry average (1.2x).


Next Steps

Future Growth

How is Recipe Unlimited forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

12.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RECP's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if RECP's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RECP's revenue (12.6% per year) is forecast to grow faster than the Canadian market (8% per year).

High Growth Revenue: RECP's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RECP's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has Recipe Unlimited performed over the past 5 years?

-30.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RECP is currently unprofitable.

Growing Profit Margin: RECP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RECP is unprofitable, and losses have increased over the past 5 years at a rate of 30% per year.

Accelerating Growth: Unable to compare RECP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RECP is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-7%).


Return on Equity

High ROE: RECP has a negative Return on Equity (-30.07%), as it is currently unprofitable.


Next Steps

Financial Health

How is Recipe Unlimited's financial position?


Financial Position Analysis

Short Term Liabilities: RECP's short term assets (CA$246.0M) do not cover its short term liabilities (CA$414.2M).

Long Term Liabilities: RECP's short term assets (CA$246.0M) do not cover its long term liabilities (CA$1.5B).


Debt to Equity History and Analysis

Debt Level: RECP's debt to equity ratio (213.2%) is considered high.

Reducing Debt: RECP's debt to equity ratio has increased from 33.4% to 213.2% over the past 5 years.

Debt Coverage: RECP's debt is well covered by operating cash flow (33.1%).

Interest Coverage: RECP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Recipe Unlimited current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RECP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RECP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RECP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RECP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RECP is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RECP's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Frank Hennessey (56 yo)

2.67yrs

Tenure

CA$920,000

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 ($USD720.15K) is below average for companies of similar size in the Canadian market ($USD1.18M).

Compensation vs Earnings: Insufficient data to compare Frank's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Frank Hennessey
Chief Executive Officer2.67yrsCA$920.00kno data
Kenneth Grondin
Chief Financial Officer7.25yrsCA$710.00k0.047%
CA$ 435.0k
Dave Lantz
VP, General Counsel & Secretaryno datano datano data
Julie Denton
Chief People Officer2yrsno datano data
Douglas Moffat
Executive VPno datano datano data
Grant Cobb
Senior Vice President of Casual Dining Division12.33yrsCA$459.41kno data
Steven Pelton
Senior Vice President of Landing & Bier Markt5.5yrsCA$283.16kno data
Wayne Holm
President of Milestones Restaurants Incno datano datano data
Kenneth Otto
Chief Development Officer & President of Family Dining Division6.33yrsCA$724.48kno data
Derek Doke
President of FranWorks4.17yrsno datano data
Nicholas Dean
President of Keg Restaurants Ltd.1.58yrsno datano data
Richard Scofield
President of St-Hubert Bar-B-Q Ltd.5.33yrsno data0.012%
CA$ 114.4k

5.3yrs

Average Tenure

56.5yo

Average Age

Experienced Management: RECP's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Rothschild
Independent Director7.25yrsCA$85.00k0.038%
CA$ 353.7k
Stephen Gunn
Independent Director7.83yrsCA$95.00k0.057%
CA$ 530.7k
Michael Norris
Independent Director9yrsCA$85.00k0.044%
CA$ 406.4k
David Aisenstat
Vice Chairman2.67yrsCA$750.00k0%
CA$ 0
Paul Jeffery
Chairman Emeritus of Kelsey’s International Incno datano datano data
Christopher Hodgson
Independent Director5.75yrsCA$85.00kno data
Paul Rivett
Chairman of the Board1.08yrsno data0.0080%
CA$ 74.0k
Sean Regan
Independent Director5.75yrsCA$85.00kno data
Christina Clark
Independent Director2.67yrsCA$85.00kno data

5.8yrs

Average Tenure

58yo

Average Age

Experienced Board: RECP's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RECP insiders have only sold shares 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$927.257m
  • Shares outstanding: 56.37m
  • Website: https://www.recipeunlimited.com

Number of Employees


Location

  • Recipe Unlimited Corporation
  • 199 Four Valley Drive
  • Vaughan
  • Ontario
  • L4K 0B8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RECPTSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCACADApr 2015
305DB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURApr 2015

Biography

Recipe Unlimited Corporation operates as a multi-branded restaurant, catering, and food manufacturing company that franchises and operates restaurant brands. The company operates through four segments: Cor...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/28 00:05
End of Day Share Price2021/01/27 00:00
Earnings2020/09/27
Annual Earnings2019/12/29


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.