DB:305

Stock Analysis Report

Executive Summary

Recipe Unlimited Corporation operates as a full-service restaurant company.

Snowflake

Fundamentals

Mediocre balance sheet unattractive dividend payer.


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


Market Performance


7 Day Return

0.7%

DB:305

-1.9%

DE Hospitality

1.5%

DE Market


1 Year Return

1.5%

DB:305

-50.5%

DE Hospitality

-5.8%

DE Market

305 outperformed the Hospitality industry which returned -52.3% over the past year.

305 outperformed the Market in Germany which returned -7.4% over the past year.


Share holder returns

305IndustryMarket
7 Day0.7%-1.9%1.5%
30 Day1.5%-4.0%1.3%
90 Day2.6%-9.2%2.2%
1 Year3.2%1.5%-47.1%-50.5%-2.8%-5.8%
3 Year-7.3%-11.3%-3.4%-16.8%28.8%17.6%
5 Yearn/a-12.2%-29.7%26.2%8.7%

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

No news available

Valuation

Is Recipe Unlimited undervalued based on future cash flows and its price relative to the stock market?

18%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Recipe Unlimited's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Recipe Unlimited's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Recipe Unlimited is overvalued based on earnings compared to the DE Hospitality industry average.

Recipe Unlimited is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Recipe Unlimited earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Recipe Unlimited is overvalued based on assets compared to the DE Hospitality industry average.


Next Steps

Future Growth

How is Recipe Unlimited expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

-2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Recipe Unlimited's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).

Recipe Unlimited's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Recipe Unlimited's revenue growth is positive but not above the Germany market average.

Recipe Unlimited's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.

Recipe Unlimited's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Recipe Unlimited will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Recipe Unlimited performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Recipe Unlimited's year on year earnings growth rate has been positive over the past 5 years.

Recipe Unlimited's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Recipe Unlimited's 1-year earnings growth is negative, it can't be compared to the DE Hospitality industry average.


Return on Equity

Recipe Unlimited has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Recipe Unlimited used its assets less efficiently than the DE Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Recipe Unlimited's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Recipe Unlimited's financial position?


Financial Position Analysis

Recipe Unlimited's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Recipe Unlimited's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Recipe Unlimited's level of debt (90%) compared to net worth is high (greater than 40%).

Recipe Unlimited had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (47.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

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

1.71%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Recipe Unlimited's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.45%).

Recipe Unlimited's dividend is below the markets top 25% of dividend payers in Germany (3.87%).

Recipe Unlimited has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Recipe Unlimited only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.7x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Recipe Unlimited's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Frank Hennessey (54yo)

1.1yrs

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

Frank's remuneration is higher than average for companies of similar size in Germany.

Insufficient data for Frank to compare compensation growth.


Management Age and Tenure

3.9yrs

Average Tenure

55yo

Average Age

The tenure for the Recipe Unlimited management team is about average.


Board Age and Tenure

4.2yrs

Average Tenure

59yo

Average Age

The tenure for the Recipe Unlimited board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

Buy€143,66525 Jul 18
William Gregson
EntityIndividual
Role
Executive Chairman of the Board
Chairman of the Board
Shares9,460
Max Price€15.19

Ownership Breakdown


Management Team

  • Ken Grondin (55yo)

    Chief Financial Officer

    • Tenure: 5.7yrs
    • Compensation: CA$3.35m
  • Douglas Moffat

    Executive VP

  • Ken Otto (53yo)

    Chief Development Officer & President of Family Dining Division

    • Tenure: 4.8yrs
    • Compensation: CA$724.48k
  • Frank Hennessey (54yo)

    Chief Executive Officer

    • Tenure: 1.1yrs
    • Compensation: CA$4.64m
  • Grant Cobb (57yo)

    Senior Vice President of Casual Dining Division

    • Tenure: 10.8yrs
    • Compensation: CA$459.41k
  • Bill Gregson (59yo)

    Executive Chairman of the Board

    • Compensation: CA$3.67m
  • Pierre Rivard

    President of Groupe St-Hubert

    • Tenure: 2.8yrs
    • Compensation: CA$652.27k
  • Steve Pelton

    Senior Vice President of Landing & Bier Markt

    • Tenure: 3.9yrs
    • Compensation: CA$283.16k
  • Julie Denton

    Chief People Officer

    • Tenure: 0.4yrs
  • Dave Lantz

    VP, General Counsel & Secretary


Board Members

  • Steve Gunn (63yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$95.00k
  • Sean Regan (54yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: CA$85.00k
  • Christy Clark (52yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: CA$54.49k
  • Bill Gregson (59yo)

    Executive Chairman of the Board

    • Tenure: 4.2yrs
    • Compensation: CA$3.67m
  • Michael Norris (65yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: CA$85.00k
  • David Aisenstat

    Vice Chairman

    • Compensation: CA$16.25m
  • Paul Jeffery

    Chairman Emeritus of Kelsey’s International Inc

  • John Rothschild (68yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: CA$85.00k
  • Chris Hodgson (56yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: CA$85.00k

Company Information

Recipe Unlimited Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Recipe Unlimited Corporation
  • Ticker: 305
  • Exchange: DB
  • Founded: 1883
  • Industry: restaurants
  • Sector: consumer services
  • Market Cap: CA$1.655b
  • Listing Market Cap: CA$1.100b
  • Shares outstanding: 61.30m
  • Website: Click here

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 full-service restaurant company. The company operates through four segments: Corporate Restaurants, Franchise Restaurants, Retail and Catering, and Central Operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/24 22:07
End of Day Share Price2019/06/24 00:00
Earnings2019/03/31
Annual Earnings2018/12/30


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.