DB:305

Stock Analysis Report

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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.


Snowflake Analysis

Mediocre balance sheet and 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: 305's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

305

-3.0%

DE Hospitality

0.05%

DE Market


1 Year Return

-66.4%

305

-38.5%

DE Hospitality

3.4%

DE Market

Return vs Industry: 305 underperformed the German Hospitality industry which returned -34.4% over the past year.

Return vs Market: 305 underperformed the German Market which returned 4.5% over the past year.


Shareholder returns

305IndustryMarket
7 Day-2.5%-3.0%0.05%
30 Day-16.2%-11.5%5.5%
90 Day-11.2%13.3%19.9%
1 Year-65.5%-66.4%-35.9%-38.5%5.7%3.4%
3 Year-61.3%-63.3%-51.0%-57.7%3.4%-4.7%
5 Year-73.1%-75.2%-52.1%-62.2%10.4%-4.5%

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 compared to its fair value and its price relative to the market?

1.75x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 305's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 305's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 305 is unprofitable, so we can't compare its PE Ratio to the DE Hospitality industry average.

PE vs Market: 305 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 305's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 305 is good value based on its PB Ratio (1.7x) compared to the DE Hospitality industry average (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?

1.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 305's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if 305's earnings are forecast to grow faster than the German market

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

Revenue vs Market: 305's revenue (1.7% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: 305's revenue (1.7% 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 305'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?

-3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 305 is currently unprofitable.

Growing Profit Margin: 305 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 305 is unprofitable, and losses have increased over the past 5 years at a rate of -3.2% per year.

Accelerating Growth: Unable to compare 305's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 305 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-15.6%).


Return on Equity

High ROE: 305 has a negative Return on Equity (-6.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is Recipe Unlimited's financial position?


Financial Position Analysis

Short Term Liabilities: 305's short term assets (CA$512.3M) exceed its short term liabilities (CA$376.9M).

Long Term Liabilities: 305's short term assets (CA$512.3M) do not cover its long term liabilities (CA$1.8B).


Debt to Equity History and Analysis

Debt Level: 305's debt to equity ratio (277.3%) is considered high.

Reducing Debt: 305 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 305's debt is well covered by operating cash flow (24.7%).

Interest Coverage: 305 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 305's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 305'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 305's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 305's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 305 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 305's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Frank Hennessey (56yo)

2.17yrs

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 ($USD675.57K) is below average for companies of similar size in the German market ($USD1.03M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frank Hennessey
Chief Executive Officer2.17yrsCA$920.00kno data
Kenneth Grondin
Chief Financial Officer6.75yrsCA$710.00k0.047% CA$159.3k
Dave Lantz
VP, General Counsel & Secretaryno datano datano data
Julie Denton
Chief People Officer1.5yrsno datano data
Douglas Moffat
Executive VPno datano datano data
Grant Cobb
Senior Vice President of Casual Dining Division11.83yrsCA$459.41k0.16% CA$544.7k
Steven Pelton
Senior Vice President of Landing & Bier Markt5yrsCA$283.16kno data
Wayne Holm
President of Milestones Restaurants Incno datano datano data
Kenneth Otto
Chief Development Officer & President of Family Dining Division5.83yrsCA$724.48kno data
Derek Doke
President of FranWorks3.67yrsno datano data
Nicholas Dean
President of Keg Restaurants Ltd.1.08yrsno datano data
Richard Scofield
President of St-Hubert Bar-B-Q Ltd.4.83yrsno datano data

4.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 305's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Rothschild
Independent Director6.75yrsCA$85.00k0.038% CA$129.6k
Stephen Gunn
Independent Director7.33yrsCA$95.00k0.057% CA$194.3k
Michael Norris
Independent Director8.5yrsCA$85.00k0.048% CA$161.6k
David Aisenstat
Vice Chairman2.17yrsCA$750.00k0.14% CA$471.6k
Paul Jeffery
Chairman Emeritus of Kelsey’s International Incno datano datano data
Christopher Hodgson
Independent Director5.25yrsCA$85.00kno data
Paul Rivett
Chairman of the Board0.58yrno data0.0080% CA$27.1k
Sean Regan
Independent Director5.25yrsCA$85.00kno data
Christina Clark
Independent Director2.17yrsCA$85.00kno data

5.3yrs

Average Tenure

58yo

Average Age

Experienced Board: 305's board of directors are considered experienced (5.3 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: 305
  • Exchange: DB
  • Founded: 1883
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: CA$526.950m
  • Listing Market Cap: CA$339.506m
  • Shares outstanding: 56.36m
  • 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: Corporate Restaurants, Franchise Restaurants, Retail and Catering, and Central Operations. It operates and/or franchises restaurants under the Harvey’s, Swiss Chalet, Kelsey’s, East Side Mario’s, Montana’s, Milestones, Prime Pubs, Casey’s, Bier Markt, Landing, New York Fries, St-Hubert, Original Joe’s, State & Main, Elephant & Castle, The Burger’s Priest, The Pickle Barrel restaurants, 1909 Taverne Moderne, The Keg, Fresh, Rose Reisman Catering, and Marigolds & Onions brand names. As of December 29, 2019, the company operated 1,373 restaurants, which include 1,332 in Canada, as well as 41 located in the United States, Bahrain, China, India, Macao, Oman, Panama, Qatar, Saudi Arabia, and the United Arab Emirates; and 23 brands. It also provides call center services for corporate and franchised restaurants; and leases buildings and equipment to franchisees. 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 21:51
End of Day Share Price2020/07/14 00:00
Earnings2020/03/29
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.