Recipe Unlimited Corporation

RECP-T

TSE:RECP

18.48
0.02 (0.11%)
Recipe Unlimited Corporation is a Canadian company that operates several restaurant chains including Harvey's, Swiss Chalet, Fionn MacCool's, Kelsey's, Milestones, East Side Mario's, Montana's and St-Hubert.
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Analysis and Opinions about RECP-T

Signal
Opinion
Expert
HOLD
HOLD
May 22, 2019
The old Cara operations. It has made some excellent acquisitions, including TheKeg restaurant chain. The problem is they hold a lot of assets in Alberta. The latest quarter was also impacted by the cold winter this year. He will continue to hold.
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The old Cara operations. It has made some excellent acquisitions, including TheKeg restaurant chain. The problem is they hold a lot of assets in Alberta. The latest quarter was also impacted by the cold winter this year. He will continue to hold.
PAST TOP PICK
PAST TOP PICK
November 8, 2018
(A Top Pick Nov 21/17, Up 13%) Swiss Chalet, St. Huber and The Keg. They brought in new management and made the two good acquisitions. They should report results any day now and he would stick with this one.
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(A Top Pick Nov 21/17, Up 13%) Swiss Chalet, St. Huber and The Keg. They brought in new management and made the two good acquisitions. They should report results any day now and he would stick with this one.
PAST TOP PICK
PAST TOP PICK
October 25, 2018

(A top pick October 25/17, up 10%) Name changed when they amalgamated with other restaurant brands. He likes this space. Consumer spending in this space is high. At this point, he would look at diversifying out of this and buying some other names that are down 15 or 20%.

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(A top pick October 25/17, up 10%) Name changed when they amalgamated with other restaurant brands. He likes this space. Consumer spending in this space is high. At this point, he would look at diversifying out of this and buying some other names that are down 15 or 20%.

PAST TOP PICK
PAST TOP PICK
September 25, 2018

(A Top Pick September 27, 2017. Up 22%). This was called Cara. It owns Swiss Chalet and is the largest restaurant chain in Canada. The company suffered after he bought it because of the downturn in the economy in Alberta. Restaurants are heavily dependent on growth in same-store sales, which suffer in a downturn. Recipe Unlimited countered this in three smart ways: (1) They bought St-Hubert in Quebec, which diversified their market and gave them a strong brand; (2) They bought the Keg, which moved them upscale with a very good growth profile; (3) They brought in a new CEO with a very good track record. The company is still Ontario-centric, but much less than it used to be.

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(A Top Pick September 27, 2017. Up 22%). This was called Cara. It owns Swiss Chalet and is the largest restaurant chain in Canada. The company suffered after he bought it because of the downturn in the economy in Alberta. Restaurants are heavily dependent on growth in same-store sales, which suffer in a downturn. Recipe Unlimited countered this in three smart ways: (1) They bought St-Hubert in Quebec, which diversified their market and gave them a strong brand; (2) They bought the Keg, which moved them upscale with a very good growth profile; (3) They brought in a new CEO with a very good track record. The company is still Ontario-centric, but much less than it used to be.

TOP PICK
TOP PICK
September 10, 2018

They are one of the largest restaurant operators in Canada. Their portfolio of brands is very hard to replicate. They have started to grow same store sales. They will continue to try to be acquisitive. (Analysts’ target: $32.61).

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They are one of the largest restaurant operators in Canada. Their portfolio of brands is very hard to replicate. They have started to grow same store sales. They will continue to try to be acquisitive. (Analysts’ target: $32.61).

PAST TOP PICK
PAST TOP PICK
August 9, 2018

(A Top Pick Oct 25/17, Up 13%) Shortly after he was on they did an acquisition of The Keg and that will work out well for them. He has taken some profits and now thinks there is better value out there. He would take profits.

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(A Top Pick Oct 25/17, Up 13%) Shortly after he was on they did an acquisition of The Keg and that will work out well for them. He has taken some profits and now thinks there is better value out there. He would take profits.

BUY
BUY
July 4, 2018

Formerly, Cara Operations. It has been a turnaround stock that faced headwinds with falling oil prices in Alberta. They have improved with a good acquisition in Quebec and recently purchased Hy’s Steak Houses across Canada. Same restaurant sales have been growing and they have invested in the ambience of the locations and he thinks that will attract patrons.

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Formerly, Cara Operations. It has been a turnaround stock that faced headwinds with falling oil prices in Alberta. They have improved with a good acquisition in Quebec and recently purchased Hy’s Steak Houses across Canada. Same restaurant sales have been growing and they have invested in the ambience of the locations and he thinks that will attract patrons.

BUY
BUY
April 19, 2018

Same store sales suffered when people weren't going out to restaurants in western Canada. They made some interesting acquisitions in Quebec and Ontario. They most recently purchased The Keg. He likes the stock here.

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Same store sales suffered when people weren't going out to restaurants in western Canada. They made some interesting acquisitions in Quebec and Ontario. They most recently purchased The Keg. He likes the stock here.

BUY
BUY
March 15, 2018

His second largest holding. They double down on it a few months ago. The country’s largest restaurant and casual dining chain. It was suffering because its exposure to Alberta mainly. They made a couple of very good acquisitions (most recently The Keg). They are reporting better to expected earnings and metrics and the stock responded accordingly but till a cheap stock.

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His second largest holding. They double down on it a few months ago. The country’s largest restaurant and casual dining chain. It was suffering because its exposure to Alberta mainly. They made a couple of very good acquisitions (most recently The Keg). They are reporting better to expected earnings and metrics and the stock responded accordingly but till a cheap stock.

PAST TOP PICK
PAST TOP PICK
February 16, 2018

(A Top Pick Feb. 10/17 Down 1%) The largest full service restaurant chain in Canada. Early in 2018 the stock rallied after an acquisition in Quebec. They have announced the acquisition of the Keg operations company. They have a large Alberta exposure, which is slowly improving.

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(A Top Pick Feb. 10/17 Down 1%) The largest full service restaurant chain in Canada. Early in 2018 the stock rallied after an acquisition in Quebec. They have announced the acquisition of the Keg operations company. They have a large Alberta exposure, which is slowly improving.

PAST TOP PICK
PAST TOP PICK
December 28, 2017

(A Top Pick Feb 10/17, Up 2%) It got hurt because same store sales had gone down. They have been refreshing some of their older restaurants. It is excellent value here.

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(A Top Pick Feb 10/17, Up 2%) It got hurt because same store sales had gone down. They have been refreshing some of their older restaurants. It is excellent value here.

PAST TOP PICK
PAST TOP PICK
December 15, 2017

(A Top Pick Dec 9/16. Up 3%.) This really hasn't come to fruition yet. He chose it for its discounted valuation. Trading at around 9X versus same restaurant peers that are trading around 15X that have growth. It has been impacted by minimum wage hikes. He is looking for 3% restaurant sales growth over 2018 from a rebound in Calgary and the strong Québec. A very good name to be owning.

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(A Top Pick Dec 9/16. Up 3%.) This really hasn't come to fruition yet. He chose it for its discounted valuation. Trading at around 9X versus same restaurant peers that are trading around 15X that have growth. It has been impacted by minimum wage hikes. He is looking for 3% restaurant sales growth over 2018 from a rebound in Calgary and the strong Québec. A very good name to be owning.

TOP PICK
TOP PICK
November 22, 2017

The largest restaurant chain in Canada, and have grown quite a bit by acquisition. The stock went public and it was a market darling until it got overpriced. Then with the downturn in Alberta, oil prices started to tumble and people stopped going, so same-store sales took a big hit. That is now starting to stabilize. They’ve made some acquisitions which have diversified them. Valuation is very reasonable. Dividend yield of 1.6%. (Analysts’ price target is $26.)

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The largest restaurant chain in Canada, and have grown quite a bit by acquisition. The stock went public and it was a market darling until it got overpriced. Then with the downturn in Alberta, oil prices started to tumble and people stopped going, so same-store sales took a big hit. That is now starting to stabilize. They’ve made some acquisitions which have diversified them. Valuation is very reasonable. Dividend yield of 1.6%. (Analysts’ price target is $26.)

TOP PICK
TOP PICK
October 25, 2017

A conglomerate of restaurants that are milestones. This was in a downtrend, but had some decent earnings. Announced an acquisition of Pickle Barrel restaurants in Ontario and Québec. It seems the franchise options work and make money, so he is looking for 15%-20% upside from current levels. (Analysts’ price target is $27.)

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A conglomerate of restaurants that are milestones. This was in a downtrend, but had some decent earnings. Announced an acquisition of Pickle Barrel restaurants in Ontario and Québec. It seems the franchise options work and make money, so he is looking for 15%-20% upside from current levels. (Analysts’ price target is $27.)

TOP PICK
TOP PICK
September 27, 2017

Has been suffering lately. It went from being overpriced to being hugely underpriced. Part of the reason is that they have a good set of their operations in Alberta, and the weakness in the energy patch has hurt sales. Recently they’ve suffered by negative same store sales, which apparently has now turned positive. They’ll be hurt by rising minimum wages in Alberta and Ontario. Dividend yield 1.7%. (Analysts’ price target is $27.)

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Has been suffering lately. It went from being overpriced to being hugely underpriced. Part of the reason is that they have a good set of their operations in Alberta, and the weakness in the energy patch has hurt sales. Recently they’ve suffered by negative same store sales, which apparently has now turned positive. They’ll be hurt by rising minimum wages in Alberta and Ontario. Dividend yield 1.7%. (Analysts’ price target is $27.)

COMMENT
COMMENT
September 26, 2017

Has been suffering because of the increase in minimum wage in Ontario. Thinks the increase is a great idea. If you take people who are earning less than $12 an hour, and all of a sudden up their wages by $3 an hour, they are going to spend the money for the most part because they need to. That in itself will create jobs.

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Has been suffering because of the increase in minimum wage in Ontario. Thinks the increase is a great idea. If you take people who are earning less than $12 an hour, and all of a sudden up their wages by $3 an hour, they are going to spend the money for the most part because they need to. That in itself will create jobs.

COMMENT
COMMENT
August 29, 2017

Looked at this a year ago, but couldn’t get excited about the name. He’d rather put his money in a name like Starbucks (SBUX-Q). The valuation is not cheap enough to get him excited.

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Looked at this a year ago, but couldn’t get excited about the name. He’d rather put his money in a name like Starbucks (SBUX-Q). The valuation is not cheap enough to get him excited.

PAST TOP PICK
PAST TOP PICK
August 18, 2017

(Top Pick Sept. 9/16, Down 22.60%) He is disappointed. They have a big exposure to Alberta and the impact from oil is going down. Same store sales are starting to stabilize. It is too cheap to see it here, but it has probably seen its bottom.

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(Top Pick Sept. 9/16, Down 22.60%) He is disappointed. They have a big exposure to Alberta and the impact from oil is going down. Same store sales are starting to stabilize. It is too cheap to see it here, but it has probably seen its bottom.

HOLD
HOLD
July 25, 2017

It has not been a good investment in the short term. Their Western Canada acquisition exacerbated their exposure to their Alberta and Saskatchewan markets. They are going to expand their St. Hubert and Swiss Chalet products in supermarkets.

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It has not been a good investment in the short term. Their Western Canada acquisition exacerbated their exposure to their Alberta and Saskatchewan markets. They are going to expand their St. Hubert and Swiss Chalet products in supermarkets.

PAST TOP PICK
PAST TOP PICK
May 1, 2017

(Top Pick May 2/16, Down 19%) It was a disappointment because their same store sales were pretty anemic. It had to do with the oil patch. Long term they are investing in their restaurants and turning them around. St. Hubert in Quebec was a good investment.

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(Top Pick May 2/16, Down 19%) It was a disappointment because their same store sales were pretty anemic. It had to do with the oil patch. Long term they are investing in their restaurants and turning them around. St. Hubert in Quebec was a good investment.

BUY
BUY
March 15, 2017

This has been a very interesting turnaround. They’ve done a great transition on costs, and have become better on marketing. There are some short-term challenges in terms of the economic environment, primarily in the West. It is very much a franchise model they are shifting towards that with many other banners. Generates solid cash flow. Not the cheapest stock, but you have to give management credit with what they have done. Reasonable value for what you are getting. Dividend yield of 1.5%.

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This has been a very interesting turnaround. They’ve done a great transition on costs, and have become better on marketing. There are some short-term challenges in terms of the economic environment, primarily in the West. It is very much a franchise model they are shifting towards that with many other banners. Generates solid cash flow. Not the cheapest stock, but you have to give management credit with what they have done. Reasonable value for what you are getting. Dividend yield of 1.5%.

TOP PICK
TOP PICK
February 10, 2017

This has been a disappointing stock since he bought it. The largest restaurant company in Canada. It grows by acquisition and franchising’s operations. Alberta has been hurting the stock. Just made an acquisition of a large Québec operation. Trades at a discount to US counterparts. Dividend yield of 1.57%. (Analysts’ price target is $30.86.)

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This has been a disappointing stock since he bought it. The largest restaurant company in Canada. It grows by acquisition and franchising’s operations. Alberta has been hurting the stock. Just made an acquisition of a large Québec operation. Trades at a discount to US counterparts. Dividend yield of 1.57%. (Analysts’ price target is $30.86.)

COMMENT
COMMENT
January 5, 2017

This seems to be in the mode of buying more. You will probably get a dividend increase over time, but they are on the acquisition trail, so they are on the growth mode.

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This seems to be in the mode of buying more. You will probably get a dividend increase over time, but they are on the acquisition trail, so they are on the growth mode.

BUY
BUY
December 28, 2016

This has not been performing in this market, and he bought some just recently. Thinks the outlook is quite good. Believes it is the biggest restaurant operator in Canada. Have significant operations in Alberta which has been hurt by the fall in energy prices, as well as Fort McMurray. They made a significant acquisition this year of the St Hubert operations in Québec, which will pay off in spades in the long run.

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This has not been performing in this market, and he bought some just recently. Thinks the outlook is quite good. Believes it is the biggest restaurant operator in Canada. Have significant operations in Alberta which has been hurt by the fall in energy prices, as well as Fort McMurray. They made a significant acquisition this year of the St Hubert operations in Québec, which will pay off in spades in the long run.

TOP PICK
TOP PICK
December 9, 2016

2016 was definitely a step-back year. They had negative same store sales growth. There was weakness in Alberta. However, it is trading at a substantial discount now of 17X, versus its highly-franchised peers of around 25 X. He is modelling 17% EPS compounded annually over the next couple of years, from a combination of new store openings, innovations and digital marketing, as well as integrating their St Hubert acquisition. Dividend yield of 1.61%. (Analysts’ price target is $31.63.)

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2016 was definitely a step-back year. They had negative same store sales growth. There was weakness in Alberta. However, it is trading at a substantial discount now of 17X, versus its highly-franchised peers of around 25 X. He is modelling 17% EPS compounded annually over the next couple of years, from a combination of new store openings, innovations and digital marketing, as well as integrating their St Hubert acquisition. Dividend yield of 1.61%. (Analysts’ price target is $31.63.)

DON'T BUY
DON'T BUY
November 3, 2016

Looked at this when it fell back close to its IPO level, but he would never bet against Fairfax which owns a significant stake in the company. They are doing all the right things. They are trying to increase their network. Canada is just not in a growth mode right now, and they have too many stores out West. They have wonderful brands. The valuation is not cheap enough for him to get excited.

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Looked at this when it fell back close to its IPO level, but he would never bet against Fairfax which owns a significant stake in the company. They are doing all the right things. They are trying to increase their network. Canada is just not in a growth mode right now, and they have too many stores out West. They have wonderful brands. The valuation is not cheap enough for him to get excited.

TOP PICK
TOP PICK
September 9, 2016

He likes the restaurant space. This is kind of unique in that it, along with MTY Food Group (MTY-T), is an acquirer of other brands. MTY is in the food court space mostly while this one is mostly in quick serve and self-serve dining. Very good management. He expects the dividend to start increasing. Good valuation and good growth opportunities. Dividend yield of 1.35%.

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He likes the restaurant space. This is kind of unique in that it, along with MTY Food Group (MTY-T), is an acquirer of other brands. MTY is in the food court space mostly while this one is mostly in quick serve and self-serve dining. Very good management. He expects the dividend to start increasing. Good valuation and good growth opportunities. Dividend yield of 1.35%.

TOP PICK
TOP PICK
May 2, 2016

Brand new for him. He likes it because he wanted to increase his presence in Canada, but not in resources. It is the Canadian consolidator in the restaurant business. The dual class share structure is their only drawback.

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Brand new for him. He likes it because he wanted to increase his presence in Canada, but not in resources. It is the Canadian consolidator in the restaurant business. The dual class share structure is their only drawback.

PAST TOP PICK
PAST TOP PICK
April 28, 2016

(Top Pick May 11/15, Up 8.27%) Just acquired St. Hubert. It is the Swiss Chalet type of eating in Quebec. Management is brilliant. He thinks it will steadily rise from here. It is not winning big, however.

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(Top Pick May 11/15, Up 8.27%) Just acquired St. Hubert. It is the Swiss Chalet type of eating in Quebec. Management is brilliant. He thinks it will steadily rise from here. It is not winning big, however.

COMMENT
COMMENT
April 18, 2016

Chart shows a big rounding base from last November. The first thing that will be seen is some resistance coming in at $35. Some of the indicators on a short term basis are extremely high. There is a $55 technical target.

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Chart shows a big rounding base from last November. The first thing that will be seen is some resistance coming in at $35. Some of the indicators on a short term basis are extremely high. There is a $55 technical target.

COMMENT
COMMENT
April 5, 2016

Made a big deal when they took out St. Hubert in Québec. They are going to be able to leverage that to improve costs and margins. Thinks they are going to do more deals. He doesn’t own this because he is a little more focused on yields.

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Made a big deal when they took out St. Hubert in Québec. They are going to be able to leverage that to improve costs and margins. Thinks they are going to do more deals. He doesn’t own this because he is a little more focused on yields.

TOP PICK
TOP PICK
May 11, 2015

This holds these famous brands of Swiss Chalet, Harvey’s, etc. and you have the Fairfax and the Phelan family backing. Fabulous management. Priced at only 11 or 12 times earnings and it could be much more. It will be making interesting acquisitions.

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This holds these famous brands of Swiss Chalet, Harvey’s, etc. and you have the Fairfax and the Phelan family backing. Fabulous management. Priced at only 11 or 12 times earnings and it could be much more. It will be making interesting acquisitions.

DON'T BUY
DON'T BUY
May 4, 2015

He thinks the stock is still a little expensive. The new issue did very well. Came out at about $23 2-3 weeks ago. He thinks part of that was just a scarcity factor of non-resource Canadian companies.

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He thinks the stock is still a little expensive. The new issue did very well. Came out at about $23 2-3 weeks ago. He thinks part of that was just a scarcity factor of non-resource Canadian companies.

BUY WEAKNESS
BUY WEAKNESS
April 30, 2015

He would wait on the stock for an entry point because it was hyped up and over subscribed at the IPO. Be patient and buy it when it gets dipped. A solid business model. They have been doing a good job over the last 10 years. He has YUM-N.

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He would wait on the stock for an entry point because it was hyped up and over subscribed at the IPO. Be patient and buy it when it gets dipped. A solid business model. They have been doing a good job over the last 10 years. He has YUM-N.

DON'T BUY
DON'T BUY
April 27, 2015

The valuation is extremely expensive. He feels this whole sector is very saturated, competitive and expensive.

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The valuation is extremely expensive. He feels this whole sector is very saturated, competitive and expensive.

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