Recipe Unlimited Corporation operates as a multi-branded restaurant, catering, and food manufacturing company that franchises and operates restaurant brands.
The last earnings update was 24 days ago.
Discounted Cash Flow Calculation for DB:305 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
DB:305 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Recipe Unlimited's share price is below the future cash flow value, and at a moderate discount (> 20%).
Recipe Unlimited's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Recipe Unlimited's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if Recipe Unlimited is high growth as no earnings estimate data is available.
Recipe Unlimited's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Recipe Unlimited's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Recipe Unlimited's finances.
The net worth of a company is the difference between its assets and liabilities.
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.
This treemap shows a more detailed breakdown of
Recipe Unlimited's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.5x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
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 September 08, 2014. Mr. Hennessey served as Vice-President of Purchasing at Cara Operations Limited. Mr. Hennessey is a restaurant professional with over 31 years of experience in both franchise and corporate environments in both Canada and the United States. Until Cara's recent sale, he served as the President and Chief Executive Officer of Bento Sushi from February 2011 to June 2014, with over 400 sushi bars in both Canada and the United States. He spent 11 years at Cara Operations Limited in different roles, including President of Harvey's Restaurants and Senior Vice-President of Guest Experience, where he worked for 11 years at Darden Restaurants. Mr. Hennessey has a wide range of experience with restaurant operations, product development, food manufacturing, retailing to grocery chains, marketing and supply chain management. He has been a Non-Independent Director of Imvescor Restaurant Group Inc. since September 08, 2014. Mr. Hennessey holds an undergraduate degree from Western University and a Master of Business Administration from the Rotman School of Management at the University of Toronto.
Insufficient data for Frank to compare compensation growth.
Frank's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Recipe Unlimited management team is about average.
Chief Executive Officer
Chief Financial Officer
VP, General Counsel & Secretary
Chief People Officer
Senior Vice President of Casual Dining Division
Senior Vice President of Landing & Bier Markt
President of Milestones Restaurants Inc
Chief Development Officer & President of Family Dining Division
President of FranWorks
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Recipe Unlimited board of directors is about average.
Board of Directors
Chairman of the Board
Chairman Emeritus of Kelsey’s International Inc
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
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.
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