A Recipe for the Future……

"Cara has undergone transformational growth since 2013,” said CEO Bill Gregson.   “As Cara heads into its next generation of growth, the company's name will be changing to recognize and better reflect what the company has become since Fairfax invested in the company in 2013, including: the company's IPO in 2015, the acquisition of St-Hubert, Original Joe's, and New York Fries; and the recent merger with The Keg.  The company will be changing its name to Recipe Unlimited Corporation and will be traded under the new stock symbol "RECP".    The name Recipe was selected for both its connection to the many ways we proudly serve food and to signify the broader possibilities of what can and will be created through our processes and methodologies that reflect our values and the strength of our brands, franchisees, associates and our company.”  Gregson added that Frank Hennessey was joining Cara as CEO and Gregson take on the role of Executive Chairman of the Board.  Earlier in May, Cara Operations Ltd. announced positive same restaurant sales growth of 2.1 percent in the first quarter of 2018, ending in early April. It is the company’s third consecutive quarter of positive SRS results.  In the first quarter, total system sales grew $96.8-million(Cdn), or 14.7 percent to $755.9-million(Cdn).  The increase in system sales is primarily related same restaurant sales increases, the additions of Burger's Priest in June 2017, Pickle Barrel in December 2017, and The Keg in February 2018, partially offset by the first quarter calendar shift where the sales period from December 26, 2016 to January 1, 2017 were included in Q1 2017 but the same holiday week, typically a higher sales week, is not in our fiscal 2018 first quarter which started on January 1, 2018.   Management will continue to pursue the sale of certain corporate restaurants in its franchise banners to franchisees and will pursue the sale of its share in joint venture locations to the company's joint venture partners to convert joint venture locations to franchise to improve the corporate-franchise portfolio mix.  During the 13 weeks ended April 1, 2018, one corporate restaurant was sold and re-franchised.  Cara franchises and/or operates some of the most recognized brands in the country including Swiss Chalet, Harvey's, St-Hubert, Milestones, Montana's, Kelsey's, East Side Mario's, New York Fries, Prime Pubs, Bier Markt, Landing, Original Joe's, State & Main, Elephant & Castle, Burger's Priest, Pickle Barrel, Taverne Moderne and The Keg.  At April 1, 2018, Cara had 1382 restaurants, 1321 of which were located in Canada and the remaining 61 locations were located internationally. About 85 percent of Cara's restaurants are operated by franchisees and joint venture partners.

 

Cara Operations Ltd/Recipe Unlimited Corp., 199 Four Valley Dr., Vaughan, Ontario L4K 0B8 (905/760-2244 www.cara.com)