Recipe Unlimited reports solid operating EBITDA results for Q3 2019

Canada’s full-service restaurant company Recipe Unlimited has reported that operating EBITDA was $49.5m for the third-quarter of 2019 and $155.5m year to date.

During the quarter, the company’s free cash flow was $36.1m and $111.6m year to date.

System Sales for the quarter decreased $10.7m to $869.1m compared to $879.8m in 2018, showing a fall of 1.2%.

The decrease is primarily related to Same Restaurant Sales (SRS) decreases and restaurants closures offset by the opening of new restaurants and growth in retail and catering sales.

Year to date, System Sales increased $81.1m to $2,591.1m, which is primarily related to the addition of The Keg in February 2018 and increases in the retail and catering segment from the Swiss Chalet branded products.

Recipe Unlimited CEO Frank Hennessey said: “Recipe and the full service industry, as a whole, continue to face headwinds due to more caution in spending being exhibited by consumers; more restaurant seats in the market, and continued staffing and wage pressure due to a four decade low in the unemployment rate.

“While we are pleased with the positive progress made on all our guest satisfaction metrics, we are continuing to create ways to offer a more compelling and relevant consumer proposition for both our dine-in and our fast growing delivery sector.”

SRS growth witnessed a decrease of 3.1% for the third quarter and 2.2% year to date compared to the same 13 and 39 weeks in 2018.

Operating EBITDA for the quarter decreased to $49.5m compared to $51.2m in the previous year, a decrease of $1.7m for the quarter.

During the quarter, net earnings stood at $6.7m and for the year at $45.8m.