Recipe Unlimited sales cut in half in Q2 as restaurants ordered closed

VAUGHAN, Ont. — Recipe Unlimited Corp. saw system sales fall more than 55 per cent in its most recent quarter as the COVID-19 pandemic prompted dining room closures across Canada.

The Vaughan, Ont.-based company says system sales in its second quarter totalled $389.8 million, down 55.3 per cent or $481.5 million from $871.3 million in the same quarter the previous year.

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The restaurant conglomerate says the decline came from government mandated restaurant closures during the quarter, but was partially offset by sales increases in its retail and catering segment, which was up 105.6 per cent to $14.8 million.

The company's net loss for the 13 weeks ending June 28 totalled $40.6 million or 72 cents per diluted share compared to a net profit of $16.6 million or 26 cents per diluted share in the second quarter the previous year.

Recipe says its second-quarter revenues were $140.4 million, down $171.5 million or 55 per cent from $311.9 million in the same quarter of 2019.

Adjusted net earnings for the quarter were $6.2 million or 11 cents per diluted share compared to $23.4 million or 37 cents per diluted share.

This report by The Canadian Press was first published Aug. 6, 2020.

Companies in this story: (TSX:RECP)

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