Recipe Unlimited system sales fall amid dining room closures and seating restrictions

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VAUGHAN, Ont. — Recipe Unlimited Corp. saw system sales fall more than 30 per cent in its most recent quarter as the pandemic continued to cause dining room closures and seating restrictions at its restaurant chains across Canada.

The Vaughan, Ont.-based company says system sales in its fourth quarter totalled $611.3 million, down 31.8 per cent from $895.8 in the same quarter the previous year

Frank Hennessey, CEO of the restaurant conglomerate, says Recipe Unlimited was impacted by mandated full closures or severely restricted capacity constraints due to COVID-19.

Still, the company, which operates brands like Swiss Chalet, Harvey’s, St-Hubert and The Keg, saw off-premise system sales for the 13 weeks ended Dec. 27, 2020 of $150.4 million, a 66.6 per cent increase compared to $90.3 million in the same period of 2019.

Recipe Unlimited says its fourth-quarter revenues were $210.9 million, down from $327 million in the same quarter of 2019.

Adjusted net earnings for the quarter were $16.1 million or 28 cents per diluted share, down from $44.8 million or 77 cents the year before.

Companies in this story: (TSX:RECP)