VAUGHAN, Ont. — Cara Operations Limited has announced results for the third quarter ending September 25, 2016 along with a new TSX stock-trading symbol. Cara will now trade under its new TSX stock symbol “CARA” (previously “CAO”).
“We had a solid third quarter and are satisfied with our year-to-date results. Our performance in the third quarter marks the second consecutive quarter where our EBITDA contribution rate of 7.4 per cent is within our long-term target range of seven per cent to eight per cent,” says Bill Gregson, Cara’s CEO. “Net new restaurant openings and the acquisitions of New York Fries and St-Hubert drove total system-sales growth of $61.5 million, or 14 per cent in the quarter and growth of $96 million or 7.4 per cent, year-to-date.”
Cara also reported negative same-restaurant-sales (SRS) growth in Q3 2016, down 2.3 per cent from the previous year, resulting in a year-to-date decrease of 1.2 per cent. SRS for the quarter was impacted by continued challenges in the western provinces and uneven performance in certain restaurant banners.
During the month of September, Cara completed its acquisition of Groupe St-Hubert Inc. The company also announced it had entered into a transaction to acquire a majority ownership interest in Original Joe’s Franchise Group Inc. for $93 million, which is expected to close by the end of 2016. Together, these two transactions are expected to result in a total Cara system-sales increase to approximately $2.7 billion and operating EBITDA is expected to increase to approximately $178 million on an annualized basis.