VAUGHAN, Ont. — Recipe Unlimited Corp. says it will suspend its quarterly dividend for the 2020 financial year amid mass restaurant closures due to the COVID-19 pandemic.
The restaurant conglomerate that includes Swiss Chalet and Kelsey’s says the temporary suspension includes the first-quarter dividend scheduled to be paid June 15.
In early March, the company raised its dividend 5 per cent to 11.77 cents per share.
The Vaughan, Ont.-based company says it now feels it is prudent to conserve cash flow until it can better understand the business impacts of the coronavirus shutdown.
The company released its first-quarter financial results after markets closed Thursday and said 42 per cent of its Canadian restaurants were completely closed mid-March with the remainder partially open for take out and delivery.
It says it saw a net loss of $41.2 million for the quarter ended March 29 with $71.5 million as a result of COVID-19 — that’s down from net earnings of $22.7 in the same period the previous year.
This report by The Canadian Press was first published May 8, 2020.
Companies in this story: (TSX:RECP)
The Canadian Press