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Recipe Unlimited temporarily suspends dividend payments for 2020 amid COVID-19

Last Updated May 8, 2020 at 8:50 am PDT

A photograph of The Keg Steakhouse and Bar is shown at Sherway Gardens mall in Toronto on Tuesday, January 23, 2018. Recipe Unlimited Corp. says it will suspend paying its quarterly dividend for the 2020 financial year amid mass restaurant closures due to the COVID-19 pandemic. THE CANADIAN PRESS/Nathan Denette

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