Cara Operations Ltd. (TSX:CARA) is a Vaughan-based company that owns and operates restaurant franchises in Canada. The company released its 2017 fourth quarter and full-year results after trading closed on March 9. Cara stock jumped 10% in early afternoon trading on March 12 in response.
In the fourth quarter Cara announced that it would merge with the Keg Steakhouse + Bar restaurant. Cara estimates that the Keg will contribute over $600 million in annual system sales and $23.5 million of annual operating EBITDA to its yearly results. Cara saw same restaurant sales grow 2.5% in the fourth quarter as its renovation program, menu changes, and marketing paid off. It also reported strong sales in Quebec and Alberta in the final quarter of 2017.
For the full-year system sales grew 36.1% to $2.77 billion as the company saw a big boost from the acquisitions of St. Hubert and Original Joe’s. Adjusted net earnings climbed to $117.1 million compared to $97 million in 2016. Operating EBITDA grew to $191 million.
In its 2018 outlook Cara has plans to enhance its partnerships with Cineplex Inc. SCENE and Canadian Automobile Association (CAA) to drive new business from the pool of 15 million users of those services. Cara also hopes that its new analytic system, which integrates customer satisfaction, sales data, and a number of other data, will provide a foundation for improvement for its franchises.
Cara also hiked its quarterly dividend by 5% to $0.1068 per share.
