Recipe Unlimited Corporation temporarily suspends quarterly dividend

VAUGHAN, ON, May 7, 2020 /CNW/ - Recipe Unlimited Corporation (TSX: RECP.TO) ("Recipe" or the "Company") announces that it is temporarily suspending quarterly dividend payments for the balance of 2020, including the first quarter dividend scheduled to be paid on June 15, 2020.

On March 5, 2020, Recipe increased its quarterly dividend by 5% to 11.77 cents per share.  However, since the release of Q4 2019 results on March 5, 2020 and the subsequent government mandated COVID-19 shutdown of its restaurant dining rooms, the Company feels that it is prudent to suspend dividends and conserve cash flow until the medium and long term business impacts of the COVID-19 shutdown are better understood.

Quarterly dividend payments and dividend growth are important tools in the Company's capital allocation strategy that help increase shareholder returns.  Management will continue to monitor the business impacts of the COVID-19 shutdown and will assess the Company's dividend policy in conjunction with the release of quarterly financial results through the balance of  2020.

About Recipe Unlimited Corporation

Founded in 1883, RECIPE Unlimited Corporation is Canada's oldest and largest full-service restaurant company. The Company franchises and/or operates some of the most recognized brands in the country including Swiss Chalet, Harvey's, St-Hubert, The Keg, Milestones, Montana's, Kelsey's, East Side Mario's, New York Fries, Prime Pubs, Bier Markt, Landing, Original Joe's, State & Main, Elephant & Castle, The Burger's Priest, The Pickle Barrel, Marigolds & Onions, and 1909 Taverne Moderne. 

RECIPE's iconic brands have established the organization as a nationally recognized franchisor of choice. As at March 29, 2020, Recipe had 24 brands and 1,363 restaurants, 85% of which are operated by franchisees and joint venture partners.  RECIPE's shares trade on the Toronto Stock Exchange under the ticker symbol RECP. More information about the Company is available at www.recipeunlimited.com.

SOURCE Recipe Unlimited Corp.

For further information: Investor Relations: Recipe Unlimited Corporation, Ken Grondin, (905) 760-2244, Chief Financial Officer, Email: kgrondin@recipeunlimited.com or investorrelations@recipeunlimted.com