Cara shopping for new restaurants

TORONTO Cara Operations Ltd., having scooped up some of the biggest restaurant chains in the country during the past three years, is on the lookout for more.

“Our balance sheet is much stronger and we are well positioned to pursue strategic acquisitions,” company chief executive Bill Gregson said Friday on a conference call to discuss fourthquarter results.

Cara, operator of 1,237 restaurants across the country under banners such as Swiss Chalet, Harvey’s, Milestones and New York Fries, reported a 39 per cent jump in overall system sales to $641 million in the quarter thanks to its acquisition of the St. Hubert chicken chain last September. That was up from $461 million in the same period a year ago.

However same-restaurant sales, a figure indicative of overall industry performance that strips out the extra sales from new restaurants, fell 2.8 per cent for the period ended Dec. 25, and were down 1.6 per cent for the year.

Net earnings were $19.7 million, or 32 cents per share, compared with earnings of $58.3 million ($1.11) in the fourth quarter of last year.

Cara has been aiming to acquire strong brands while lowering its overall cost base. Since Cara merged with rival Prime Restaurants in 2013, it has closed underperforming restaurants and acquired new chains.

“We have completely transformed our business in three years,” Gregson said, noting Cara’s restaurant count is up 48 per cent from 2013 and revenue has climbed to $2.04 billion from $1.37 billion.