Recipe Unlimited (STAR)
RECP - TSX
Well, this calls for a quarter-chicken dinner. Shares of Recipe Unlimited – owner of Swiss Chalet, Harvey’s, The Keg, Montana’s and more than a dozen other restaurant chains – surged after major shareholder Fairfax Financial Holdings proposed taking the company private for about $1.2-billion, or $20.73 a share, in cash. That’s more than a 50-per-cent premium to Recipe’s share price before the offer was announced. Sadly, it’s still lower than the company’s initial public offering price of $23 in 2015. On second thought, let’s make it a dinner roll with dipping sauce.
BBQ Holdings (STAR)
BBQ - Nasdaq
In the old days, if you were craving some barbecue, you had to hunt down an animal, find some flint, start a fire and then fight off invaders attracted by the delicious aroma of your cooking. Nowadays, you can tap your credit card at Famous Dave’s and order all the ribs, brisket and wings your stomach can handle. Montreal-based MTY Group was hankering for barbecue this week as the restaurant franchisor gobbled up U.S.-based BBQ Holdings, parent of Famous Dave’s and other chains, for US$17.25 a share, or about US$200-million, including debt. Investors are licking their chops.
Pet Valu Holdings (STAR)
PET - TSX
Here’s one way to fight back against the high cost of pet ownership: Invest in Pet Valu Holdings. Shares of the pet food and accessories retailer extended their recent gains after same-store sales jumped 21.2 per cent in the second quarter, driven by a sharp rise in transactions and a modest increase in the average purchase per customer. With consumers continuing to shower their pandemic pets with toys and treats, Pet Valu also raised its full-year sales outlook, which includes the addition of 35 to 45 new stores. Who’s a good stock?
Sonos (DOG)
SONO - Nasdaq
It’s well known that listening to music at high volumes can damage your hearing. But did you know that investing in a speaker maker can damage your portfolio? Shares of Sonos collapsed after the maker of wireless speakers and home sound systems posted an unexpected drop in quarterly revenue and slashed its full-year sales forecast, citing soft demand for electronic items ahead of the crucial holiday season. With inflation-squeezed consumers choosing to spend more of their money on travel and leisure activities now that COVID-19 restrictions have been lifted, the results were anything but music to the ears of Sonos investors.
CarGurus (DOG)
CARG - Nasdaq
Business quiz! Shares of CarGurus fell after the online platform for buying and selling vehicles: a) had its systems compromised by North Korean hackers, who diverted a shipment of late-model SUVs to Pyongyang; b) received a scathing online review from a customer who said his “experience was ruined” because the floor mats in his preowned Ford F-150 “clearly had not been vacuumed thoroughly”; c) issued third-quarter sales and earnings guidance below analysts’ expectations, as inflation, rising interest rates and recession fears crimped consumer demand for vehicles. Answer: c.
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John Heinzl