IRG.TO - Imvescor Restaurant Group

[Guest 50centdollars]

Anyone research IRG? I know FFH use to own shares a few yrs ago but sold out. Activist investor is trying to get management to pay a dividend. Stock looks cheap compared to peers..

 

http://finance.yahoo.com/news/crescendo-partners-sends-letter-board-154800417.html

[whatdadil9]

This little company has historically been viewed as an "also ran" mismanaged by an atlantic canada family. Over the last few years with help of activist investors the Company has a great new CEO from CARA who is turning the business around. In many ways, it is probably the best positioned franchise company in Canada -- it is comping positively and has virtually its entire franchise base signed up to renovate their stores which generates a huge return for the fanchisees /and franchisor thru SSS lift.

 

CARA has been pretty adamant about their desire to grow in Quebec. Their recent purchase of St. Hubert creates a pretty nice platform to do tuck-unders...Imvescor also has a large and growing retail food business that could be subtantially additive if Cara decides to in-source the manufacturing...

 

We estimate the cost synergies could be 5-10 mm before leveraging food purchasing/advertising, insourcing manufacturing, and any potential revenue synergies.

 

The sellsides numbers are pretty conservative relative to our base case and view this as a show me story. We think the team is showing us and Cara's recent purchase of St. Hubert of 12.5x EBITDA with substantially less synergies than IRG would provide highlights the strategic value implicit in the platform....

 

Curious to hear others thoughts....

[whatdadil9]

Earnings date moved up.... pretty bullish signal.

[Guest notorious546]

Earnings date moved up.... pretty bullish signal.

 

why?

[whatdadil9]

historically/statistically companies pre announce numbers when they are bad and they dont tell you.... why move up the earnings date unless the numbers are good or they have smthg good to say? makes no sense...

[buylowersellhigh]

MTY.TO buying IRG.TO

 

http://www.imvescor.ca/wp-content/uploads/2014/09/IRGI-Press-Release-MTY-Food-Group-to-combine-with-Imvescor-December-12-2017.pdf

[Cigarbutt]

More consolidation.

 

Not so long ago, Cara acquired the St-Hubert restaurant chain and MTY was apparently interested. It had been reported that what made the difference was not in terms of financial numbers but more in terms of a solid personal link between Mr. Léger, the owner of St-Hubert and Mr. Watsa. Then, I had thought that the multiple paid was a tad high but the chain was a household name, a strong brand and there was a potentially significant gain of scale related to St-Hubert manufacturing operations sold to retail.

 

It is said now that Cara was in the ranks of the potential acquirers of IRG. I have followed MTY for a long time (even before it became a market darling). Mr. Stanley Ma, the CEO,  is one of those above average owner-operators. However, I find that MTY is slowly moving away from its relative franchise (restaurant within malls) and becoming more of an undifferentiated commoditized restaurant operator. MTY is no longer on my watch list.