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Building Value At Cara; Second Quarter Earnings Increase By 43%.


Business Editors

TORONTO--(BUSINESS WIRE)--Oct. 25, 2000

Cara Operations Cara Operations Limited is a Canadian company that provides catering services to airlines and operates several restaurant and coffee shop chains including: Harvey's, Swiss Chalet, Kelsey's , Milestones and Montana's. The company is based across from Lester B.  Limited ("Cara") (TSE See Tokyo Stock Exchange.

TSE

1. See Tokyo Stock Exchange (TSE).

2. See Toronto Stock Exchange (TSE).
:CAO.)(TSE:CAO.A.), Canada's leading integrated foodservices company, is pleased to announce its operating results for the twelve week period ended September September: see month.  17, 2000, which constitutes Cara's second fiscal quarter, (the "Second Quarter" or the "Quarter").

"The strong results achieved by Cara in the Second Quarter are a reflection of continuing growth and improved operating performances from both Cara's Restaurant and Foodservices Segments," commented Gabe Tsampalieros, Cara's President and Chief Executive Officer.

In the Quarter, system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly.  and gross revenues both increased by 12% to $388 million and $271 million respectively. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
:EBITDA = Operating Revenue – Operating Expenses + Other Revenue
 ("EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ") increased by 33% to $32 million. Excluding unusual items, net earnings increased by 43% to $11.4 million and earnings per share ("EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ") increased by 44% to 12.3 cents per share Cents per share

The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned.
, the fifth consecutive quarterly year-over-year growth in earnings and the largest single quarterly earnings in Cara's 32 year history as a public corporation. For the year to date, system sales and gross revenues increased by over 19% to $767 million and $543 million respectively. EBITDA increased by 34% to $59 million and net earnings and EPS ("before unusual items") increased by 36% and 38% respectively to $19.7 million and 21.2 cents respectively.

All of Cara's core businesses posted year-over-year growth. Cara's Restaurant Segment posted system sales growth of almost 14%. The growth was driven in part by new unit growth at Kelsey's and Montana's, same restaurant sales growth of in excess of 4% at both Swiss Chalet
This article is about the restaurant chain; for the Alpine building see Chalet.


Swiss Chalet is a chain of Canadian family restaurants originally founded in 1954 in Toronto, Ontario.
 and Harvey's This article is about the Canadian fast food chain. For other uses, see Harvey's (disambiguation).
Harvey's is a fast food restaurant chain that operates in Canada, with locations concentrated in southern and eastern Ontario, southern Quebec, the Maritimes, and urban
 and strong sales increases at Air Terminal Restaurants. The Foodservices Segment also had an excellent Quarter, reporting sales growth of over 9% as well as improvement in margins and profitability.

"We are extremely pleased with our Company's operating results and overall performance for the Quarter and in particular with the underlying growth momentum that continues to take place at Cara. The results are evidence that our efforts to achieve positions of leadership and build sustainable profitable growth in all our businesses are beginning to pay off, and that we are indeed continuing to build value at Cara. We anticipate that the second half of the year will continue to show solid growth in sales and earnings, albeit not at the rates experienced to-date. We continue to see fiscal 2001 as a year of strong profitable growth. I would like to thank all our teammates for their continued efforts and contributions to our Company's on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis"
ongoing

current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position"
 success," added Mr. Tsampalieros.

The Second Quarter for both fiscal 2001 and fiscal 2000 included certain unusual items related exclusively to Cara's investment in The Second Cup Ltd. ("Second Cup") that adversely affected Cara's net earnings. Allowing for these unusual items, net earnings for the Second Quarter were $9.8 million or 10.6 cents per share, up significantly from earnings of $1.6 million (1.7 cents per share) on a comparable basis for the quarter a year ago. The adjustment to this year's Second Quarter earnings related to the write down in the value of shares held by Second Cup in Diedrich Coffee Diedrich Coffee is a coffee company based in Irvine, CA. Its first coffee house in Orange County, CA was opened in 1983. It owns the American mall-based stores for Gloria Jean's Coffees.  Inc. ("Diedrich's"), which shares were received by Second Cup as part payment for the sale of its U.S. based Coffee People business to Diedrich's last year. The write-down Write-Down

Reducing the book value of an asset because it is overvalued compared to the market value.

Notes:
This is usually reflected in the company's income statement as an expense, thereby reducing net income.
 which totaled $4.1 million after-tax af·ter-tax also af·ter·tax
adj.
Relating to or being that which remains after payment, especially of income taxes: after-tax profits. 
 reduced Cara's reported net earnings in the second quarter by $1.6 million (1.7 cents per share). In fiscal 2000, Second Quarter earnings included Cara's proportionate pro·por·tion·ate  
adj.
Being in due proportion; proportional.

tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates
To make proportionate.
 share of the non-cash $16.2 million after-tax loss reported by The Second Cup Ltd., relating to relating to relate prepconcernant

relating to relate prepbezüglich +gen, mit Bezug auf +acc 
 that company's planned strategic divestments including that of its aforementioned a·fore·men·tioned  
adj.
Mentioned previously.

n.
The one or ones mentioned previously.


aforementioned
Adjective

mentioned before

Adj. 1.
 U.S. operations. Cara's share of that loss reduced reported net earnings in last year's Second Quarter by $6.4 million (6.8 cents per share).

Corporate Development

Cara is pleased to announce the appointment of Mr. Don M. Robinson to its Board of Director's effective October October: see month.  24, 2000. Mr. Robinson joins other non-management directors William Corbett This article is about the American poet. For the English composer, see William Corbett (composer).

William Corbett ("Bill") (b. 1942) is an American poet, essayist, editor, and educator.
, Chairman, the New Providence New Providence, city, United States
New Providence, borough (1990 pop. 11,439), Union co., NE N.J.; settled c.1720, set off and inc. 1899. It is largely residential but has some light industry. Roses and fruit are grown there commercially.
 Development Company Limited; William William, crown prince of Germany
William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack
 Farlinger, Chairman, Ontario Power Generation Ontario Power Generation (OPG) is a public company whose shares are wholly owned by the Government of Ontario. It is responsible for approximately 70% of the electricity generation in the province of Ontario, Canada [1].  Inc.; Robert Robert, Henry Martyn 1837-1923.

American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876).

Noun 1.
 W. Martin, Corporate Director; Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1].  Steck, President, St. Andrews Noun 1. Andrews - United States naturalist who contributed to paleontology and geology (1884-1960)
Roy Chapman Andrews
 Financial Corporation and former CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , BMO Nesbitt Burns This article or section is written like an .
Please help [ rewrite this article] from a neutral point of view.
Mark blatant advertising for , using .
; Beverly Beverly, city (1990 pop. 38,195), Essex co., NE Mass., on Massachusetts Bay; inc. as a city 1894. Its chief manufactures are electronic and scientific equipment, consumer goods, and chemicals.  Topping, President & CEO, Indelible Inc.; and John H. Tory Tory (tô`rē), English political party. The term was originally applied to outlaws in Ireland and was adopted as a derogatory name for supporters of the duke of York (later James II) at the time (c. , President & CEO, Rogers Cable Rogers Cable Inc., a subsidiary of Rogers Communications Inc., is Canada's largest cable television service provider with about 2.25 million television customers, and over 930,000 Internet subscribers, in Southern Ontario, New Brunswick and Newfoundland and Labrador.  Inc. Mr. Robinson has significant brand management and marketing experience. He began his career with Nabisco Brands and spent the past 18 years with Mars Mars, in Roman religion and mythology
Mars, in Roman religion and mythology, god of war. In early Roman times he was a god of agriculture, but in later religion (when he was identified with the Greek Ares) he was primarily associated with war.
 Inc. He was President for Mars Inc. in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies.  and President of the Mars Petcare business in Asia Pacific prior to returning to Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of  in 1998. Since that time, he has been President and CEO of Effem Effem, Incorporated is the Canadian division of Mars, Incorporated a privately held multi-national company and a world leader in food, pet care products and confectionery products. The name is derived from the vocalisation of the initials of its founder, Frank Mars.  Inc. (the owner of Mars). Don is the current Chairman of the Board of the Confectionery confectionery, delicacies or sweetmeats that have sugar as a principal ingredient, combined with coloring matter and flavoring and often with fruit or nuts. In the United States it is usually called candy, in Great Britain, sweets or boiled sweets.  Manufacturers Association of Canada and he is an Executive Director of the FCPMC FCPMC Food and Consumer Products Manufacturers of Canada (Fabricants des Produits Alimentaires et de Consommation du Canada) .

With annual sales of in excess of $1.5 billion, Cara Operations Limited is one of Canada's leading foodservice The foodservice (or food service) industry (US English; catering industry in British English) encompasses those places, institutions, and companies responsible for any meal eaten away from home.  companies, providing employment for more than 28,000 Canadians This is a list of Canadians. Architects
  • Cardinal, Douglas (1934-)
  • Cormier, Ernest (1885-1980)
  • Erickson, Arthur (1924-)
  • Gaboury, Étienne (1930-)
  • Gehry, Frank (1929-)
  • Hanganu, Dan (1946-)
  • Irwin, Stephen (c. 1944-)
  • James J.
 in its owned and franchised operations. Cara's core businesses include Harvey's, Swiss Chalet, Cara Air Terminal Restaurants, Cara Airport Services, Beaver beaver, either of two large aquatic rodents, Castor fiber and Castor canadensis, known for their engineering feats. They were once widespread in N and central Eurasia except E Siberia, and in North America from the arctic tree line to the S United  Foods, Cara Health Services health services Managed care The benefits covered under a health contract , and Summit Food Service Distributors. Cara has a 61% ownership of Kelsey's International Inc. Kelsey's operates more than 120 restaurants including Kelsey's Neighbourhood Bar & Grill Grill may refer to:

In food:
  • Grill (cooking), a device or surface used for cooking food, usually fueled by gas or charcoal.
  • Grilling, a form of cooking that involves direct heat.
  • A restaurant that serves grilled food, such as a "bar and grill".
, Montana's Cookhouse Montana's Cookhouse is a Canadian restaurant headquartered in Mississauga, Ontario. There are restaurants located in Canada from coast to coast in addition to US locations in Michigan and New York State.  Saloons and [as a franchisee] Outback Steakhouses Outback Steakhouse is a casual dining American restaurant chain based in Tampa, Florida with over 900 locations in 23 countries throughout North and South America, Europe, Asia, and Australia. . Cara is also the largest shareholder (39%) of The Second Cup Ltd., Canada's leader in the specialty A contract under seal.

A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt.
 coffee retail market and the largest shareholder (38%) of The Spectra Group of Great Restaurants, a western-Canadian-based multi-concept restaurant operator, whose popular owned brands include the upscale casual chain of Milestones restaurants and the Bread Garden bakery/cafe concept. The shares of Cara, Second Cup and Spectra are listed on The Toronto Stock Exchange Toronto Stock Exchange (TSE)

Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options.
 under the symbols, CAO - CAO.A, SKL SKL Conservative Peasants Party (Poland)
SKL State Key Laboratory
SKL Simple Key Loader
SKL Svenska Kriminaltekniska Laboratoriet (Swedish National Criminal Forensics Laboratory) 
 and SPA Spa, commune (1991 pop. 10,140), Liège prov., E Belgium, in the Ardennes. Its therapeutic mineral springs and baths, frequented since the 16th cent., made it an internationally fashionable watering place.  - SPA.A respectively.


                       CONSOLIDATED INFORMATION
                           ------------------------
[In
thousands  2nd Quarter  2nd Quarter        24 Weeks   24 Weeks
of            ended       ended      %      ended      ended       %
dollars        Sept       Sept    Variance   Sept      Sept   Variance
except        17/00       12/99             17/00      12/99
for share
data ]
----------------------------------------------------------------------
System Sales
[Note 1]     $387,955   $346,330    12.0   $767,133   $642,780    19.3
Gross Revenue$271,297   $242,647    11.8   $543,114   $454,283    19.6
EBITDA
[Note 2]       31,738     23,874    32.9     59,329     44,180    34.3
EBIT
[Note 3]      $21,329    $15,235    40.0    $39,240    $28,352    38.4
Net Earnings
before
Unusual Items
[Note 4]      $11,444     $8,010    42.9    $19,683    $14,483    35.9
Net Earnings   $9,837     $1,623   506.1    $18,079     $8,096   123.3
EPS bef. Unusual
items [in cents] 12.3        8.6    44.2       21.2       15.4    37.7
EPS [in cents]   10.6        1.7   512.1       19.5        8.6   126.1
----------------------------------------------------------------------


                         SEGMENTED INFORMATION
                              ---------------------
RESTAURANT  2nd Quarter  2nd Quarter
SEGMENT        ended       ended              YTD       YTD
                Sept       Sept       %       Sept      Sept         %
               17/00      12/99   Variance   17/00     12/99  Variance
----------------------------------------------------------------------
System Sales
[Note 5]    $233,714   $205,305    13.8   $455,947   $356,570     27.9
Gross Revenue
[excl. sales by
franchise
operators]   $96,656    $82,641    16.9   $191,023   $130,773     46.1
EBIT [Note 3]$14,265    $12,682    12.5    $27,635    $23,026     20.0
----------------------------------------------------------------------

FOODSERVICES 2nd Quarter  2nd Quarter
SEGMENT       ended       ended              YTD       YTD
               Sept       Sept       %       Sept      Sept         %
              17/00       12/99   Variance   17/00     12/99  Variance
----------------------------------------------------------------------
System Sales
[Note 6]    $154,241   $141,025     9.4   $311,186   $286,210      8.7
Gross Revenue
[Note 7]    $174,641   $160,006     9.1   $352,091   $323,510      8.8
EBIT [Note 3]$12,581   $  8,501    48.0   $ 22,608   $ 16,372     38.1
----------------------------------------------------------------------

Note 1: System sales include sales by Cara's franchisees and
franchise operators but exclude intercompany sales and sales to Cara's
franchise operators by Summit.

Note 2: EBITDA is earnings before interest, taxes, depreciation
and amortization.

Note 3: EBIT is earnings before interest, provision for taxes and
after-tax equity income.

Note 4: Net earnings have been adjusted for the impact of Second Cup's
adjustments: Fiscal 2001 - the write down of the investment in the shares
of Diedrich Coffee, Inc. and Fiscal 2000 - the loss on strategic
divestments (the U.S. operations).

Note 5: Restaurant Segment system sales include sales by franchise
operators.

Note 6: Foodservices' Segment system sales exclude intercompany
sales and sales to Cara's franchise operators by Summit.

Note 7: Foodservices' gross revenue excludes intercompany sales
but includes sales to Cara's franchise operators by Summit.


CARA OPERATIONS LIMITED
Consolidated Statements of
Earnings
Unaudited        12 WEEKS ENDED              24 WEEKS ENDED
                Sept 17    Sept 12   %     Sept 17    Sept 12     %
(In thousands of  2000      1999   Change   2000       1999    Change
dollars, except
for share data)
---------------------------------------------------------------------
System Sales  $ 387,955  $ 346,330  12.0  $ 767,133  $ 642,780   19.3
---------------------------------------------------------------------

Gross Revenue $ 271,297  $ 242,647  11.8  $ 543,114  $ 454,283   19.6
---------------------------------------------------------------------

Earnings
 before :     $  31,738  $  23,872  33.0  $  59,328  $  44,178   34.3
Amortization of
property, plant
and equipment     8,924      7,346  21.5     17,453     13,438   29.9
Amortization of
goodwill and
other assets      1,322      1,129  17.1      2,310      2,064   11.9
Interest expense on
consolidated
operations
(Note 1)          2,237      2,323  -3.7      4,639      3,602   28.8
---------------------------------------------------------------------


Earnings
 before :        19,255     13,074  47.3     34,926     25,074   39.3
Interest expense on
equity investments  464        439   5.7        903      1,234  -26.8
Amortization of
goodwill relating to
equity investments  163        163   0.0        326        326    0.0
Share of net earnings
- The Spectra Group
& Second Cup
(Note 2)           (355)   (5,174) -93.1       (299)    (5,082) -94.1
----------------------------------------------------------------------

Earnings before: 18,273      7,298 150.4    33,398      18,432   81.2
Income taxes      8,008      5,514  45.2    14,570      10,175   43.2
Non-controlling
shareholders'
interest            428        161 165.8       749         161  365.2

----------------------------------------------------------------------
Net earnings for
 the period     $ 9,837    $ 1,623 506.1  $ 18,079    $  8,096  123.3
----------------------------------------------------------------------

Shares
 Outstanding (000's)
Common           42,985     42,984   0.0    42,985      42,984    0.0
Class A,
non-voting       49,868     50,243  -0.7    49,868      50,243   -0.7
----------------------------------------------------------------------
    Total        92,853     93,227  -0.4    92,853      93,227   -0.4
----------------------------------------------------------------------
Earnings Per Share
 (cents)
 Basic             10.6        1.7 512.1      19.5         8.6  126.1
 Fully Diluted     10.2        1.7 500.6      18.8         8.5  120.3
----------------------------------------------------------------------

Note 1: Includes interest incurred on all investments except the
investments in The Second Cup Ltd. and The Spectra Group of Great
Restaurants, Inc.

Note 2: Cara's share of equity earnings of The Second Cup Ltd.
booked in the 2nd Quarter includes Cara's proportionate share in the
Second Cup's fourth quarter earnings for fiscal 2000 and its first
quarter results for fiscal 2001. In their fourth quarter in fiscal
2001, Second Cup wrote down their investment in Diedrich Coffee, Inc.
by $4.1 million. Cara's share of that write down reduced reported net
earnings in the second quarter by $1.6 million (1.7 cents per share).
During its fourth quarter last year, Second Cup incurred a non-cash
$16.2 million after tax loss relating to its strategic divestments
(the U.S. operations). Cara's share of that loss reduced net earnings
during its second quarter last year by $6.4 million (6.8 cents per
share).



CARA OPERATIONS LIMITED
Consolidated Statements
of Cash Flows
Unaudited                 12 WEEKS ENDED          24 WEEKS ENDED
(In thousands of         Sept 17   Sept 12       Sept 17    Sept 12
 dollars)                 2000      1999          2000       1999
--------------------------------------------------------------------
Cash Flows Provided by
 (Used in)

Operating Activities
  Earnings from
   operations           $  9,837   $ 1,623     $  18,079   $   8,096
  Adjustments for:
  Amortization of property,
  plant & equipment        8,924     7,346        17,453      13,438
  Amortization of
  goodwill and other
  assets                   1,322     1,129         2,310       2,064
  Equity loss                518     5,337           625       5,408
  Non-controlling
  shareholders' interest     428       161           749         161
  Loss on disposal of
   property, plant & equipment 8       436             8         612
  Restructuring costs       (231)     (192)         (324)       (662)
--------------------------------------------------------------------
  Cash flow before change
   in working capital     20,806    15,840        38,900      29,117
  Change in non-cash
   operating working
   capital                (7,994)  (16,312)      (11,706)    (19,703)
--------------------------------------------------------------------
                          12,812      (472)       27,194       9,414
--------------------------------------------------------------------


Investing Activities
  Purchase of property,
  plant & equipment    $ (27,341) $ (12,507)   $ (44,010)  $ (24,202)
  Purchase of goodwill
  and other assets          (296)      (146)        (673)       (650)
  Repayment of employee
  stock plan loans           597          -          972         393
  Business acquisitions        -    (40,000)           -     (40,000)
  Other                      873        (57)       1,219        (554)
  Proceeds on disposal
   of property, plant
   & equipment             1,521         66        4,205         609
  Proceeds on sale of
   The Second Cup shares       -          -            -      31,473
  Dividends from The
   Second Cup shares           -          -        7,326           -

--------------------------------------------------------------------
                       $ (24,646)   (52,644)   $ (30,961) $  (32,931)
--------------------------------------------------------------------

Financing Activities
  Share repurchase     $       -   $ (4,100)   $     (41) $   (5,536)
  Change in long-term
   debt                   13,116     (3,290)      11,540      (4,292)
  Dividends paid               -          -       (6,499)     (6,617)

--------------------------------------------------------------------
                       $  13,116     (7,390)   $   5,000  $  (16,445)
--------------------------------------------------------------------

Net Change in Cash         1,282    (60,506)       1,233     (39,962)

Cash  - Beginning of
 Period                    3,168     63,446        3,217      42,902

--------------------------------------------------------------------
Cash - End of Period   $   4,450   $  2,940    $   4,450  $    2,940
--------------------------------------------------------------------


CARA OPERATIONS LIMITED
Consolidated Balance Sheets
Unaudited
                                               2000            1999
(In thousands of dollars)                    Sept 17         Sept 12
--------------------------------------------------------------------
ASSETS

Current

Cash                                         $ 4,450        $ 2,940
Accounts receivable                           93,499         86,960
Inventories                                   28,891         26,341
Prepaid expenses and other assets              3,686          5,216
Future income taxes                            9,680          3,938
Current portion of long-term receivables       4,121          1,831
-------------------------------------------------------------------
                                             144,327        127,226
Long-Term Receivables                         13,825         15,957
Property, Plant & Equipment                  345,936        303,699
Goodwill and Other Assets                     91,607         94,149
Future Income Taxes  (Note 1)                  6,874         10,010
Equity Investments                            38,285         45,341
-------------------------------------------------------------------
                                           $ 640,854        596,382
-------------------------------------------------------------------
-------------------------------------------------------------------

LIABILITIES AND EQUITY

Current Liabilities
Accounts payable and accrued liabilities   $ 126,218      $ 111,535
Income taxes payable                           3,970          3,111
Provision for restructuring costs              6,813          7,646
Current portion of long-term debt              5,796          9,398
-------------------------------------------------------------------
                                             142,797        131,690
Other Long-Term Liabilities  (Note 1)         18,767         11,083
Long-Term Debt                               195,050        188,141
Future Income Taxes                           18,836         17,777
-------------------------------------------------------------------
                                             375,450        348,691
-------------------------------------------------------------------

-------------------------------------------------------------------
Non-controlling Shareholders' Interest         4,683          3,468
-------------------------------------------------------------------

SHAREHOLDERS' EQUITY
Capital Stock                                 30,068         30,248
Retained Earnings   (Note 1)                 230,653        213,975
-------------------------------------------------------------------

                                             260,721        244,223
-------------------------------------------------------------------
                                           $ 640,854      $ 596,382
-------------------------------------------------------------------
-------------------------------------------------------------------

Note 1: Effective April 3, 2000, Cara adopted section 3461 of the
Canadian Institute of Chartered Accountants handbook, entitled
"Employee Future Benefits". Cara has implemented section 3461 on a
retroactive basis but without restatement of comparative amounts.
Using prescribed changes to pension accounting, estimated assumptions
and current market-related discount rates, which are lower than those
previously used by the Company the following balance sheet accounts
were affected. The Company's pension obligation increased by $8.9
million, opening retained earnings decreased by $5.6 million and
future income taxes recoverable increased by $3.3 million.


CARA OPERATIONS LIMITED
Segmented Information
(In thousands of dollars)
Unaudited                                24 Weeks Ended
                                       September 17,  2000
----------------------------------------------------------------------
                     Restaurant  Foodservices
                       Segment     Segment         Other         Total

 System Sales       $  455,947   $  311,186     $     -    $   767,133

 External Gross
  Revenue              191,023      352,091           -        543,114

 Intersegment Revenue
  excluded from above        -       30,206           -         30,206

 Amortization of
  property, plant &
  equipment             11,767        5,162         524         17,453

 Amortization of
  goodwill and other
   assets                1,184        1,083          43          2,310

 Earnings before
  interest, income taxes
   and equity earnings  27,635       22,608     (11,003)        39,240

 Total Assets          305,454      266,689      68,711        640,854

 Additions to property,
  plant and equipment   12,238       31,430         342         44,010

 Additions to goodwill
  and other assets         452          221           -            673

                                         24 Weeks Ended
                                       September 12,  1999
                     Restaurant   Foodservices
                       Segment      Segment        Other         Total
----------------------------------------------------------------------
 System Sales       $ 356,570    $  286,210    $      -     $  642,780

 External Gross
  Revenue             130,773       323,510           -        454,283

 Intersegment Revenue
  excluded from above       -        27,629           -         27,629

 Amortization of
  property, plant &
  equipment             7,661         4,705        1,072        13,438

 Amortization of
  goodwill and other
  assets                  628         1,393           43         2,064

 Earnings before
  interest, income taxes
  and equity earnings  23,026        16,372      (11,046)       28,352

 Total Assets         291,079       217,565       87,738       596,382

 Additions to property,
 plant and equipment   14,117         9,551          534        24,202

 Additions to goodwill
 and other assets         132           518            -           650



CARA OPERATIONS LIMITED -   LOCATION  STATISTICS

                       24 Weeks Ended   12 Weeks Ended  53 Weeks Ended
                   September 17, 2000    June 25, 2000   April 2, 2000

Swiss Chalet               178              180                  181
Harvey's                   370              371                  366
Kelsey's                    86               81                   79
Montana's                   29               27                   24
Outback                     11               10                   10

Airport Services Division
   Flight Kitchens          12               12                   12

Air Terminal & Toast!
 Cafe and Grill             88               88                   85


Beaver Foods Institutional
 Catering
   High schools            482              442                  445
   Universities/colleges   210              246                  245
   Business and industry   292              316                  300
   Resource camps
   (remote catering)        66               63                   62
      Total              1,050            1,067                1,052

Health Services Division    52               51                   50

Summit Food Service
 Distribution Centers        3                3                    3
----------------------------------------------------------------------


      For additional shareholder information please contact:

     Michael Forsayeth                       Stock Exchange Listing
     Senior V.P. & Chief Financial Officer   Toronto, Ontario
     Tel:  905-405-6500
     Fax: 905-405-6777
     E-Mail:   finance@cara.com         Transfer Agent and Registrar
     Website: cara.com                  Montreal Trust Company

     6303 Airport Road
     Mississauga, Ontario          Market Share Prices
     Canada L4V 1R8
                                   September 17, 2000
On pourra se procurer              Common Shares, CAO
le texte francais de               (1999  $5.10)               $4.75
ce rapport en communiquant         Class A Non-Voting
avec le Responsable des            Shares, CAO.A (1999  $3.65) $4.11
relations avec les investissuers
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Publication:Business Wire
Date:Oct 25, 2000
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