CANADA BREAD CO. LTD. $46 - Toronto symbol CBY

CANADA BREAD CO. LTD. $46 (Toronto symbol CBY; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 25.4 million; Market cap: $1.2 billion; Price-to-sales ratio: 0.7; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.canadabread.ca) is Canada’s second-largest producer of baked goods, after Weston Bakery. It supplies around a third of Maple Leaf’s (see left) sales.

A big part of Maple Leaf’s restructuring is Canada Bread’s new $100-million facility in Hamilton, Ontario. This plant, which opened in September 2011, is Canada’s largest fresh bakery.

The new plant let Canada Bread close two outdated Toronto facilities in the latest quarter. The company plans to close a third Toronto-area bakery in early 2013.

The stock trades at 18.5 times the $2.48 a share the company will probably earn in 2012. The $2.00 dividend yields 4.3%. However, Maple Leaf’s 90.0% interest hurts the stock’s liquidity.

Canada Bread is a hold.

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