Toronto-based food concern Cara Operations Ltd. is gobbling up the remaining stake in restaurant operator Kelsey's International Inc. it does not already own, the companies said Monday.

Cara said it will pay about $60-million for the 34.6-per-cent stake, which is currently held by Paul Jeffrey, the founder and chief executive officer of Kelsey's International, and some of his associates.

Kelsey's operates restaurants under that name, as well as Montana's Cookhouse and Outback Steakhouse.

Cara acquired its initial majority interest in Kelsey's in July, 1999. At that point, Kelsey's had 99 restaurants and sales of $200-million. Now, the Kelsey's family of restaurants consists of 166 locations with annual sales of more than $360-million, it said.

Cara — the parent of Swiss Chalet, Harvey's, Second Cup and various airport-related food distributors — has annual sales of $1.8-billion. It also hold a 74-per-cent stake Milestone's Restaurants Inc., the parent of the Milestone's chain.

The deal is slated to close before the end of the month.

Shares of Cara, traded under the ticker symbol "CAO.A," were up 5 cents to $6.95 at last check Monday afternoon, on thin volume.