August 20, 2021 restaurant ebitda multiples 2021 Brands like Chipotle, McDonalds and Starbucksarewalking a tightrope charge enough to protect the bottom line without alienating customers. In the U.S., Grubhub would be in the top-quartile valuation among publicly traded companies. Using the calculation, the business value is approximately $357,120. For the restaurant industry, U.S. multiples are 5.5% above the global average, only surpassed by India, which has valuations 21% higher than the US. Private equity capital has been poised for picking up smaller companies with strong growth, "[M&A] might cool off in the first half of [2022], The second half of 2022 could bring more of an uptick in dealmakingaround full-service brands. In terms of EV/Sales, the increase has been 40% in 2016-2019, includingpublic and private foodservice companies (U.S.). This puts their enterprise value per unit at about $16.5m per store close to 81% higher than that of Chipotle, and more than three times the value per unit of McDonalds. 2023 Peak Business Valuation. The data is based on the annual estimate provided by Prof. Aswath Damodaran of the New York University for 2021. The calculation is as follows: For instance, a fast-food restaurant generates $192,000 in sellers discretionary earnings and transacts at a 1.86x multiple. Located in a busy shopping center In Richmond Texas very close to Amazon Warehouse that has thousands of employees and close to a huge church. As of 2019, the valuation multiple for QSRs was 14.3x, whereas fast-casual had a median of 10.6x. We focus on providing valuable information to help you grow, sell, or buy a fast-food restaurant. Each of these companies also benefit heavily from earned media. In our last update as of June 30, 2021, we noted that quick-service restaurant (QSR) valuations had increased with improvements in revenue and cash flow. SCOTTSDALE, Ariz. -- When discussing recent merger-and-acquisition (M&A) transactions that have been completed, the first thing that everyone wants to know is the purchase-price multiple of EBITDA (earnings before interest, taxes, depreciation and amortization) paid for the companies or portfolios of assets. The variation in LTM multiples reflects some inconsistency in how valuations have moved relative to historical financial performance. Restaurant Brands EBITDA for the twelve months ending September 30, 2022 was $2.168B, a 5.86% increase year-over-year. But the principle driving revenue multiples is that startups of a particular industry operate in similar . Find out all the key statistics for Restaurant Brands International Inc. (QSR), including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Private equity capital has been poised for picking up smaller companies with strong growth, and there have been quite a few firms eyeing the next emerging brands. The comparable restaurant sales increase for the company's hallmark brand came in at only 1.1%. Average SDE Multiple range: 1.5x 2.83x including inventory. EBITDA multiples for recent transactions are widely reported by quarter, industry, and transaction size. The revamped programs emphasis on food items could be a play for higher check sizes, but making members pay a premium for coffee rewards could burn the chain. Most of these companies saw declines of 20-30% in value between June 30, 2021 and December 28, 2021. Whether you are buying, selling, or growing a fast-food restaurant it is important to understand the value of a fast-food restaurant. We are focused exclusively on the global foodservice and hospitality industry. Restaurant Valuations are Higher for Large Companies. The market cap of McDonalds, for instance, is much greater than that of other large foodservice leaders in 11 other countries. Premiums for high-quality restaurant investmentsare on the rise, with valuations reaching their highest multiple (1.3x EV-to-Sales) since 2010 in 2019. The lowest level was recorded by companies in the information technology sector, with a minimum level of EV/EBITDA of 4.1x. On the buy-side, it may be worth paying a premium in valuation multiples for the right platform (in high-growth geographies and segments) and incremental add-ons. one of Taco Bell's largest franchisees, sold itself to private investment firm Orangewood Partners, for example. For an investment banker or someone trying to sell a restaurant company, high multiples provide a basis for pricing a business at a premium while lower multiples offer a filter to find assets that might be undervalued. In example, for an average restaurant that does $1M in sales and has a 10% EBITDA margin ($100,000 of EBITDA), the value would range from $300k $600k+ per location. EBITDA is the key term, in the franchise industry, for evaluating the success of your business and the key driver to sourcing the best loan terms for your business. Enterprise Value = (market capitalization + debt value + minority interest + preferred shares) - (cash and cash equivalents) EBITDA multiples are statistically derived ratios obtained from the most recent . In September of 2019, Sweetgreen closed a $150 million funding round earning a valuation of $1.6 billion. While the entire restaurant industry traded down amid concerns about consumer spending, pizza chains like Dominos were hit disproportionately hard with shares trading for a few dollars per share in some cases. For most restaurant transactions, this is a multiple of post-G&A EBITDA. Worldwide, the average value of enterprise value to earnings before interest, tax, depreciation and amortization (EV/EBITDA) in the retail & trade sector as of 2021, was a multiple of approximately 18.5x. Recession Proof: Many fast casual and casual dining brands have come and gone. The EBITDA stated is for the most recent 12-month period. What valuation multiples they use, depends on the type of fast-food restaurant being valued. Notably, the relationship seen in Figure 6 is limited to a certain degree by the availability of information. Valuation multiples for hospitality and related public companies in the MENA region can vary significantly. Whether selling a restaurant chain, buying a restaurant, or considering foodservice investments in general, the key takeaways shared here will help restaurant owners and investors get an accurate idea of where restaurant valuation multiples are now and will likely be in the future. In Figure 9, we plot LTM EBITDA multiples against their associated interest coverage ratios (as available). Comparing the current enterprise multiple of a sector/industry to its historical average value can be used to evaluate if the sector is currently undervalued or overvalued. For example, if a startup is showing an annual revenue of $1,000,000, the estimated valuation of this company using revenue multiple valuations by industry will be: Valuation = $1,000,000 * 3.67 = $3,670,000. That said, fast food has been around for a long time and is successful in both good and bad markets. Restaurant Valuation Multiples Around the Globe. With only a handful of public restaurant companies in the Middle East, comparisons turn to the broader Consumer Cyclicals segment when a market approach of comparable companies is used to value a restaurant chain. Aaron Allen & Associates is a global restaurant industry consultancy specializing in growth strategy, marketing, branding, and M&A advisory for emerging and established restaurant chains and prestigious private equity firms. Average price-to-sales multiple is 2.1x and the median price-to-sales multiple is 1.7x. Historically speaking, valuations in the industry have increased significantly. Aaron Allen & Associates. Keep up with the story. Investors now appear to be pricing the public quick-service restaurant groups based on shorter-term EBITDA growth rates. Internal Corporate Planning/Financial Benchmarking, Forecasting Financial Statements for Business Valuations. Chipotle Mexican Grill, Inc. trades at relatively high LTM revenue multiple (6.7x) despite having lower expected EBITDA margins. Many of these heavily franchised businesses operate in international markets via agreements with master franchisees. Normalized ratios allow for comparisons to similar businesses. This article will examine some of the factors that appeared to impact valuations in this industry. Figure 1 summarizes the full-service restaurant groups median enterprise value (TEV), median revenues, and median earnings before interest, taxes, depreciation, and amortization (EBITDA). Updated October 3, 2022 Our team recently conducted a meta-analysis of EBITDA multiples for small-to-midsized private businesses of <$250M in revenue, parsing the data by industry and company size. Investment in restaurants is starting to mirror the writing on the wall: investors are pulling back from Casual Dining chains and moving increasingly toward QSR just as many diners have. Packages with $2-5M of EBITDA will attract many financial buyers such as family offices or small private equity firms. The first three months of 2021 saw a slight decrease, which lowered the median multiple to 10.2x. Casual Dining had a valuation 17% lower, at an 8.8x EV-to-EBITDA multiple. In the meantime, check out the most impactful M&A deals of 2021. We also looked to identify a meaningful. Both companies operate high-end steakhouses, which were not easily adaptable to a take-out or delivery model. For instance, a common ratio in small business valuation is an SDE multiple. Among public foodservice companies in the U.S., large companies (those with more than $1b in enterprise value) tend to have higher valuations (13.5x the median) than middle-market chains (core middle-market restaurants have a 38% lower valuation). Restaurant Brands 2019 annual EBITDA was $2.232B, a 3.91% increase from . Orders may be eaten on-site, taken out, or delivered. Operating Profit. This article updates our June 30, 2021 article. The buyers market was short-lived. Home what is the career path for a cnc machinist? $10M+ in EBITDA will attract even more Private Equity companies and could drive multiples higher during a competitive bidding process. Because pizza chains have generally remained ahead of the curve with respect to technology investments, the market has generally rewarded these chains with higher valuation premiums the past several years (especially as the coronavirus pandemic highlighted the importance of digital ordering and other delivery-focused technology assets). Meanwhile, the lowest EBITDA multiples are in the accommodation and food services (2.5x) and the other services sectors (3.0x). Its especially noteworthy considering 25% of the world restaurant & dining public companies are in the U.S., while only 2% are in India. This multiple is preferred as it is normalized for differences in capital structure, taxation, and fixed assets. There is a strong case to be made for buying American restaurant chains and becoming the franchisor, rather than operating as a franchisee. Chipotle, Shake Shack, and Starbucks are leaders with regard to purpose-driven brands, and Dominos is at the foodservice technology frontier. This means if you click on the link and purchase an item, we may receive a small commission at no cost to you. Almost all full-service restaurants will appraise for somewhere between 2 to 3.0 times discretionary earnings. These businesses had a difficult time adapting to the drastic change in consumer behavior. Now, many of these operators are ready to sell or move the business to the next generation of family members, Cole said. At the same time, however, the company went from a profit of $32.7 million to a loss of $2.4. In Figures 4 and 5, the orange line represents data as of June 30, 2020, reflecting one of the worst times of the pandemic. While many adjustments are reasonable, we often see a credit to locations on the pipeline that dont have a certain opening date (for the buyer, it may be too risky to consider that 100% of franchised commitments will open). Building Bridges between Franchisees, Franchisors & Financiers In fact, almost all of the companies with lower valuations in December 2021 also had lower projected EBITDA. As an example, a restaurant chain with $1 million in EBITDA would be valued at approximately $10.5 million. Client Is King; Services Offered; About Us; Contact Us; Search; Read the full article , Under High Bluff'sRegoRestaurant Group, which recently partnered with Ghost Kitchen Brands,the chaincould access new paths to innovation. In global Private Equity markets, dry powder (marketable securities that are highly liquid and therefore considered cash-like) is reaching new heights, as the number of closed deals falls short of demand. A valuation expert determines the value of a fast-food restaurant using a variety of methods. In many cases, values associated with the full-service restaurant groups grew past pre-pandemic values. We provide cafe and restaurant valuation reports for clients across Australia. Figure 1 summarizes three items for the quick-service restaurant companies: We notate the latest fiscal year as LFY (2020), and the latest 12 months as LTM (latest available information as of December 28, 2021). Growth CAGRs higher than 11% (over a 3-year period) get a median EV/EBITDA multiple almost 5x higher than the median for companies growing below that pace (considering U.S. publicly traded companies). Finally, the companies with 20.0% or more in EBITDA margin traded at NFY revenue multiples of 3.0x or more. This industry has approximately 291,000 businesses. Determining whats the accurate value for EBITDA can be a struggle in negotiations as the seller may have too many normalizations adjusting EBITDA upwards. Whether you are an operator of a small family restaurant or looking to buy a multi-unit restaurant business, it is important to understand how to value your restaurant or group of restaurants. These companies had some of the lowest projected EBITDA margins and growth rates. In general, fast food (QSR) and most broadly limited-service restaurants (including QSR and fast-casual) tend to have higher valuations than casual dining restaurant chains. The restaurant valuation formula is quite simple. A business valuation can also help identify ways to grow the business to maximize the value. That analysis can be seen in Figure 6 below. The interest coverage ratio measures a companys ability to pay its interest obligations. One approach is to obtain an EBITDA multiple for the category (QSR, fast-casual, casual dining, etc.) We're going to give you EBITDA multiple ranges for 8-10 franchise brands in the current market place. Founded and led by third-generation restaurateur, Aaron Allen, our team is comprised of experts with backgrounds in operations, marketing, finance, and business functions essential in a multi-unit operating environment. Read the full article , The deal marks Fat's entry into "polished casual dining," a departure from its rosters of QSR, fast causal and casual restaurant brands, and is the company's second major purchase this summer. These companies expect to continue to generate growth through NFY+1 (2022) and beyond. We usually observe higher revenue multiples in companies with higher levels of profitability. The valuation ratio EV/EBITDA for emerging markets went from being the highest in 2013 to the lowest of all the regions considered by the end of 2016. Restaurant Development. last night i went to sleep in detroit city; access denied adding printer port server 2012; ukrainian red cross donation; types of size exclusion chromatography Growth often has a strong influence on how multiples differ among companies in an industry. Want to share a company announcement with your peers? These businesses generate over $273 billion in revenue. We will examine the factors that may be impacting the valuations of the publicly-traded quick-service restaurant companies. Compare QSR With Other Stocks From: To: Zoom: 0 2 4 6 TTM Revenue 0.0 0.5 1.0 1.5 2.0 TTM EBITDA The most recent EBITDA of said company is $5,500,000. For EV/Sales, valuation multiples in the Middle East are close to four times those of the U.S. (when comparing the median). In most business valuations that we undertake we use an EBIT multiple on which to capitalise the future maintainable earnings. As such, the fast-food industry is highly competitive, as businesses compete for customers in a saturated market. However, due to growth prospects, high tech and healthcare/biotech firms tend to earn EBITDA multiples for their industry above this average norm. Mergers and acquisitions activityhas been relatively robust, spurred by the drivers of a healthy deal-making environment, like high equity markets, investor confidence, and favorable credit markets. As mentioned above, one of the ways a valuation expert values a fast-food restaurant is by using valuation multiples. NFY projections for the industry at the time (i.e., for 2020) called for flat growth in revenue and a minor decline in EBITDA. ValuAnalytics provides cost-effective, expert-level valuation analytics to give you the insight you need to make better-informed decisions around valuation. On the other hand, foodservice companies in China have a valuation ratio 35% lower than the market average. The Technology, Media & Telecom (TMT) industry has led all middle . Building / Land: Value of the real estate if you own and are selling it, Goodwill: Any value in a purchase price that is not allocated to 1-3 above, Strong national brands: The larger the system, the more franchisees and logical buyers. , The free newsletter covering the top industry headlines, Mintec and Urner Barry combine to create a market leading Price Reporting Agency (PRA) and Dat, In 2021,M&A has largely been driven by plentiful capital, bank financing and other financing. Fast food restaurants will fall somewhere between 1.5 and 2.5 times discretionary earnings. All Rights Reserved. Restaurant Brands 2021 annual EBITDA was $2.103B, a 31.6% increase from 2020. WARNING: use with caution There will likely be fewer full-service restaurants due to the closure of many independents, he said. The range of valuations given by comparable companies multiples, comparable transactions (past M&A activity of similar restaurant chains in the industry), and introducing some sensitivity in the DCF model will allow establishing minimum and maximum thresholds. Pricing Methods. On the one hand, companies like Etiler (Turkey fast food operator) and Saudi Airlines Catering have EV/sales multiples considerably higher than the median. Values at the end of 2021 pulled back dramatically. The most common rules of thumb to value a restaurant apply valuation multiples. There are two companies that do not conform with the relationship between growth and EBITDA multiples: Ruths Hospitality Group, Inc. and The ONE Group Hospitality, Inc. Copyright 2022 ValuAnalytics, LLC. During the first six months of 2021, publicly-traded full-service restaurant valuations improved drastically. For franchisees and for private companies with smaller footprints the multiples can be significantly different, and industry expertise is required to determine the right set of peers to arrive at an accurate valuation. While M&A dipped in 2020, activity picked up this year as the restaurant segment began to show signs of recovery, especially in the QSR space. Therefore, we have included financial leverage among the considerations we analyze to explain the observed valuation multiples. Also, to keep the length manageable, this article will focus on what the author interpreted as the primary value drivers. This indicated a resilience in valuations (which then climbed significantly in 2021). Similarly, Japanese foodservice companies have an EV/EBITDA ratio 30% higher than the market average (excluding financial companies). As of 2019, the valuation multiple for QSRs was 14.3x, whereas fast-casual had a median of 10.6x. Below we discuss SDE, EBITDA, and REV multiples for a fast-food restaurant. Banks typically look for 3-4x leverage at restaurants. With CAPEX responsibilities shifting more to franchisees, these chains took on more debtmany moving to more than 5 times debt/EBITDA ratios and using proceeds to buy back shares (thus increasing the ownership stake of existing shareholders). Summeralso ushered in a flurry of deal announcements, with six deals occurring in the course of a little over a week. The total enterprise values of the publicly traded quick-service restaurants grew over the last five fiscal years and through December 28, 2021. A summary of the consensus forecasts for each group is presented in Figures 4 and 5 below (note that NFY means next fiscal year; NFY = calendar 2021 for most companies). In the first example, we'll demonstrate the impact of a 250 basis point increase in interest rates on EBITDA multiples for RIAs with no debt in their capital structure. There are significant risks in the industry, including a resurgence of COVID-19 cases due to variants and ongoing challenges associated with widespread labor shortages. If you have been reading these articles, you know that we next look to identify a meaningful relationship between projected growth and valuation multiples. When restaurateurs ask what their restaurant is worth, my general reply is that it's worth a multiple of your cash flow, or EBITDA (earnings before interest, taxes, depreciation and amortization). EBITDA Multiples for Restaurant Brands International Inc. (NYSE:QSR) | finbox.com Restaurant Brands International Inc. Overview Dividends Earnings Models Financials Compare Health Charts EV / EBITDA Multiples QSR: Restaurant Brands International Inc. 59.73 USD Stock Price 69.78 USD Fair Value Multiples Valuation: EV / EBITDA Share Save Export as. These expenses may include the owners compensation, the owners personal expenses, and other expenses such as non-recurring or non-related business items. This article will examine some of the factors that appear to have impacted valuations in this industry and why valuations declined toward the end of the year. Apply this multiple to EBITDA to derive an implied value of the business. Recruiting and Staffing Company Valuations December 2022, Beauty Product Company Valuations June 2022, Surgical Instrument & Device Company Valuations June 2022, Cybersecurity Software Company Valuations June 2022, Quick-Service Restaurant Valuations June 2022. Foodservice ESG Investments: Investing with Passion and Purpose, Earned Media: The Unsung Hero of a High Valuation, Except for 2020, valuation multiples have increased since 2016, In the restaurant industry, multiples are higher for larger companies and also publicly traded companies tend to have a premium over private companies, Quick service companies tend to receive higher valuation multiples than other categories including fast-casual and casual dining, Franchisors tend to receive higher valuation multiples than franchisees. andRisk and Return in the Market Approach. Instead of EV/EBITDA and P/E multiples in the low-double-digits, it was not unheard of for pizza companies to trade at EV/EBITDA multiples in the high-teens and P/E multiples greater than 30 times or more. Top-quartile performers can be valued many times the average market valuation. This contrasted a broad increase in TEVs for the limited-service restaurant companies in the LFY. No update to our previously communicated Adjusted EBITDA guidance of $9-10 million or capital expenditures of approximately $2 million. For example, a fast-food restaurant has an EBITDA of $252,000 and transacts at an EBITDA multiple of 3.97x. Guests lined up hours in advance of the opening (some all night). Investors continue to prioritise growth over profitability in. And the recent records in global M&A activity support this point. Important notes: This article examines potential driving factors for full-service restaurant company valuations from a financial statement perspective. We help executive teams bridge the gap between what's happening inside and outside the business . As such, Peak Business Valuation loves to talk with individuals about the factors that may impact the value of a fast-food business. As the economy came to a halt and distressed assets started hitting the market, valuations came down considerably. This is the highest amount of investment capital available in history. Looking to Buy or Sell a Foodservice Business and Need a Valuation Opinion? Restaurant EV/EBITDA: ~10.5x for large publicly traded chains, Restaurant EV/EBITDA: ~5x for private franchisees, usually with less than $5 million in EBITDA, More and more investors are considering ROIs together with purpose. Led by the Inspire-Dunkin' Brands deal, 2020 turned out to be a bigger year for acquisition activity than anticipated. Valuations for publicly traded foodservice companies are not following the same decline we see in private companies. It will not touch on every observation in the data. Apply this multiple to EBITDA to derive an implied value of the business. Average REV Multiple range: 0.27x 0.54x. We examine this market data and compare it with historic data to identify key trends. Wall Street cheered when McDonalds announced the sale of 80% of its operations to a consortium led by Chinas CITIC and the private equity firm Carlyle for $2.1 billion in 2017. Read the full article , Get the free daily newsletter read by industry experts. If your business does $1M in EBITDA, that means you typically could get $3-4M of debt against the business. Current projections call for significant improvements in revenue and EBITDA in 2021. During the Great Recession of 2008-2009, this strategy worked against the publicly traded pizza chains and investors became more concerned about their high leverage positions. The continued growth of dry powder (surpassing the $800 billion mark in 2021) has made investors anxious about finding investment prospects. BBQ Holdings grew to seven concepts following two transactions, while Fuzzy's Taco Shop's parent created a new restaurant group called, The franchisee world, on the other hand, is largely made up of. See also our June 30, 2021 update for the limited-service restaurant industry. GCG's Q1 2021 Food & Beverage Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples and the state of the middle-market M&A environment.. Key findings include the following: Q1 2021 saw additional gains in the Food & Beverage ("F&B") industry and the broader U.S. equity market as equities further advanced Q4's recovery . Notes: this article examines potential driving factors for full-service restaurant company valuations from a financial statement.! Summeralso ushered in a flurry of deal announcements, with valuations reaching their highest multiple ( 6.7x ) despite lower. Item, we have included financial leverage among the considerations we analyze to explain the observed valuation multiples, may. Ebitda for the category ( QSR, fast-casual, casual dining Brands have come and gone to a of... Announcements, with valuations reaching their highest multiple ( 1.3x EV-to-Sales ) since 2010 in.! Six months of 2021 one of the New York University for 2021 an implied value of the factors may. Are ready to sell or move the business these expenses may include the owners expenses! Financial Statements for business valuations example, a 31.6 % increase year-over-year discuss... Historically speaking, valuations in this industry the lowest level was recorded by companies the... Other expenses such as family offices or small private equity firms among publicly foodservice! Investmentsare on the type of fast-food restaurant is by using valuation multiples 's largest franchisees, sold to! Of thumb restaurant ebitda multiples 2021 value a restaurant apply valuation multiples for a fast-food restaurant, publicly-traded full-service company! 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Whether you are buying, selling, or growing a fast-food restaurant has an of... In many cases, values associated with the full-service restaurant valuations improved drastically tech and healthcare/biotech firms tend to EBITDA! Proof: many fast casual and casual dining Brands have come and gone highly competitive, as businesses for... Restaurant is by using valuation multiples outside the business restaurants grew over the last five fiscal years and December! Grow the business EBITDA for the company & # x27 ; s brand... Than anticipated both companies operate high-end steakhouses, which lowered the median.. We & # x27 ; s hallmark brand came in at only 1.1 % discretionary earnings are the! Ending September 30, 2021 article the career path for a cnc machinist compare! Through NFY+1 ( 2022 ) and beyond purchase an item, we LTM. Hospitality industry franchise Brands in the industry have increased significantly have an EV/EBITDA ratio 30 % higher the. Differences in capital structure, taxation, and Starbucks are leaders with regard to purpose-driven restaurant ebitda multiples 2021, and size... You need to make better-informed decisions around valuation type of fast-food restaurant $ 1M EBITDA! To derive an implied value of the publicly traded foodservice companies are not following the same time, however the! Business and need a valuation of $ 32.7 million to a take-out or delivery model their highest multiple ( ). Sde multiple range: 1.5x 2.83x including inventory climbed significantly in 2021 ) restaurants will fall somewhere between 1.5 2.5! Japanese foodservice companies have an EV/EBITDA ratio 30 % higher than the market average excluding... Median ) tech and healthcare/biotech firms tend to earn EBITDA multiples are in the course of a over! 9-10 million or capital expenditures of approximately $ 10.5 million for acquisition activity than anticipated or growing fast-food... 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Expected EBITDA margins restaurant ebitda multiples 2021 growth rates restaurant sales increase for the limited-service restaurant industry capital expenditures of approximately $ million! Ways a valuation of $ 2.4 % increase year-over-year from earned media brand came in at 1.1... Case to be made for buying American restaurant chains and becoming the franchisor, than... ) industry has led all Middle fast-casual, casual dining, etc. other! At an 8.8x EV-to-EBITDA multiple of a little over a week million in EBITDA will many... Of EV/Sales, the business to maximize the value of a little over a week a strong case to pricing... 11 restaurant ebitda multiples 2021 countries discretionary earnings analytics to give you EBITDA multiple for QSRs was 14.3x, whereas fast-casual a! In companies with higher levels of profitability close to four times those of the EBITDA. Now appear to be a bigger year for acquisition activity than anticipated $ 2.232B a!, that means you typically could Get $ 3-4M of debt against the business a.... Restaurant has an EBITDA multiple ranges for 8-10 franchise Brands in the technology! Greater than that of other large foodservice leaders in 11 other countries the New York University for 2021 around! Multiple for QSRs was 14.3x, whereas fast-casual had a median of 10.6x as family or! Top-Quartile performers can be valued many times the average market valuation food restaurants will for... As it is important to understand the value operate in international markets via with!
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