• McKinsey Throwback – A recipe for restaurant revenue and sales growth. – Link
• Restaurant Dive – Fast food is getting faster, data shows – Link
• Restaurant Dive – Cost pressures may drive restaurant franchisee bankruptcies in 2024 – Link

• Craveworthy Brands buys major stake in Dirty Dough Cookies – Link
• Thai Union Group looks to sell stake in Red Lobster – Link
• Burger King Company to Acquire Carrols Restaurant Group for $1.0B – Link

• Authentic Restaurant Brands acquired Fiesta Restaurant Group for $220m

• FTC reportedly investigating Roark’s Subway purchase | The FTC is concerned the deal could create a monopoly in the sandwich segment, as Roark Capital also owns Arby’s, Jimmy John’s, and related chains.
  • Subway to be acquired by Roark Capital for $9B. Subway has been going through their sales process since late 2022.
• Bain Capital acquired Fogo de Chao for $560 million after it rapidly grew under Rhone Capital.
• Fat Brands buys Smokey Bones for $30m

• Darden acquired Ruth’s Hospitality Group for $715m
• Mohari acquired TAO Group Hospitality for $550m
• Main Squeeze Juice Co. [Conscious Capital] acquired I Love Juice Bar’s 20 units
• SSCP Restaurant Investors bought out bankrupt Corner Bakery for $15m

Source: Restaurant Mergers & Acquisitions | Restaurant Dive

Restaurant businesses are generally valued on multiples of their revenue or EBITDA, depending on their capital structure, growth potential, and franchise model. For example, a McDonald’s franchise has a higher revenue multiple than a company-owned restaurant chain like Shake Shack.

Here are some of the factors that affect restaurant valuation multiples:

• Capital structure: Businesses with less debt and more equity tend to have higher valuation multiples.
• Growth potential: Businesses with high growth potential tend to have higher valuation multiples.
• Franchise model: Franchise businesses tend to have higher valuation multiples than company-owned businesses.