Public Company Valuation - Babson College Project

Ruby Tuesday Valuation

Team Blue Jay

Analyst Team:Henry Certain, Sae Young Lee, Kate Murphy, John Quinn, Abdullah Razooqi

Agenda Executive Summary Valuation Summary Company Overview Future Overview Comparable Companies Analysis Precedent Transactions (Strategic and Financial) Discounted Cash Flow Leveraged Buyout Conclusion Appendix

Executive Summary

CompcCo

PT

DCF

LBO

EBITDA Multiple: 8.0xRange: $9.96-$13.34TEV: $971.1M EBITDA Multiple: 8.5xRange: $10.86-$14.23TEV: $1,031.7MEBITDA Multiple: 8.0xRange: $7.91-$10.64TEV: $848.8M EBITDA Multiple: 8.0xRange: $7.96-$9.63TEV: $816.0M

Current Performance

0.6x LTM Sales

9.2x LTM EBITDA

$8.77 Stock Price

Valuation Date: 4/15/13

Valuation Summary

PT

COMPS

DCF

LBO

5.00 7.00 9.00 11.00 13.00 15.00 17.00

10.86

9.96

7.91

7.72

14.23

13.14

10.64

9.35

Implied Share Price

PT

COMPS

DCF

LBO

$600.0 $800.0 $1,000.0 $1,200.0

$928.6

$874.0

$764.7

$765.0

$1,134.9

$1,068.2

$932.8

$867.0

Implied TEV

Range:$9.35 - $10.86

Range:$867 - $1,134.9

Company Overview Full Service Restaurant Industry

Market Cap: $530.9M

786 Total Ruby Tuesday Storeso 709 Company Ownedo 77 Franchised

23 Lime Fresh Mexican Grill Stores

52 week range: $4.98 - $9.38

Factors Influencing the Company

Restructuring o New CEO o Downscale Shift

Television Advertising

Closed Marlin & Rays

Will open 6-7 new Lime Fresh Mexican Grills in 2013

Same store sales expected to be flat

Ruby Tuesday vs. Industry

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Rev Growth IBISRT Rev Growth

• Ruby Tuesday’s revenue growth has outperformed the industry 9/14 times

• Expected to underperform due to restructuring period

Historical Performance

1/31

/200

7

5/9/

2007

8/15

/200

7

11/2

1/20

07

2/27

/200

8

6/4/

2008

9/10

/200

8

12/1

7/20

08

3/25

/200

9

7/1/

2009

10/7

/200

9

1/13

/201

0

4/21

/201

0

7/28

/201

0

11/3

/201

0

2/9/

2011

5/18

/201

1

8/24

/201

1

11/3

0/20

11

3/7/

2012

6/13

/201

2

9/19

/201

2

12/2

6/20

12

4/3/

2013

0

50

100

150

200

250

300

350

400

450

RT US EquityBNUSFSRS Index

• Portrayal of historical performance of Ruby Tuesday vs. BNUSFSRS which is the Bloomberg index for United States Full service restaurants

Discounted Cash Flow Valuation

DCF OUTPUTS

BEAR BASE BULL5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

6.60

7.91

9.479.20

10.64

12.43

Implied Ranges

Low High

TEV$764.7

M $932.8M

MVE$486.2

M $654.3MShare Price $7.91 $10.64

$9.27

Implied Share Price

4063

0

4064

4

4065

8

4067

2

4068

6

4070

0

4071

4

4072

9

4074

2

4075

6

4077

0

4078

4

4079

8

4081

2

4082

6

4084

0

4085

4

4086

8

4088

2

4089

60

2

4

6

8

10

12

14

MarketShare Price

Bear Market $7.90

Projected $9.27 Bull

Market $10.95

ProjectedRevenue Growth -2.0%

EBIT Margin 2.4%

Tax Rate 35.0%

D&A % Sales 5.5%CapEx %

Sales 3.0%

Market ConditionsBull Bear

Revenue Growth -1.0% -3.5%EBIT Margin 4.8% -0.2%

Cost of Capital

Discount Rate (WACC)

Risk Free 2%Market

Premium 7%Beta 1.51

Cost of Debt 7.63%Cost of Equity 12.27%

WACC 9.28%Terminal Multiple EBITDA

8.0x

Total Debt

305.83

Total Equity440.68

Comparables Analysis

Implied Share Price

LTM TEV/

Revenue

LTM TEV/ EBITDA

FYE+1 TEV/

Revenue

FYE+1 TEV/ EBITDA

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

$22.0

$14.9

$10.0

$14.8

$9.3

$19.2

$13.1

$19.1

$12.3

Implied Share Price

LTM TEV/

Revenue

LTM TEV/

EBITDA

FYE+1 TEV/

Revenue

FYE+1 TEV/

EBITDA

$500.0

$700.0

$900.0

$1,100.0

$1,300.0

$1,500.0

$1,700.0

$1,176.7

$874.0

$1,169.4

$833.0

$1,438.1

$1,068.2

$1,429.2

$1,018.1

Implied TEV

Comparable Criteria Main metric: gross margin

Precedent Transactions

Precedent Transaction-Financial

LTM TEV/Revenue LTM TEV/EBITDA$800.0

$850.0

$900.0

$950.0

$1,000.0

$1,050.0

$1,100.0

$1,150.0

$1,200.0

$1,250.0

$941.3 $928.6

$1,150.5 $1,134.9

Implied TEV Ranges

LTM TEV/Revenue LTM TEV/ EBITDA$9.0

$10.0

$11.0

$12.0

$13.0

$14.0

$15.0

$16.0

$11.1 $10.9

$14.5 $14.2

Implied Share Price- Financial

$1038.8 $12.66

Precedent Transaction-Strategic

LTM TEV/Revenue LTM TEV/EBITDA$1,200.0

$1,300.0

$1,400.0

$1,500.0

$1,600.0

$1,700.0

$1,800.0

$1,900.0

$2,000.0

$1,529.7

$1,310.9

$1,869.6

$1,602.2

Implied TEV Ranges

LTM TEV/Revenue LTM TEV/ EBITDA$16.0

$18.0

$20.0

$22.0

$24.0

$26.0

$28.0

$20.7

$17.1

$26.2

$21.9

Implied Share Price- Strategic

$1578.1 $21.50

Criteria for PT Selection

Full Service Chain Restaurant Industry

Geographical Location: United States

Transaction Type: Financial and Strategic completed transactions

Private and public companies

Time Frame: 2006-Present

Precedent Transactions-Financial

Precedent Transactions- Strategic

Precedents Summary

30 Day Control Premium: 18.8%

TEV/Revenue: 0.8x

TEV/EBITDA: 8.5x

Implied Share Price (Financial): $12.66

Implied TEV: $1038.8

Leveraged Buyout

LBO – Transaction Summary

Total Enterprise Value - $816.0

Estimated Entity Value at 2017 $1,142.2

Equity Value at Sale - $820.2

2012 EBITDA $102.0EBITDA Multiple 8.0 xEquity Purchase Price $521.5

SALE IN 2012

2017E EBITDA $134.4EBITDA Multiple 8.5 xEquity to Sponsor $790.0IRR to Sponsor 16.0%IRR to Lender 15.0%Total Equity Value $820.2

SALE OF COMPANY IN 2017

Cash $48.2 5.5%Total Debt $459.0 52.3%Sponsor Equity $371.0 42.2%Total Funding $878.2 100.0%

Transaction Structure

LBO – Sensitivity Analysis

16.0% 7.5 x 8.0 x 8.5 x 9.0 x 9.5 x$114.4 6.6% 8.8% 10.8% 12.7% 14.4%$124.4 9.4% 11.6% 13.5% 15.4% 17.1%$134.4 12.0% 14.1% 16.0% 17.8% 19.5%$144.4 14.3% 16.4% 18.3% 20.1% 21.8%$154.4 16.4% 18.5% 20.4% 22.2% 23.9%20

17E

EB

ITD

AIRR to Financial Sponsor

Estimated range of IRR to Sponsor 14.1% - 17.8%

Implied Share Price Range at 2017 $12.34 – $14.52

Expected Premium of 52% at 2017

Conclusion

Valuation Summary

PT

COMPS

DCF

LBO

5.00 7.00 9.00 11.00 13.00 15.00 17.00

10.86

9.96

7.91

7.96

14.23

13.14

10.64

9.63

Implied Share Price

PT

COMPS

DCF

LBO

$600.0 $800.0 $1,000.0 $1,200.0

$928.6

$874.0

$764.7

$765.0

$1,134.9

$1,068.2

$932.8

$867.0

Implied TEV

Range:$9.35 - $10.86

Range:$867 - $1,134.9

Conclusion

Thank YOU

Q&A

APPENDIX

Comparable Companies

LTM TEV/Revenue LTM TEV/EBITDA FYE+1 TEV/Revenue FYE+1 TEV/EBITDA$600.0

$700.0

$800.0

$900.0

$1,000.0

$1,100.0

$1,200.0

$1,300.0

$1,400.0

$1,500.0

$1,600.0

$1,176.7

$874.0

$1,169.4

$833.0

$1,438.1

$1,068.2

$1,429.2

$1,018.1

Implied MVE

How We Chose our Comps

Valuation SummaryMultiples Range Latest Quarter (1) TEV Range

Methodology Babson Retail Low Mid High Cash

Total Debt Min. Int

Pref. Stock Low Mid High Low Mid High

Comparable Public Companies (Minority Interest Value)

TEV / Revenue

LTM $1,307.4 $1.40 1.17x 1.3x 1.43x $31.8 $296.7 $0.0 $0.0 $1,529.7 $1,699.6 $1,869.6 $1,264.8 $1,434.7 $1,604.7

FYE + 1 $1,299.3 1.17x 1.3x 1.43x $31.8 $296.7 $0.0 $0.0 $1,520.2 $1,689.1 $1,858.0 $1,255.3 $1,424.2 $1,593.1

TEV / EBITDA

LTM $121.4 14.0000 10.80x 12.0x 13.20x $31.8 $296.7 $0.0 $0.0 $1,310.9 $1,456.6 $1,602.2 $1,046.0 $1,191.7 $1,337.3

FYE + 1 $123.4 12.0000 9.00x 10.0x 11.00x $31.8 $296.7 $0.0 $0.0 $1,110.6 $1,234.0 $1,357.4 $845.7 $969.1 $1,092.5

Price / Earnings or MVE/Net Income

LTM ($15.7) 28.0000 25.20x 28.0x 30.80x $31.8 $296.7 $0.0 $0.0 ($130.7) ($174.7) ($218.7) ($395.6) ($439.6) ($483.6)

FYE + 1 $7.1 23.0000 23.40x 26.0x 28.60x $31.8 $296.7 $0.0 $0.0 $431.0 $449.5 $468.0 $166.1 $184.6 $203.1

AVERAGE $961.9 $1,059.0 $1,156.1 $697.0 $794.1 $891.2

MEDIAN $1,210.8 $1,345.3 $1,479.8 $945.9 $1,080.4 $1,214.9

HIGH $1,529.7 $1,699.6 $1,869.6 $1,264.8 $1,434.7 $1,604.7

LOW ($130.7) ($174.7) ($218.7) ($395.6) ($439.6) ($483.6)

MVE Range

VALUATION SUMMARY

COMPS Output

Financial Statistics & Ratios

Ruby Tuesday, Inc (NYSE:RT)Input Page($ in millions, except per share data)

Company Name Ruby Tuesday, Inc Prior Current 2012A 12/4/2012

Ticker RT Fiscal Year Ending June 5, Stub Stub LTM Cash and Cash Equivalents $48.2 $31.8

Stock Exchange NYSE 2010A 2011A 2012A 11/29/2011 12/4/2012 12/4/2012 Accounts Receivable 4.7 5.1

Fiscal Year Ending 6/5/2012 Sales $1,194.8 $1,265.2 $1,325.8 $953.9 $935.4 $1,307.4 Inventories 29.0 33.3

Moody's Corporate Rating NA COGS 344.5 365.7 380.5 279.1 254.5 355.9 Prepaids and Other Current Assets 46.4 61.3

S&P Corporate Rating NA Gross Profit $850.3 $899.5 $945.3 $674.8 $680.9 $951.4 Total Current Assets $128.3 $131.4 Predicted Beta 3.51 SG&A 70.5 86.0 114.5 77.5 111.8 148.9 Marginal Tax Rate 98.7% Other Expense / (Income) 705.7 748.6 826.1 576.7 555.5 804.9 Property, Plant and Equipment, net 966.6 888.1

EBIT $74.1 $65.0 $4.7 $20.6 $13.5 ($2.4) Goodwill and Intangible Assets 8.0 9.0 Interest Expense 16.4 12.4 19.6 13.3 20.6 26.9 Other Assets 70.7 68.1

Current Price 4/15/2013 $8.77 Pre-tax Income $57.8 $52.6 ($14.9) $7.3 ($7.0) ($29.3) Total Assets $1,173.5 $1,096.7

% of 52-week High 96.8% Income Taxes 12.4 5.7 (14.8) (2.9) (10.6) (22.5) 52-week High Price 9.06 Noncontrolling Interest - - - 4.6 13.9 9.2 Accounts Payable 34.9 13.9

52-week Low Price 4.98 Preferred Dividends - - - (0.9) (1.1) (0.2) Accrued Liabilities 84.8 92.2

Dividend Per Share (MRQ) - Net Income $45.3 $46.9 ($0.2) $6.6 ($9.1) ($15.9) Other Current Liabilities 12.5 9.2

Effective Tax Rate 21.5% 10.9% 98.7% (40.0%) 150.9% 76.6% Total Current Liabilities $132.2 $115.2

Fully Diluted Shares Outstanding 61.119

Equity Value $536.0 Weighted Avg. Diluted Shares 61.9 64.9 62.9 63.5 62.0 61.4 Total Debt 314.2 296.7 Diluted EPS $0.73 $0.72 ($0.00) $0.10 ($0.15) ($0.25) Other Long-Term Liabilities 150.9 144.2

Plus: Total Debt 296.7 Total Liabilities $597.3 $556.1 Plus: Preferred Stock - Plus: Noncontrolling Interest - Noncontrolling Interest - -

Less: Cash and Cash Equivalents (31.8) Reported Gross Profit $850.3 $899.5 $945.3 $674.8 $680.9 $951.4 Preferred Stock - -

Enterprise Value $800.9 Non-recurring Items in COGS - - - - - - Shareholders' Equity 576.2 540.6

Adj. Gross Profit $850.3 $899.5 $945.3 $674.8 $680.9 $951.4 Total Liabilities and Equity $1,173.5 $1,096.7

% margin 71.2% 71.1% 71.3% 70.7% 72.8% 72.8% Balance Check 0.000 0.000

LTM NFY NFY+112/4/2012 2013E 2014E Reported EBIT $74.1 $65.0 $4.7 $20.6 $13.5 ($2.4)

EV/Sales 0.6x 0.6x 0.6x Non-recurring Items in COGS - - - - - - Basic Shares Outstanding 60.940 Metric $1,307.4 $1,299.3 $1,302.6 Other Non-recurring Items - - - - - - Plus: Shares from In-the-Money Options 2.124

EV/EBITDA 13.6x 7.7x 6.9x Adjusted EBIT $74.1 $65.0 $4.7 $20.6 $13.5 ($2.4) Less: Shares Repurchased (1.945)

Metric $58.9 $103.4 $115.3 % margin 6.2% 5.1% 0.4% 2.2% 1.4% (0.2%) Net New Shares from Options 0.179 EV/EBIT (330.3x) 25.4x 16.2x Plus: Shares from Convertible Securities -

Metric ($2.4) $31.5 $49.3 Depreciation & Amortization 63.8 62.9 65.3 48.2 44.3 61.4 Fully Diluted Shares Outstanding 61.119

P/E (34.2x) 79.7x 28.3x Adjusted EBITDA $137.9 $127.9 $70.0 $68.9 $57.8 $58.9 Metric ($0.26) $0.11 $0.31 % margin 11.5% 10.1% 5.3% 7.2% 6.2% 4.5%

Number of Exercise In-the-MoneyReported Net Income $45.3 $46.9 ($0.2) $6.6 ($9.1) ($15.9) Tranche Shares Price Shares Proceeds

Return on Invested Capital (0.3%) Non-recurring Items in COGS - - - - - - Tranche 1 2.124 $8.03 2.124 $17.1 Return on Equity (2.8%) Other Non-recurring Items - - - - - - Tranche 2 - - - - Return on Assets (1.4%) Non-operating Non-rec. Items - - - 0.6 0.8 0.1 Tranche 3 - - - - Implied Annual Dividend Per Share - Tax Adjustment - - - - - - Tranche 4 - - - -

Adjusted Net Income $45.3 $46.9 ($0.2) $7.2 ($8.4) ($15.7) Tranche 5 - - - -

% margin 3.8% 3.7% (0.0%) 0.8% (0.9%) (1.2%) Total 2.124 2.124 $17.1

Debt/Total Capitalization 35.4% Total Debt/EBITDA 5.0x Adjusted Diluted EPS $0.73 $0.72 ($0.00) $0.11 ($0.14) ($0.26)

Net Debt/EBITDA 4.5x Conversion Conversion New EBITDA/Interest Expense 2.2x Amount Price Ratio Shares

(EBITDA-capex)/Interest Expense 0.8x Issue 1 - - - -

EBIT/Interest Expense (0.1x) Depreciation & Amortization 63.8 62.9 65.3 48.2 44.3 61.4 Issue 2 - - - - % sales 5.3% 5.0% 4.9% 5.1% 4.7% 4.7% Issue 3 - - - - Capital Expenditures 17.7 26.7 38.0 29.1 27.7 36.6 Issue 4 - - - -

Sales EBITDA EPS % sales 1.5% 2.1% 2.9% 3.1% 3.0% 2.8% Issue 5 - - - -

Historical Total -

1-year 4.8% (45.3%) (100.4%) 2-year CAGR 5.3% (28.8%) -

Estimated1-year (2.0%) 47.8% (3,781.3%) 2-year CAGR (0.9%) 28.4% - Long-term -

Selected Market Data

Adjusted Income Statement

Trading Multiples

Calculation of Fully Diluted Shares Outstanding

Business Description

Ruby Tuesday, Inc., together with its subsidiaries, owns, develops, operates, and franchises casual dining restaurants.

General Information Reported Income Statement Balance Sheet Data

Notes

Cash Flow Statement Data

Growth Rates

Options/Warrants

LTM Return on Investment Ratios

LTM Credit Statistics

Convertible Securities

Panera Bread (NASDAQ:PNRA)Input Page

($ in millions, except per share data)

Company Name Panera Bread Prior Current 2012A 12/25/2012

Ticker PNRA Fiscal Year Ending December 25, Stub Stub LTM Cash and Cash Equivalents - $297.1

Stock Exchange NASDAQ 2010A 2011A 2012A NA 12/25/2012 12/25/2012 Accounts Receivable3- 86.3

Fiscal Year Ending 12/25/2012 Sales $1,542.5 $1,822.0 $2,130.1 - - $2,130.1 Inventories - 19.7

Moody's Corporate Rating NA COGS11,183.0 1,402.2 1,629.9 - - 1,629.9 Prepaids and Other Current Assets - 75.7

S&P Corporate Rating NA Gross Profit $359.5 $419.8 $500.2 - - $500.2 Total Current Assets - $478.8 Predicted Beta 0.84 SG&A 101.5 113.1 117.9 - - 117.9

Marginal Tax Rate 38.7% Other Expense / (Income)273.0 86.5 99.4 - - 99.4 Property, Plant and Equipment, net - 571.8

EBIT $185.1 $220.3 $282.9 - - $282.9 Goodwill and Intangible Assets - 210.0

Interest Expense 4.9 0.4 (0.1) - - (0.1) Other Assets4- 7.6

Current Price 4/18/2013 $179.49 Pre-tax Income $180.2 $219.9 $283.0 - - $283.0 Total Assets - $1,268.2

% of 52-week High 102.4% Income Taxes 68.6 84.0 109.5 - - 109.5 52-week High Price 175.26 Noncontrolling Interest (0.3) - - - - - Accounts Payable - 9.4

52-week Low Price 135.40 Preferred Dividends - - - - - - Accrued Liabilities - 268.2

Dividend Per Share (MRQ) - Net Income $111.9 $136.0 $173.4 - - $173.4 Other Current Liabilities5- 120.5

Effective Tax Rate 38.1% 38.2% 38.7% NA NA 38.7% Total Current Liabilities - $398.0


Equity Value $5,311.3 Weighted Avg. Diluted Shares 30.9 29.9 29.5 - - 29.5 Total Debt - - Diluted EPS $3.62 $4.55 $5.89 NA NA NA Other Long-Term Liabilities - 48.2

Plus: Total Debt - Total Liabilities - $446.2 Plus: Preferred Stock - Plus: Noncontrolling Interest - Noncontrolling Interest - -

Less: Cash and Cash Equivalents (297.1) Reported Gross Profit $359.5 $419.8 $500.2 - - $500.2 Preferred Stock - -

Enterprise Value $5,014.1 Non-recurring Items in COGS - - - - - - Shareholders' Equity - 821.9

Adj. Gross Profit $359.5 $419.8 $500.2 - - $500.2 Total Liabilities and Equity - $1,268.2

% margin 23.3% 23.0% 23.5% NA NA 23.5% Balance Check 0.000 0.000

LTM NFY NFY+112/25/2012 2013E 2014E Reported EBIT $185.1 $220.3 $282.9 - - $282.9


EV/EBITDA 13.4x 11.3x 10.1x Adjusted EBIT $185.1 $220.3 $282.9 - - $282.9 Less: Shares Repurchased (0.012)

Metric $373.8 $444.8 $495.8 % margin 12.0% 12.1% 13.3% NA NA 13.3% Net New Shares from Options 0.023 EV/EBIT 17.7x 14.8x 13.2x Plus: Shares from Convertible Securities 0.000

Metric $282.9 $338.4 $380.3 Depreciation & Amortization 68.7 79.9 90.9 - - 90.9 Fully Diluted Shares Outstanding 29.591

P/E 30.5x 25.5x 22.5x Adjusted EBITDA $253.7 $300.2 $373.8 - - $373.8 Metric $5.89 $7.05 $7.97 % margin 16.5% 16.5% 17.5% NA NA 17.5%

Number of Exercise In-the-MoneyReported Net Income $111.9 $136.0 $173.4 - - $173.4 Tranche Shares Price Shares Proceeds

Return on Invested Capital 107.8% Non-recurring Items in COGS - - - - - - Tranche 1 0.035 $63.18 0.035 $2.2 Return on Equity 42.2% Other Non-recurring Items - - - - - - Tranche 2 - - - - Return on Assets 27.4% Non-operating Non-rec. Items - - - - - - Tranche 3 - - - - Implied Annual Dividend Per Share - Tax Adjustment - - - - - - Tranche 4 - - - -

Adjusted Net Income $111.9 $136.0 $173.4 - - $173.4 Tranche 5 - - - -

% margin 7.3% 7.5% 8.1% NA NA 8.1% Total 0.035 0.035 $2.2

Debt/Total Capitalization - Total Debt/EBITDA - Adjusted Diluted EPS $3.62 $4.55 $5.89 - - $5.89

Net Debt/EBITDA (0.8x) Conversion Conversion New EBITDA/Interest Expense (2966.7x) Amount Price Ratio Shares

(EBITDA-capex)/Interest Expense (1757.8x) Issue 1 $0.0 $59.52 16.8 0.0

EBIT/Interest Expense (2245.0x) Depreciation & Amortization 68.7 79.9 90.9 - - 90.9 Issue 2 - - - - % sales 4.5% 4.4% 4.3% NA NA 4.3% Issue 3 - - - - Capital Expenditures 82.2 107.9 152.3 - - 152.3 Issue 4 - - - -

Sales EBITDA EPS % sales 5.3% 5.9% 7.2% NA NA 7.2% Issue 5 - - - -

Historical Total 0.000

1-year 16.9% 24.5% 29.5% 2-year CAGR 17.5% 21.4% 27.6%

Estimated (1) Includes Bakery-café expenses, Fresh dough and other product cost of sales to franchisees1-year 15.5% 19.0% 19.7% (2) Includes Depreciation and Amortization, pre opening expenses,2-year CAGR 12.5% 15.2% 16.3% (3) Includes Trade accounts receivable and Other accounts receivableLong-term 7.0% (4) Includes Deposits and other

(5) Includes Deferred rent and Deferred income taxes(6) Future estimates from Deutsche Bank's report by Jason West(7) Interest Expense only includes interest expense and other (income) expense net to stay consistent with analyst report

Notes


Panera Bread Company (Panera) s a national bakery-cafe concept with 1,541 Company-owned and franchise-operated bakery-cafe locations in 42 states. Panera operates under the Panera Bread, Saint Louis Bread Co. and Paradise Bakery & Cafe trademark names. The Company operates in three business segments: Company bakery-cafe operations, franchise operations, and fresh dough and other product operations.




Trading Multiples



Growth Rates

Options/Warrants




Ruth's Hospitality Group (NASDAQ:RUTH)Input Page


Company Name Ruth's Hospitality Group Prior Current 2012A 12/30/2012

Ticker RUTH Fiscal Year Ending December 30, Stub Stub LTM Cash and Cash Equivalents - $7.9

Stock Exchange NASDAQ 2010A 2011A 2012A NA 12/30/2012 12/30/2012 Accounts Receivable - 11.3

Fiscal Year Ending 12/30/2012 Sales1$353.0 $369.6 $398.6 - - $398.6 Inventories - 7.9

Moody's Corporate Rating NA COGS2278.0 292.9 313.4 - - 313.4 Prepaids and Other Current Assets5

- 4.9

S&P Corporate Rating NA Gross Profit $75.0 $76.7 $85.1 - - $85.1 Total Current Assets - $32.0 Predicted Beta 2.67 SG&A 22.8 22.8 28.3 - - 28.3

Marginal Tax Rate 28.0% Other Expense / (Income)3 26.3 29.8 30.6 - - 30.6 Property, Plant and Equipment, net - 90.0

EBIT $25.8 $24.1 $26.3 - - $26.3 Goodwill and Intangible Assets6 - 71.0

Interest Expense 4.2 3.4 3.2 - - 3.2 Other Assets7- 38.4

Current Price 4/18/2013 $9.11 Pre-tax Income $21.6 $20.7 $23.1 - - $23.1 Total Assets - $231.4

% of 52-week High 91.3% Income Taxes 4.8 1.6 6.7 - - 6.7

52-week High Price 9.98 Discontinued Operations40.9 (0.5) 35.8 - - 35.8 Accounts Payable - 13.1

52-week Low Price 5.65 Preferred Dividends 2.2 2.5 0.5 - - 0.5 Accrued Liabilities8- 23.1

Dividend Per Share (MRQ) - Net Income $13.8 $17.1 ($19.9) - - ($19.9) Other Current Liabilities9- 38.4



Equity Value $324.7 Weighted Avg. Diluted Shares 40.2 43.3 34.3 - - 34.3 Total Debt - 45.0

Diluted EPS $0.34 $0.39 ($0.58) NA NA NA Other Long-Term Liabilities10- 29.3

Plus: Total Debt 45.0 Total Liabilities - $149.0 Plus: Preferred Stock - Plus: Noncontrolling Interest - Noncontrolling Interest - -


Enterprise Value $361.8 Non-recurring Items in COGS - - - - - - Shareholders' Equity - 82.4

Adj. Gross Profit $75.0 $76.7 $85.1 - - $85.1 Total Liabilities and Equity - $231.4



EV/Sales 0.9x 0.9x 0.8x Non-recurring Items in COGS - - - - - - Basic Shares Outstanding 35.572 Metric $398.6 $412.1 $429.0 Other Non-recurring Items - - - - - - Plus: Shares from In-the-Money Options 1.197


Metric $40.8 $44.4 $47.2 % margin 7.3% 6.5% 6.6% NA NA 6.6% Net New Shares from Options 0.067 EV/EBIT 13.8x 12.1x 11.2x Plus: Shares from Convertible Securities -



Number of Exercise In-the-MoneyReported Net Income $13.8 $17.1 ($19.911) - - ($19.9) Tranche Shares Price Shares Proceeds

Return on Invested Capital 43.9% Non-recurring Items in COGS - - - - - - Tranche 1 1.197 $8.60 1.197 $10.3 Return on Equity 38.7% Other Non-recurring Items - - - - - - Tranche 2 - - - - Return on Assets 13.8% Non-operating Non-rec. Items (0.3) (0.4) 35.849 - - 35.8 Tranche 3 - - - - Implied Annual Dividend Per Share - Tax Adjustment - - - - - - Tranche 4 - - - -



Debt/Total Capitalization 35.3% Total Debt/EBITDA 1.1x Adjusted Diluted EPS $0.33 $0.39 $0.46 - - $0.46



EBIT/Interest Expense 8.3x Depreciation & Amortization 15.4 14.9 14.6 - - 14.6 Issue 2 - - - - % sales 4.4% 4.0% 3.7% NA NA 3.7% Issue 3 - - - - Capital Expenditures 6.1 9.0 11.5 - - 11.5 Issue 4 - - - -


Historical Total -

1-year 7.9% 4.8% 20.3% 2-year CAGR 6.3% (0.5%) 17.8%

Estimated (1) Includes Restaurant sales, Franchise income, and Other operating income1-year 3.4% 8.8% 22.7% (2) Includes Food and beverage costs, Restaurant operating expenses2-year CAGR 3.7% 7.5% 18.3% (3) Includes Debt issuance costs written-off and Other income (expense,) Marketing and advertising, Depreciation and amortization expenses, Pre-opening costs, Loss on impairment and asset disposals, Long-term 3.5% Restructuring benfit, and Gain on the settlement of unclaimed property liabilities

(4) Loss (Income) from operations of discontinued restaurants, net of income tax benefit (expense): 2012-$40; 2011-($182); 2010-$455(5) Includes Assets held for sale, Prepaid expenses and other, and Deferred income taxes(6) Includes Goodwill, Franchise rights, Trademarks, and Other intangibles(7) Includes Deferred income taxes and Other assets(8) Includes Accrued payroll and Accrued expenses(9) Includes Deferred revenue and Other current liabilities(10) Future Estimates from Deutsche Bank's report by Jason West(11) Interest Expense only includes interest expense and other (income) expense net to stay consistent with analyst report

Notes


Growth Rates

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Trading Multiples



Operates and franchises fine dining steak restaurants throughout the country. Its more than 85 company-owned or franchised restaurants are located in about 30 states, as well as Canada, Mexico, Hong Kong, and Taiwan. The menu features steak dinners, seafood, and an extensive wine list.


Biglari Holdings (NYSE:BH)Input Page


Company Name Biglari Holdings Prior Current 2012A 12/19/2012

Ticker BH Fiscal Year Ending September 26, Stub Stub LTM Cash and Cash Equivalents $60.4 $32.1


Fiscal Year Ending 9/26/2012 Sales1$673.8 $709.2 $740.2 $166.4 $166.5 $740.3 Inventories 6.6 6.7

Moody's Corporate Rating NA COGS2501.6 523.9 545.1 119.4 125.3 551.1 Prepaids and Other Current Assets4

275.0 309.7

S&P Corporate Rating NA Gross Profit $172.2 $185.3 $195.1 $47.0 $41.2 $189.3 Total Current Assets $349.0 $354.8 Predicted Beta 1.34 SG&A 41.6 48.4 64.3 13.3 13.6 64.6

Marginal Tax Rate 26.0% Other Expense / (Income)387.4 86.2 91.4 17.1 20.0 94.2 Property, Plant and Equipment, net 356.6 352.6

EBIT $43.3 $50.6 $39.4 $16.6 $7.7 $30.4 Goodwill and Intangible Assets 33.8 33.6 Interest Expense 1.9 2.8 8.2 1.9 1.7 8.0 Other Assets 34.4 32.6

Current Price 4/18/2013 $372.47 Pre-tax Income $41.4 $47.8 $31.2 $14.8 $5.9 $22.4 Total Assets $773.8 $773.6

% of 52-week High 88.5% Income Taxes 12.0 13.9 6.5 4.8 1.5 3.2 52-week High Price 420.93 Noncontrolling Interest 1.3 (0.6) 3.2 1.2 (0.2) 1.8 Accounts Payable 33.2 40.0

52-week Low Price 326.55 Preferred Dividends - - - - - - Accrued Liabilities 53.9 42.4

Dividend Per Share (MRQ) - Net Income $28.094 $34.565 $21.593 $8.8 $4.6 $17.4 Other Current Liabilities 37.2 46.1

Effective Tax Rate 29.0% 29.0% 20.7% 32.3% 26.0% 14.5% Total Current Liabilities $124.3 $128.4


Equity Value $535.0 Weighted Avg. Diluted Shares 1.4 1.3 1.3 1.3 1.3 1.3 Total Debt 120.3 120.3 Diluted EPS $19.99 $25.86 $16.15 $6.58 $3.42 $12.98 Other Long-Term Liabilities 128.0 126.4

Plus: Total Debt 120.3 Total Liabilities $372.6 $375.1 Plus: Preferred Stock - Plus: Noncontrolling Interest 53.3 Noncontrolling Interest 52.1 53.3



Adj. Gross Profit $172.2 $185.3 $195.1 $47.0 $41.2 $189.3 Total Liabilities and Equity $773.8 $773.6


LTM NFY NFY+112/19/2012 2013E 2014E Reported EBIT $43.3 $50.6 $39.4 $16.6 $7.7 $30.4


EV/EBITDA 12.0x NA NA Adjusted EBIT $43.3 $50.6 $39.4 $16.6 $7.7 $30.4 Less: Shares Repurchased (0.007)

Metric $56.5 - - % margin 6.4% 7.1% 5.3% 10.0% 4.6% 4.1% Net New Shares from Options 0.003 EV/EBIT 22.2x NA NA Plus: Shares from Convertible Securities -

Metric $30.4 - - Depreciation & Amortization 29.3 28.4 26.4 6.3 5.9 26.1 Fully Diluted Shares Outstanding 1.436

P/E 28.7x 22.3x 18.8x Adjusted EBITDA $72.6 $79.0 $65.8 $22.9 $13.6 $56.5 Metric $12.98 $16.67 $19.85 % margin 10.8% 11.1% 8.9% 13.8% 8.2% 7.6%

Number of Exercise In-the-MoneyReported Net Income $28.1 $34.6 $21.6 $8.8 $4.6 $17.4 Tranche Shares Price Shares Proceeds


Adjusted Net Income $28.1 $34.6 $21.6 $8.8 $4.6 $17.4 Tranche 5 - - - -

% margin 4.2% 4.9% 2.9% 5.3% 2.7% 2.3% Total 0.010 0.010 $2.7

Debt/Total Capitalization 25.8% Total Debt/EBITDA 2.1x Adjusted Diluted EPS $19.99 $25.86 $16.15 $6.58 $3.42 $12.98



EBIT/Interest Expense 3.8x Depreciation & Amortization 29.3 28.4 26.4 6.3 5.9 26.1 Issue 2 - - - - % sales 4.3% 4.0% 3.6% 3.8% 3.6% 3.5% Issue 3 - - - - Capital Expenditures 8.7 13.0 8.7 2.0 1.2 7.9 Issue 4 - - - -


Historical Total -

1-year 4.4% (16.7%) (37.6%) 2-year CAGR 4.8% (4.8%) (10.1%)

Estimated (1) Includes Restaurant Operations and Investment Management Operations1-year 2.7% (100.0%) 3.2% (2) Includes Cost of sales, Restaurant operating costs2-year CAGR 2.7% (100.0%) 10.9% (3) Includes Interest, dividend and other investment income, Interest on obligations under leases, Loss on debt extinguishment, Realized investment gains/losses, Depreciation and amortization, Marketing,Long-term - Rent, Pre-opening costs, Asset impairments and provision for restaurant clsoings, Loss on disposal of assets, and Other operating (income) expense

(4) Includes Investments, Assets held for sale, and Other current assets(5) Interest expense only includes interest expense

Notes


Biglari Holdings Inc.,along with its subsidiaries, is engaged in investment management and the franchising/operating of restaurants. The Company's wholly owned subsidiaries include Steak n Shake Operations, Inc. (Steak n Shake), Western Sizzlin Corporation (Western) and Biglari Capital Corp. (Biglari Capital). Biglari Holdings, as a capital allocating vehicle, is also in the business of owning other businesses in whole and in part.




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Growth Rates

Options/Warrants




Bravo Brio Restaurant Group (NASDAQ:BBRG)Input Page


Company Name Bravo Brio Restaurant Group Prior Current 2012A 12/30/2012

Ticker BBRG Fiscal Year Ending December 30, Stub Stub LTM Cash and Cash Equivalents - $13.7


Fiscal Year Ending 12/30/2012 Sales $343.0 $369.2 $409.1 - - $409.1 Inventories - 3.0

Moody's Corporate Rating NA COGS 203.9 222.5 246.6 - - 246.6 Prepaids and Other Current Assets - 6.5

S&P Corporate Rating NA Gross Profit $139.1 $146.7 $162.4 - - $162.4 Total Current Assets - $31.0 Predicted Beta 1.15 SG&A 37.5 21.2 23.7 - - 23.7 Marginal Tax Rate 30.0% Other Expense / (Income) 96.4 104.0 115.6 - - 115.6 Property, Plant and Equipment, net - 176.0

EBIT $5.1 $21.5 $23.2 - - $23.2 Goodwill and Intangible Assets - - Interest Expense 6.1 1.7 1.4 - - 1.4 Other Assets - 56.4

Current Price 4/18/2013 $15.37 Pre-tax Income ($1.0) $19.8 $21.8 - - $21.8 Total Assets - $263.3

% of 52-week High 73.0% Income Taxes 0.2 (56.7) 5.7 - - 5.7 52-week High Price 21.06 Noncontrolling Interest - - - - - - Accounts Payable - 10.7

52-week Low Price 12.28 Preferred Dividends 3.8 - - - - - Accrued Liabilities - 24.7

Dividend Per Share (MRQ) - Net Income ($5.0) $76.4 $16.1 - - $16.1 Other Current Liabilities - 21.3

Effective Tax Rate (22.8%) (286.9%) 25.9% NA NA 25.9% Total Current Liabilities - $56.8


Equity Value $315.2 Weighted Avg. Diluted Shares 9.3 20.6 20.6 - - 20.6 Total Debt - 20.4 Diluted EPS ($0.54) $3.72 $0.78 NA NA NA Other Long-Term Liabilities - 85.9












Number of Exercise In-the-MoneyReported Net Income ($5.0) $76.4 $16.1 - - $16.1 Tranche Shares Price Shares Proceeds


Adjusted Net Income ($5.0) $76.4 $16.1 - - $16.1 Tranche 5 - - - -

% margin (1.5%) 20.7% 3.9% NA NA 3.9% Total 0.992 0.992 $1.4

Debt/Total Capitalization 16.9% Total Debt/EBITDA 0.5x Adjusted Diluted EPS ($0.54) $3.72 $0.78 - - $0.78





Historical Total -

1-year 10.8% 9.3% (78.9%) 2-year CAGR 9.2% 39.3% -

Estimated (1) Interest expense only includes interest expense, net to stay consistent with analyst estimates1-year 5.3% 16.4% 21.3% (2) Analyst report Stephen Anderson from Miller Tabak2-year CAGR 8.2% 16.7% 23.8% Long-term -

Notes


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Trading Multiples



Bravo Brio Restaurant Group, Inc. owns and operates BRAVO! Cucina Italiana, a full-service Italian restaurant; BRIO Tuscan Grille, an Italian chophouse restaurant; and Bon Vie, a full-service American-French bistro restaurant. Its restaurants primarily offer Italian food and wine. As of December 30, 2012, BBRG operated 48 BRAVO!, 54 BRIO, and 1 Bon Vie restaurant in 31 states.


BJ's Restaurants, Inc. (NasdaqGS:BJRI)Input Page($ in millions, except per share data)

Company Name BJ's Restaurants, Inc. Prior Current 2012A 1/1/2013

Ticker BJRI Fiscal Year Ending January 1, Stub Stub LTM Cash and Cash Equivalents $22.4 $15.1

Stock Exchange NasdaqGS 2011A 2012A 2013A NA 1/1/2013 1/1/2013 Accounts Receivable 14.5 18.9

Fiscal Year Ending 1/1/2013 Sales $513.9 $620.9 $708.3 - - $708.3 Inventories 6.0 6.1

Moody's Corporate Rating NA COGS 304.3 367.2 420.7 - - 420.7 Prepaids and Other Current Assets 44.1 42.7

S&P Corporate Rating NA Gross Profit $209.6 $253.8 $287.6 - - $287.6 Total Current Assets $87.0 $82.7 Predicted Beta 0.70 SG&A 34.6 40.0 45.1 - - 45.1 Marginal Tax Rate 28.0% Other Expense / (Income) 144.8 171.4 201.6 - - 201.6 Property, Plant and Equipment, net 390.6 457.5

EBIT $30.2 $42.4 $40.9 - - $40.9 Goodwill and Intangible Assets 4.7 4.7 Interest Expense (0.6) (1.3) (1.8) - - (1.8) Other Assets 19.8 22.0

Current Price 4/18/2013 $31.71 Pre-tax Income $30.8 $43.7 $42.7 - - $42.7 Total Assets $502.1 $566.9

% of 52-week High 61.9% Income Taxes 7.6 12.1 11.2 - - 11.2 52-week High Price 51.23 Noncontrolling Interest - - - - - - Accounts Payable 23.8 25.7


Dividend Per Share (MRQ) - Net Income $23.2 $31.6 $31.4 - - $31.4 Other Current Liabilities 95.5 112.6

Effective Tax Rate 24.8% 27.7% 26.4% NA NA 26.4% Total Current Liabilities $169.6 $195.0


Equity Value $911.9 Weighted Avg. Diluted Shares 28.2 29.1 28.9 - - 28.9 Total Debt - - Diluted EPS $0.82 $1.08 $1.09 NA NA NA Other Long-Term Liabilities - -

Plus: Total Debt - Total Liabilities $169.6 $195.0 Plus: Preferred Stock - Plus: Noncontrolling Interest - Noncontrolling Interest - -



Adj. Gross Profit $209.6 $253.8 $287.6 - - $287.6 Total Liabilities and Equity $502.1 $566.9



EV/Sales 1.3x 1.1x 0.9x Non-recurring Items in COGS - - - - - - Basic Shares Outstanding 28.139 Metric $708.3 $810.3 $954.0 Other Non-recurring Items - 2.0 1.0 - - 1.0 Plus: Shares from In-the-Money Options 1.403






Return on Invested Capital 12.5% Non-recurring Items in COGS - - - - - - Tranche 1 1.403 $17.76 1.403 $24.9 Return on Equity 9.1% Other Non-recurring Items - 2.0 1.0 - - 1.0 Tranche 2 - - - - Return on Assets 6.0% Non-operating Non-rec. Items - - - - - - Tranche 3 - - - - Implied Annual Dividend Per Share - Tax Adjustment - (0.6) (0.3) - - (0.3) Tranche 4 - - - -








Historical Total -

1-year 14.1% 6.0% (1.9%) 2-year CAGR 17.4% 18.7% 16.3%

Estimated (1) Interest expense includes interest income, interest expense, gain on investment settlement, other income, net to stay consistent with analyst estimates1-year 14.4% 15.2% 13.3% (2) Analyst report by Brian Bittner from Oppenheimer and Co2-year CAGR 16.1% 18.4% 19.2% Long-term -



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Notes


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Options/Warrants




BJ’s Restaurants, Inc. owns and operates casual dining restaurants in the Unites States. Its restaurants offer pizzas, beers, appetizers, entrees, pastas, sandwiches, salads, and desserts. The company operates its



Texas Roadhouse, Inc. (NasdaqGS:TXRH)Input Page


Company Name Texas Roadhouse, Inc. Prior Current 2011A 12/25/2012

Ticker TXRH Fiscal Year Ending December 25, Stub Stub LTM Cash and Cash Equivalents $78.8 $81.7


Fiscal Year Ending 12/25/2012 Sales $1,005.0 $1,109.2 $1,263.3 - - $1,263.3 Inventories 10.7 10.9

Moody's Corporate Rating NA COGS 617.3 693.6 791.4 - - 791.4 Prepaids and Other Current Assets 11.0 13.4

S&P Corporate Rating NA Gross Profit $387.7 $415.6 $472.0 - - $472.0 Total Current Assets $112.0 $122.5 Predicted Beta 0.95 SG&A 52.5 57.7 70.6 - - 70.6 Marginal Tax Rate 32.8% Other Expense / (Income) 246.0 263.9 290.7 - - 290.7 Property, Plant and Equipment, net 497.2 531.7

EBIT $89.3 $94.0 $110.6 - - $110.6 Goodwill and Intangible Assets 120.0 122.7 Interest Expense 2.2 2.0 1.9 - - 1.9 Other Assets 11.5 14.4

Current Price 4/18/2013 $19.81 Pre-tax Income $87.1 $91.9 $108.7 - - $108.7 Total Assets $740.7 $791.3

% of 52-week High 97.2% Income Taxes 27.7 26.8 34.7 - - 34.7 52-week High Price 20.39 Noncontrolling Interest 2.4 2.5 2.6 - - 2.6 Accounts Payable 32.7 32.4


Dividend Per Share (MRQ) 0.46 Net Income $57.0 $62.7 $71.3 - - $71.3 Other Current Liabilities 67.5 88.0



Equity Value $1,387.7 Weighted Avg. Diluted Shares 72.9 72.3 70.0 - - 70.0 Total Debt 61.6 51.3 Diluted EPS $0.78 $0.87 $1.02 NA NA NA Other Long-Term Liabilities 46.9 50.6

Plus: Total Debt 51.3 Total Liabilities $244.8 $260.5 Plus: Preferred Stock - Plus: Noncontrolling Interest 5.7 Noncontrolling Interest 3.9 5.7


Enterprise Value $1,362.9 Non-recurring Items in COGS - - - - - - Shareholders' Equity 491.9 525.1

Adj. Gross Profit $387.7 $415.6 $472.0 - - $472.0 Total Liabilities and Equity $740.7 $791.3









Return on Invested Capital 22.8% Non-recurring Items in COGS - - - - - - Tranche 1 2.259 $13.24 2.259 $29.9 Return on Equity 14.0% Other Non-recurring Items - - - - - - Tranche 2 - - - - Return on Assets 9.3% Non-operating Non-rec. Items (1.4) (1.3) 0.1 - - 0.1 Tranche 3 - - - - Implied Annual Dividend Per Share 9.3% Tax Adjustment 0.4 0.4 (0.0) - - (0.0) Tranche 4 - - - -




Net Debt/EBITDA (0.2x) Conversion Conversion New EBITDA/Interest Expense 82.0x Amount Price Ratio Shares




Historical Total -

1-year 13.9% 15.1% 19.2% 2-year CAGR 12.1% 9.8% 15.2%

Estimated (1) Interest expense includes interest expense, equity income from investments in unconsolidated affliates1-year 11.9% 10.3% 12.8% (2) Analyst report Jason West from DB2-year CAGR 10.2% 9.3% 10.7% (3) Adjustments: unrealized gain (loss) on derivativesLong-term -



Growth Rates

Notes


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Options/Warrants




Texas Roadhouse, Inc., together with its subsidiaries, operates a full service casual dining restaurant chain. The company operates its restaurants under the Texas Roadhouse and Aspen Creek names. It also provides supervisory and administrative services for other license and franchise restaurants. As of February 26, 2013, the company operated 390 restaurants in 47 states and internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.



Bloomin' Brands, Inc. (NasdaqGS:BLMN)Input Page


Company Name Bloomin' Brands, Inc. Prior Current 2011A 12/31/2012

Ticker BLMN Fiscal Year Ending December 31, Stub Stub LTM Cash and Cash Equivalents $482.1 $261.7


Fiscal Year Ending 12/31/2012 Sales $3,628.3 $3,841.3 $3,987.8 - - $3,987.8 Inventories 69.2 78.2

Moody's Corporate Rating NA COGS 2,186.4 2,320.2 2,398.6 - - 2,398.6 Prepaids and Other Current Assets 136.3 143.1

S&P Corporate Rating B+ Gross Profit $1,441.9 $1,521.0 $1,589.2 - - $1,589.2 Total Current Assets $708.3 $487.8 Predicted Beta NA SG&A 252.8 291.1 326.5 - - 326.5 Marginal Tax Rate 16.5% Other Expense / (Income) 1,015.6 1,019.2 1,074.0 - - 1,074.0 Property, Plant and Equipment, net 1,635.9 1,506.0

EBIT $173.5 $210.8 $188.7 - - $188.7 Goodwill and Intangible Assets 834.9 822.8 Interest Expense 88.4 82.6 107.7 - - 107.7 Other Assets 174.8 200.0

Current Price 4/18/2013 $20.51 Pre-tax Income $85.0 $128.2 $81.0 - - $81.0 Total Assets $3,353.9 $3,016.6

% of 52-week High 108.0% Income Taxes 21.3 21.7 12.1 - - 12.1 52-week High Price 18.99 Noncontrolling Interest 6.2 9.2 11.3 - - 11.3 Accounts Payable 97.4 131.8


Dividend Per Share (MRQ) - Net Income $57.5 $97.3 $57.5 - - $57.5 Other Current Liabilities 632.5 352.5



Equity Value $2,588.1 Weighted Avg. Diluted Shares 106.0 106.7 114.8 - - 114.8 Total Debt 1,751.9 1,471.4 Diluted EPS $0.54 $0.91 $0.50 NA NA NA Other Long-Term Liabilities 605.3 633.5

Plus: Total Debt 1,471.4 Total Liabilities $3,313.6 $2,796.3 Plus: Preferred Stock 5.9 Plus: Noncontrolling Interest - Noncontrolling Interest - -

Less: Cash and Cash Equivalents (261.7) Reported Gross Profit $1,441.9 $1,521.0 $1,589.2 - - $1,589.2 Preferred Stock 9.4 5.9


Adj. Gross Profit $1,441.9 $1,521.0 $1,589.2 - - $1,589.2 Total Liabilities and Equity $3,353.9 $3,016.6



EV/Sales 1.0x 0.9x 0.9x Non-recurring Items in COGS - - - - - - Basic Shares Outstanding 121.529 Metric $3,987.8 $4,169.6 $4,452.5 Other Non-recurring Items 4.6 (2.7) 7.5 - - 7.5 Plus: Shares from In-the-Money Options 7.293






Return on Invested Capital 14.4% Non-recurring Items in COGS - - - - - - Tranche 1 7.293 $7.41 7.293 $54.0 Return on Equity 52.1% Other Non-recurring Items 4.6 (2.7) 7.5 - - 7.5 Tranche 2 - - - - Return on Assets 2.0% Non-operating Non-rec. Items - - - - - - Tranche 3 - - - - Implied Annual Dividend Per Share - Tax Adjustment (0.8) 0.4 (1.2) - - (1.2) Tranche 4 - - - -








Historical Total -

1-year 3.8% (2.8%) (37.6%) 2-year CAGR 4.8% 2.6% (2.0%)

Estimated (1) Interest expense includes loss on extinguishment and modification of debt, other expense (income) net, interest expense net to maintain consistency1-year 4.6% 19.1% 90.7% (2) Analyst: Jason West from DB2-year CAGR 5.7% 15.8% 48.8% (3) Adjustment: foreign currency translationLong-term -


Growth Rates

Options/Warrants




Notes


Bloomin' Brands, Inc. owns and operates casual, upscale casual, and fine dining restaurants primarily in the United States. The company operates restaurants under various concepts, including Outback Steakhouse, a casual dining steakhouse; Carrabba’s Italian Grill, an Italian casual dining restaurant; Bonefish Grill, a casual seafood restaurant; Fleming’s Prime Steakhouse and Wine Bar, an upscale, contemporary prime steakhouse; and Roy’s, an upscale dining restaurant.




Trading Multiples


Brinker International, Inc. (NYSE:EAT)Input Page


Company Name Brinker International, Inc. Prior Current 2012A 12/26/2012

Ticker EAT Fiscal Year Ending June 27, Stub Stub LTM Cash and Cash Equivalents $59.1 $93.1


Fiscal Year Ending 6/27/2012 Sales $2,858.5 $2,761.4 $2,820.7 $1,350.3 $1,373.3 $2,843.7 Inventories 25.4 26.3

Moody's Corporate Rating Ba1 COGS 1,742.5 1,628.8 1,661.6 1,122.7 1,130.6 1,669.5 Prepaids and Other Current Assets 67.0 62.7

S&P Corporate Rating BBB- Gross Profit $1,116.0 $1,132.5 $1,159.1 $227.6 $242.7 $1,174.2 Total Current Assets $194.8 $262.6 Predicted Beta 1.44 SG&A 136.3 132.8 143.4 64.0 68.3 147.7 Marginal Tax Rate 27.6% Other Expense / (Income) 825.2 794.3 783.9 68.1 66.3 782.1 Property, Plant and Equipment, net 1,043.6 1,038.0


Current Price 4/18/2013 $38.01 Pre-tax Income $132.0 $183.3 $208.8 $83.9 $95.7 $220.6 Total Assets $1,436.1 $1,501.2

% of 52-week High 102.3% Income Taxes 28.3 42.3 57.6 24.6 30.6 63.6 52-week High Price 37.17 Noncontrolling Interest - - - - - - Accounts Payable 100.5 83.7


Dividend Per Share (MRQ) 0.80 Net Income $103.7 $141.1 $151.2 $59.3 $65.0 $157.0 Other Current Liabilities 27.3 43.2



Equity Value $2,736.1 Weighted Avg. Diluted Shares 103.0 92.3 80.7 82.6 75.6 73.7 Total Debt 587.9 684.2 Diluted EPS $1.01 $1.53 $1.87 $0.72 $0.86 $2.02 Other Long-Term Liabilities 136.6 132.7

Plus: Total Debt 684.2 Total Liabilities $1,126.2 $1,248.2 Plus: Preferred Stock - Plus: Noncontrolling Interest - Noncontrolling Interest - -

Less: Cash and Cash Equivalents (93.1) Reported Gross Profit $1,116.0 $1,132.5 $1,159.1 $227.6 $242.7 $1,174.2 Preferred Stock - -


Adj. Gross Profit $1,116.0 $1,132.5 $1,159.1 $227.6 $242.7 $1,174.2 Total Liabilities and Equity $1,436.1 $1,501.2




EV/EBITDA 8.9x 8.1x 7.5x Adjusted EBIT $154.5 $205.4 $231.8 $95.5 $108.1 $244.4 Less: Shares Repurchased (1.780)

Metric $372.8 $411.1 $446.4 % margin 5.4% 7.4% 8.2% 7.1% 7.9% 8.6% Net New Shares from Options 1.201 EV/EBIT 13.6x 12.0x 11.0x Plus: Shares from Convertible Securities -

Metric $244.4 $277.6 $302.8 Depreciation & Amortization 135.8 128.4 125.1 62.3 65.6 128.3 Fully Diluted Shares Outstanding 71.983



Return on Invested Capital 29.1% Non-recurring Items in COGS - - - - - - Tranche 1 2.981 $22.69 2.981 $67.6 Return on Equity 55.8% Other Non-recurring Items - - - - - - Tranche 2 - - - - Return on Assets 10.7% Non-operating Non-rec. Items 34.0 - - - - - Tranche 3 - - - - Implied Annual Dividend Per Share 8.4% Tax Adjustment - - - - - - Tranche 4 - - - -


% margin 4.8% 5.1% 5.4% 4.4% 4.7% 5.5% Total 2.981 2.981 $67.6






Historical Total -

1-year 2.1% 6.9% 22.7% 2-year CAGR (0.7%) 10.9% 18.4%

Estimated (1) Interest expense includes interest expense and other net to maintain consistency with analyst report1-year 1.9% 15.2% 24.3% (2) Analyst John Ivankoe from JP Morgan2-year CAGR 2.8% 11.8% 21.1% Long-term -



Growth Rates

Notes


Trading Multiples


Options/Warrants




Brinker International, Inc. owns, develops, operates, and franchises various restaurant brands primarily in the United States. It operates the restaurants under the Chili’s Grill & Bar and Maggiano's Little Italy brand names. As of October 24, 2012, the company owned, operated, and franchised 1,585 restaurants, including 1,540 restaurants under the Chili's Grill & Bar names and 45 restaurants under the name of Maggiano's Little Italy.



McDonalds (NYSE:MCD)Input Page($ in millions, except per share data)

Company Name McDonalds Prior Current 2012A 12/31/2012

Ticker MCD Fiscal Year Ending December 31, Stub Stub LTM Cash and Cash Equivalents - $2,336.1

Stock Exchange NYSE 2010A 2011A 2012A NA 12/31/2012 12/31/2012 Accounts Receivable - 1,375.3


Moody's Corporate Rating A2 COGS113,059.5 14,837.9 15,223.7 - - 15,223.7 Prepaids and Other Current Assets - 1,089.0

S&P Corporate Rating A Gross Profit $11,015.1 $12,168.1 $12,343.3 - - $12,343.3 Total Current Assets - $4,922.1 Predicted Beta 0.39 SG&A 2,333.3 2,393.7 2,455.2 - - 2,455.2 Marginal Tax Rate 31.0% Other Expense / (Income) 1,208.7 1,244.7 1,283.5 - - 1,283.5 Property, Plant and Equipment, net - 24,677.2

EBIT $7,473.1 $8,529.7 $8,604.6 - - $8,604.6 Goodwill and Intangible Assets - 2,804.0 Interest Expense 472.8 517.5 525.6 - - 525.6 Other Assets - 2,983.2

Current Price 4/18/2013 $101.91 Pre-tax Income $7,000.3 $8,012.2 $8,079.0 - - $8,079.0 Total Assets - $35,386.5

% of 52-week High 101.5% Income Taxes 2,054.0 2,509.1 2,614.2 - - 2,614.2 52-week High Price 100.42 Noncontrolling Interest - - - - - - Accounts Payable - 1,141.9

52-week Low Price 99.03 Preferred Dividends - - - - - - Accrued Liabilities - 1,374.8

Dividend Per Share (MRQ) 2.87 Net Income $4,946.3 $5,503.1 $5,464.8 - - $5,464.8 Other Current Liabilities - 886.4

Effective Tax Rate 29.3% 31.3% 32.4% NA NA 32.4% Total Current Liabilities - $3,403.1

Fully Diluted Shares Outstanding 1,012.178

Equity Value $103,151.1 Weighted Avg. Diluted Shares 1,080.3 1,044.9 1,020.2 - - 1,020.2 Total Debt - 13,632.5 Diluted EPS $4.58 $5.27 $5.36 NA NA NA Other Long-Term Liabilities - 3,057.3

Plus: Total Debt 13,632.5 Total Liabilities - $20,092.9 Plus: Preferred Stock - Plus: Noncontrolling Interest - Noncontrolling Interest - -

Less: Cash and Cash Equivalents (2,336.1) Reported Gross Profit $11,015.1 $12,168.1 $12,343.3 - - $12,343.3 Preferred Stock - -

Enterprise Value $114,447.5 Non-recurring Items in COGS - - - - - - Shareholders' Equity - 15,293.6

Adj. Gross Profit $11,015.1 $12,168.1 $12,343.3 - - $12,343.3 Total Liabilities and Equity - $35,386.5


LTM NFY NFY+112/31/2012 2013E 2014E Reported EBIT $7,473.1 $8,529.7 $8,604.6 - - $8,604.6

EV/Sales 4.2x 4.0x 3.8x Non-recurring Items in COGS - - - - - - Basic Shares Outstanding 1,002.792 Metric $27,567.0 $28,619.0 $30,394.0 Other Non-recurring Items - - - - - - Plus: Shares from In-the-Money Options 17.100

EV/EBITDA 11.3x 10.9x 10.2x Adjusted EBIT $7,473.1 $8,529.7 $8,604.6 - - $8,604.6 Less: Shares Repurchased (7.714)

Metric $10,093.1 $10,484.0 $11,210.0 % margin 31.0% 31.6% 31.2% NA NA 31.2% Net New Shares from Options 9.386 EV/EBIT 13.3x 12.8x 11.9x Plus: Shares from Convertible Securities -

Metric $8,604.6 $8,951.0 $9,630.0 Depreciation & Amortization 1,276.2 1,415.0 1,488.5 - - 1,488.5 Fully Diluted Shares Outstanding 1,012.178

P/E 19.0x 17.7x 16.0x Adjusted EBITDA $8,749.3 $9,944.7 $10,093.1 - - $10,093.1 Metric $5.36 $5.76 $6.37 % margin 36.3% 36.8% 36.6% NA NA 36.6%

Number of Exercise In-the-MoneyReported Net Income $4,946.3 $5,503.1 $5,464.8 - - $5,464.8 Tranche Shares Price Shares Proceeds

Return on Invested Capital 64.7% Non-recurring Items in COGS - - - - - - Tranche 1 17.100 $45.97 17.100 $786.1 Return on Equity 71.5% Other Non-recurring Items - - - - - - Tranche 2 - - - - Return on Assets 30.9% Non-operating Non-rec. Items - - - - - - Tranche 3 - - - - Implied Annual Dividend Per Share 11.3% Tax Adjustment - - - - - - Tranche 4 - - - -

Adjusted Net Income $4,946.3 $5,503.1 $5,464.8 - - $5,464.8 Tranche 5 - - - -





EBIT/Interest Expense 16.4x Depreciation & Amortization 1,276.2 1,415.0 1,488.5 - - 1,488.5 Issue 2 - - - - % sales 5.3% 5.2% 5.4% NA NA 5.4% Issue 3 - - - - Capital Expenditures 2,135.5 2,729.8 3,049.2 - - 3,049.2 Issue 4 - - - -


Historical Total -

1-year 2.1% 1.5% 1.7% 2-year CAGR 7.0% 7.4% 8.2%

Estimated (1) food & paper, payroll & employee benefits, occupancy & other operating expenses1-year 3.8% 3.9% 7.5% (2) Interest expense includes interest expense and other for sake of consistency2-year CAGR 5.0% 5.4% 9.0% (3) Analyst: Jason West from DBLong-term 3.5%


Growth Rates

Options/Warrants




Notes


Company operates and franchises resturants at varing degrees of quality all around the world. They focus on being quick and efficient.




Trading Multiples


Chipotle (NYSE:CMG)Input Page($ in millions, except per share data)

Company Name Chipotle Prior Current 2012A 12/31/2012

Ticker CMG Fiscal Year Ending December 31, Stub Stub LTM Cash and Cash Equivalents - $322.6

Stock Exchange NYSE 2010A 2011A 2012A NA 12/31/2012 12/31/2012 Accounts Receivable - 16.8


Moody's Corporate Rating NA COGS 1,014.7 1,281.8 1,532.8 - - 1,532.8 Prepaids and Other Current Assets - 196.2

S&P Corporate Rating NA Gross Profit $821.2 $987.7 $1,198.4 - - $1,198.4 Total Current Assets - $546.6 Predicted Beta 0.86 SG&A 118.6 149.4 183.4 - - 183.4 Marginal Tax Rate 39.3% Other Expense / (Income) 414.8 487.7 559.1 - - 559.1 Property, Plant and Equipment, net - 866.7

EBIT $287.8 $350.6 $455.9 - - $455.9 Goodwill and Intangible Assets - 21.9 Interest Expense (1.2) 0.9 (1.8) - - (1.8) Other Assets - 233.4


% of 52-week High 74.2% Income Taxes 110.1 134.8 179.7 - - 179.7 52-week High Price 442.40 Noncontrolling Interest - - - - - - Accounts Payable - 58.7


Dividend Per Share (MRQ) - Net Income $179.0 $214.9 $278.0 - - $278.0 Other Current Liabilities - 71.9





Less: Cash and Cash Equivalents (322.6) Reported Gross Profit $821.2 $987.7 $1,198.4 - - $1,198.4 Preferred Stock - -


Adj. Gross Profit $821.2 $987.7 $1,198.4 - - $1,198.4 Total Liabilities and Equity - $1,668.7














(EBITDA-capex)/Interest Expense (188.4x) Issue 1 - - - -



Historical Total -

1-year 20.3% 26.9% 29.3% 2-year CAGR 22.0% 23.0% 24.5%

Estimated (1) Interest expense includes interest expense1-year 16.3% 14.7% 17.4% (2) Analyst report by Jason West from DB2-year CAGR 16.3% 17.4% 20.3% Long-term -


Growth Rates

Options/Warrants




Notes


Aims to be a fast casual experience. Serving mexican food with slightly higher than average quality. Operates all across the U.S.




Trading Multiples


Jack in the Box (NASDAQ:JACK)Input Page


Company Name Jack in the Box Prior Current 2012A 1/20/2013

Ticker JACK Fiscal Year Ending September 30, Stub Stub LTM Cash and Cash Equivalents $8.5 $9.5

Stock Exchange NASDAQ 2010A 2011A 2012A 1/22/2012 1/20/2013 1/20/2013 Accounts Receivable 78.8 40.5

Fiscal Year Ending 9/30/2012 Sales $1,899.6 $1,662.3 $1,545.0 $457.9 $465.5 $1,552.6 Inventories 7.8 8.2

Moody's Corporate Rating NA COGS 1,035.8 875.3 754.2 228.9 220.2 745.4 Prepaids and Other Current Assets 32.8 20.5

S&P Corporate Rating NA Gross Profit $863.8 $787.1 $790.9 $229.0 $245.4 $807.2 Total Current Assets $127.8 $78.8 Predicted Beta 0.86 SG&A 243.5 224.7 227.0 65.7 67.3 228.6 Marginal Tax Rate 32.7% Other Expense / (Income) 497.6 418.5 456.7 139.0 141.6 459.3 Property, Plant and Equipment, net 820.8 799.1





Dividend Per Share (MRQ) - Net Income $70.2 $80.6 $57.7 $12.0 $20.7 $66.4 Other Current Liabilities 16.0 21.0




Plus: Total Debt 374.9 Total Liabilities $1,051.8 $952.1 Plus: Preferred Stock - Plus: Noncontrolling Interest - Noncontrolling Interest - -



Adj. Gross Profit $863.8 $787.1 $790.9 $229.0 $245.4 $807.2 Total Liabilities and Equity $1,463.7 $1,377.3









Return on Invested Capital 14.9% Non-recurring Items in COGS - - - - - - Tranche 1 3.709 $23.90 3.709 $88.7 Return on Equity 15.3% Other Non-recurring Items - - - - - - Tranche 2 - - - - Return on Assets 4.5% Non-operating Non-rec. Items - - - - (3.3) (3.3) Tranche 3 - - - - Implied Annual Dividend Per Share - Tax Adjustment - - - - 1.1 1.1 Tranche 4 - - - -


% margin 3.7% 4.8% 3.7% 2.6% 4.0% 4.1% Total 3.709 3.709 $88.7






Historical Total -

1-year (7.1%) (14.6%) (20.3%) 2-year CAGR (9.8%) (4.4%) 1.0%

Estimated (1) Interest expense includes interest expense1-year (0.3%) 12.5% 28.6% 2-year CAGR 1.3% 12.0% 26.4% Long-term 2.0%



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Notes


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The company focuses on a fast casual restaurant experience, and operates in 42 states across the U.S.. The company owns Quodoba Mexican Grill.



Red Robin Gourmet Burgers (NASDAQ:RRGB)Input Page($ in millions, except per share data)

Company Name Red Robin Gourmet Burgers Prior Current 2012A 12/30/2012

Ticker RRGB Fiscal Year Ending December 30, Stub Stub LTM Cash and Cash Equivalents - $22.4





EBIT $9.8 $28.0 $42.5 - - $42.5 Goodwill and Intangible Assets - 99.7 Interest Expense 5.1 5.9 5.7 - - 5.7 Other Assets - 9.6


% of 52-week High 93.8% Income Taxes (2.6) 1.5 8.5 - - 8.5 52-week High Price 46.94 Noncontrolling Interest - - - - - - Accounts Payable - 18.9



Effective Tax Rate (54.3%) 6.8% 23.1% NA NA 23.1% Total Current Liabilities - $102.3


Equity Value $625.4 Weighted Avg. Diluted Shares 15.7 15.4 14.7 - - 14.7 Total Debt - 134.2 Diluted EPS $0.46 $1.34 $1.93 NA NA NA Other Long-Term Liabilities - 53.7







EV/Sales 0.8x 0.7x 0.7x Non-recurring Items in COGS - - - - - - Basic Shares Outstanding 14.025 Metric $977.1 $1,017.9 $1,098.4 Other Non-recurring Items - - - - - - Plus: Shares from In-the-Money Options 0.435














Historical Total -

1-year 6.8% 17.7% 44.1% 2-year CAGR 6.3% 21.3% 103.9%

Estimated1-year 4.2% 3.4% 6.7% 2-year CAGR 6.0% 9.2% 12.6% Long-term 6.0%


Offers casual dining experience, offering a diverse menu. They operate in the U.S. and Canada. They have been around since 1979.





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Notes


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Cracker Barrel (Nasdaq:CBRL)Input Page


Company Name Cracker Barrel Prior Current 2012A 2/1/2013

Ticker CBRL Fiscal Year Ending June 27, Stub Stub LTM Cash and Cash Equivalents $152.0 $187.0

Stock Exchange Nasdaq 2010A 2011A 2012A 1/27/2012 2/1/2013 2/1/2013 Accounts Receivable 14.6 13.3

Fiscal Year Ending 6/27/2012 Sales $2,404.5 $2,434.4 $2,580.2 $1,271.7 $1,330.1 $2,638.6 Inventories 143.3 139.6

Moody's Corporate Rating NA COGS 745.8 772.5 827.5 421.7 442.0 847.8 Prepaids and Other Current Assets 27.5 28.4

S&P Corporate Rating NA Gross Profit $1,658.7 $1,662.0 $1,752.7 $850.0 $888.1 $1,790.8 Total Current Assets $337.3 $368.4 Predicted Beta 0.85 SG&A 145.9 139.2 146.2 73.9 69.5 141.8 Marginal Tax Rate 29.5% Other Expense / (Income) 1,348.1 1,355.6 1,415.6 684.1 716.1 1,447.5 Property, Plant and Equipment, net 1,022.4 1,017.9

EBIT $164.7 $167.2 $191.0 $92.0 $102.5 $201.5 Goodwill and Intangible Assets - - Interest Expense 49.0 51.5 44.7 22.2 21.0 43.5 Other Assets 59.3 59.3




Dividend Per Share (MRQ) 0.97 Net Income $85.3 $85.2 $103.1 $49.4 $58.4 $112.0 Other Current Liabilities 178.0 184.2




Plus: Total Debt 512.5 Total Liabilities $1,036.3 $1,011.3 Plus: Preferred Stock - Plus: Noncontrolling Interest - Noncontrolling Interest - -

Less: Cash and Cash Equivalents (187.0) Reported Gross Profit $1,658.7 $1,662.0 $1,752.7 $850.0 $888.1 $1,790.8 Preferred Stock - -


Adj. Gross Profit $1,658.7 $1,662.0 $1,752.7 $850.0 $888.1 $1,790.8 Total Liabilities and Equity $1,419.0 $1,445.6











% margin 3.5% 3.5% 4.0% 3.9% 4.4% 4.2% Total 0.342 0.342 $11.5






Historical Total -

1-year 6.0% 11.1% 22.1% 2-year CAGR 3.6% 6.4% 10.4%

Estimated (1) Interest expense includes interest expense1-year 6.0% 15.7% 38.5% (2) Analyst Stephen Anderson Miller Tabak & Co2-year CAGR 5.1% 12.0% 25.4% Long-term -


Cracker Barrel Old Country Store, Inc. develops and operates the Cracker Barrel Old Country Store restaurant and retail concept in the United States. Its restaurants provide breakfast, lunch, and dinner. The company’s gift shops offer various decorative and functional items





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Del Frisco (NasdaqGS:DFRG)Input Page


Company Name Del Frisco Prior Current 2012A 12/25/2012

Ticker DFRG Fiscal Year Ending December 25, Stub Stub LTM Cash and Cash Equivalents - $10.8

Stock Exchange NasdaqGS 2010A 2011A 2012A NA 12/25/2012 12/25/2012 Accounts Receivable - 3.3






% of 52-week High 85.3% Income Taxes (0.1) 4.7 5.6 - - 5.6 52-week High Price 19.00 Noncontrolling Interest - - - - - - Accounts Payable - 8.8



Effective Tax Rate (1.0%) 32.5% 27.7% NA NA 27.7% Total Current Liabilities - $33.8


Equity Value $385.7 Weighted Avg. Diluted Shares 18.0 18.0 20.4 - - 20.4 Total Debt - - Diluted EPS $0.49 $0.54 $0.71 NA NA NA Other Long-Term Liabilities - 46.7







EV/Sales 1.6x 1.3x 1.2x Non-recurring Items in COGS - - - - - - Basic Shares Outstanding 23.795 Metric $232.4 $280.8 $308.3 Other Non-recurring Items - - 5.5 - - 5.5 Plus: Shares from In-the-Money Options -

EV/EBITDA 9.7x 8.6x 7.7x Adjusted EBIT $20.6 $23.3 $30.1 - - $30.1 Less: Shares Repurchased -

Metric $38.8 $43.8 $48.4 % margin 12.6% 11.7% 13.0% NA NA 13.0% Net New Shares from Options - EV/EBIT 12.4x 11.4x 10.3x Plus: Shares from Convertible Securities -




Return on Invested Capital 36.1% Non-recurring Items in COGS - - - - - - Tranche 1 - - - - Return on Equity 21.7% Other Non-recurring Items - - 5.5 - - 5.5 Tranche 2 - - - - Return on Assets 14.9% Non-operating Non-rec. Items (0.0) (0.7) (0.8) - - (0.8) Tranche 3 - - - - Implied Annual Dividend Per Share - Tax Adjustment - - - - - - Tranche 4 - - - -


% margin 5.4% 4.5% 8.3% NA NA 8.3% Total - - -






Historical Total -

1-year 17.0% 28.2% 89.2% 2-year CAGR 19.5% 19.8% 39.4%

Estimated (1) Interest expense includes interest expense-affiliates, interest expense-other, writeoff of debt issuance costs, other1-year 20.8% 12.8% 0.7% (2) Analyst: Jason West from DB2-year CAGR 15.2% 11.7% 4.5% (3) Adjustment: discontinued operationsLong-term -


Del Frisco's Restaurant Group, Inc. develops, owns, and operates restaurants in the United States. The company operates restaurants under Del Frisco’s Double Eagle Steak House, Sullivan’s Steakhouse, and Del Frisco’s Grille names. Its restaurants offer steaks; and other menu selections, such as chops and fresh seafood.





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Notes


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Options/Warrants



Dine Equity (NYSE:DIN)Input Page


Company Name Dine Equity Prior Current 2012A 12/31/2012

Ticker DIN Fiscal Year Ending December 31, Stub Stub LTM Cash and Cash Equivalents - $64.5


Fiscal Year Ending 12/31/2012 Sales $1,333.6 $1,075.2 $849.9 - - $849.9 Inventories - -


S&P Corporate Rating NA Gross Profit $429.8 $407.6 $391.9 - - $391.9 Total Current Assets - $294.4 Predicted Beta 2.50 SG&A 160.3 155.8 163.2 - - 163.2 Marginal Tax Rate 34.5% Other Expense / (Income) 110.0 14.1 (80.5) - - (80.5) Property, Plant and Equipment, net - 294.4

EBIT $159.5 $237.7 $309.3 - - $309.3 Goodwill and Intangible Assets - 1,503.6 Interest Expense 171.5 132.7 114.3 - - 114.3 Other Assets 323.0

Current Price 4/18/2013 $68.30 Pre-tax Income ($12.1) $105.0 $194.9 - - $194.9 Total Assets - $2,415.4

% of 52-week High 87.1% Income Taxes (9.3) 29.8 67.2 - - 67.2 52-week High Price 78.39 Noncontrolling Interest (1.2) 1.9 2.7 - - 2.7 Accounts Payable 30.8

52-week Low Price 41.49 Preferred Dividends 28.4 2.6 2.5 - - 2.5 Accrued Liabilities - -

Dividend Per Share (MRQ) - Net Income ($30.0) $70.7 $122.5 - - $122.5 Other Current Liabilities 237.0



Equity Value $1,329.5 Weighted Avg. Diluted Shares 17.2 18.2 18.9 - - 18.9 Total Debt 1,202.1 Diluted EPS ($1.74) $3.89 $6.49 NA NA NA Other Long-Term Liabilities 636.8



Enterprise Value $2,467.1 Non-recurring Items in COGS - - - - - - Shareholders' Equity 308.7

Adj. Gross Profit $429.8 $407.6 $391.9 - - $391.9 Total Liabilities and Equity - $2,415.4








Number of Exercise In-the-MoneyReported Net Income ($30.0) $70.7 $122.5 - - $122.5 Tranche Shares Price Shares Proceeds


Adjusted Net Income ($30.0) $70.7 $122.5 - - $122.5 Tranche 5 - - - -

% margin (2.2%) 6.6% 14.4% NA NA 14.4% Total 0.602 0.602 $21.4

Debt/Total Capitalization 79.6% Total Debt/EBITDA 3.4x Adjusted Diluted EPS ($1.74) $3.89 $6.49 - - $6.49





Historical Total -

1-year (21.0%) 21.1% 66.8% 2-year CAGR (20.2%) 25.7% -

Estimated1-year (25.2%) (30.4%) (47.4%) 2-year CAGR (11.5%) (15.3%) (23.9%) Long-term -


DineEquity, Inc., through its subsidiaries, develops, franchises, and operates full-service restaurant chains in the United States and internationally.





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Notes


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Options/Warrants



Buffalo Wild Wings Inc. (NYSE:BWLD)Input Page


Company Name Buffalo Wild Wings Inc. Prior Current 2012A 12/30/2012

Ticker BWLD Fiscal Year Ending December 30, Stub Stub LTM Cash and Cash Equivalents - $21.3


Fiscal Year Ending 12/30/2012 Sales $613.3 $784.5 $1,040.5 - - $1,040.5 Inventories - 7.8



EBIT $58.4 $74.7 $85.9 - - $85.9 Goodwill and Intangible Assets - 32.4 Interest Expense (0.7) (0.1) (0.8) - - (0.8) Other Assets - 46.6


% of 52-week High 101.8% Income Taxes 18.6 22.5 26.1 - - 26.1 52-week High Price NA 89.90 Noncontrolling Interest - - - - - - Accounts Payable - 36.4

52-week Low Price NA 68.71 Preferred Dividends - - - - - - Accrued Liabilities - 64.0

Dividend Per Share (MRQ) Net Income $40.5 $52.3 $60.6 - - $60.6 Other Current Liabilities - 40.5




Plus: Total Debt - Total Liabilities - $207.7 Plus: Preferred Stock - Plus: Noncontrolling Interest - Noncontrolling Interest -

















(EBITDA-capex)/Interest Expense (24.5x) Issue 1 - - - -



Historical Total -

1-year 32.6% 21.3% 14.6% 2-year CAGR 30.3% 24.4% 21.0%

Estimated1-year 22.0% 19.3% 10.2% 2-year CAGR 19.1% 19.7% 14.2% Long-term -


Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants primarily in the United States. It offers chicken and various food and beverage items, as well as serves bottled beers, wines, and liquor. As of December 30, 2012, the company owned and operated 381 company-owned restaurants, and franchised an additional 510 Buffalo Wild Wings





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Notes


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Options/Warrants



Cheescake Factory Incorporated (NYSE:CAKE)Input Page


Company Name Cheescake Factory Incorporated Prior Current 2012A 1/1/2013

Ticker CAKE Fiscal Year Ending January 1, Stub Stub LTM Cash and Cash Equivalents - $83.6


Fiscal Year Ending 1/1/2013 Sales $1,659.4 $1,757.6 $1,809.0 - $1,809.0 Inventories - 28.8


S&P Corporate Rating NA Gross Profit $1,246.5 $1,309.2 $1,358.9 - - $1,358.9 Total Current Assets - $230.3 Predicted Beta 0.92 SG&A 710.0 747.3 780.6 - - 780.6 Marginal Tax Rate 26.3% Other Expense / (Income) 408.4 428.4 439.6 - - 439.6 Property, Plant and Equipment, net - 764.4



% of 52-week High 97.1% Income Taxes 29.4 33.4 35.6 - - 35.6 52-week High Price 3/28/2013 38.71 Noncontrolling Interest - - - - - - Accounts Payable - 47.0

52-week Low Price 4/10/2012 28.58 Preferred Dividends - - - - - - Accrued Liabilities - 126.6

Dividend Per Share (MRQ) 0.24 Net Income $81.7 $95.8 $98.4 - - $98.4 Other Current Liabilities - 79.5



Equity Value $2,080.5 Weighted Avg. Diluted Shares 60.4 58.2 55.2 - - 55.2 Total Debt - 55.1 Diluted EPS $1.35 $1.65 $1.78 NA NA NA Other Long-Term Liabilities - 204.3


Less: Cash and Cash Equivalents (83.6) Reported Gross Profit $1,246.5 $1,309.2 $1,358.9 - - $1,358.9 Preferred Stock - -


Adj. Gross Profit $1,246.5 $1,309.2 $1,358.9 - - $1,358.9 Total Liabilities and Equity - $1,092.2

















Historical Total -

1-year 2.9% 3.7% 8.3% 2-year CAGR 4.4% 3.1% 14.8%



The Cheesecake Factory Incorporated owns and operates upscale, casual dining, full-service restaurants. It also produces baked desserts and other products for its restaurants, as well as for other foodservice operators, retailers, and distributors.





Growth Rates

Notes


Trading Multiples


Options/Warrants



Darden Restaurants, Inc (NYSE:DRI)Input Page


Company Name Darden Restaurants, Inc Prior Current 2013A 2/24/2013

Ticker DRI Fiscal Year Ending May 27, Stub Stub LTM Cash and Cash Equivalents - $103.9

Stock Exchange NYSE 2010A 2011A 2012A 2/26/2012 2/24/2013 2/24/2013 Accounts Receivable - 68.1

Fiscal Year Ending 5/27/2012 Sales $7,113.1 $7,500.2 $7,998.7 $5,933.2 $6,253.0 $8,318.5 Inventories - 432.6

Moody's Corporate Rating NA COGS 5,484.0 5,699.5 6,163.2 4,594.3 4,870.8 6,439.7 Prepaids and Other Current Assets - 248.8

S&P Corporate Rating NA Gross Profit $1,629.1 $1,800.7 $1,835.5 $1,338.9 $1,382.2 $1,878.8 Total Current Assets - $853.4 Predicted Beta 0.70 SG&A 684.5 738.0 743.4 568.3 634.1 809.2 Marginal Tax Rate 25.3% Other Expense / (Income) 300.9 316.8 349.1 258.8 292.8 383.1 Property, Plant and Equipment, net - 4,335.0

EBIT $643.7 $745.9 $743.0 $511.8 $455.3 $686.5 Goodwill and Intangible Assets - 904.5 Interest Expense 93.9 93.6 101.6 74.5 92.7 119.8 Other Assets - 864.9

Current Price 4/18/2013 $48.83 Pre-tax Income $549.8 $652.3 $641.4 $437.3 $362.6 $566.7 Total Assets - $6,957.8

% of 52-week High 84.3% Income Taxes 136.6 168.9 161.5 112.3 83.3 132.5 52-week High Price NA 57.93 Noncontrolling Interest - - - - - - Accounts Payable - 324.8


Dividend Per Share (MRQ) 1.72 Net Income $413.2 $483.4 $479.9 $325.0 $279.3 $434.2 Other Current Liabilities - 992.5

Effective Tax Rate 24.8% 25.9% 25.2% 25.7% 23.0% 23.4% Total Current Liabilities - $1,535.4


Equity Value $6,338.7 Weighted Avg. Diluted Shares 142.4 140.3 133.2 133.8 131.4 130.8 Total Debt - 2,502.4 Diluted EPS $2.90 $3.45 $3.60 $2.43 $2.13 $3.30 Other Long-Term Liabilities - 969.7


Less: Cash and Cash Equivalents (103.9) Reported Gross Profit $1,629.1 $1,800.7 $1,835.5 $1,338.9 $1,382.2 $1,878.8 Preferred Stock - -


Adj. Gross Profit $1,629.1 $1,800.7 $1,835.5 $1,338.9 $1,382.2 $1,878.8 Total Liabilities and Equity - $6,957.8



EV/Sales 1.1x 1.0x 1.0x Non-recurring Items in COGS - - - - - - Basic Shares Outstanding 129.812 Metric $8,318.5 $8,535.0 $9,146.0 Other Non-recurring Items - - - - - - Plus: Shares from In-the-Money Options -

EV/EBITDA 8.2x 8.2x 7.9x Adjusted EBIT $643.7 $745.9 $743.0 $511.8 $455.3 $686.5 Less: Shares Repurchased -

Metric $1,063.1 $1,066.0 $1,101.0 % margin 9.0% 9.9% 9.3% 8.6% 7.3% 8.3% Net New Shares from Options - EV/EBIT 12.7x 13.1x 13.1x Plus: Shares from Convertible Securities -


P/E 14.7x 15.3x 15.8x Adjusted EBITDA $939.4 $1,056.7 $1,085.6 $770.6 $748.1 $1,063.1 Metric $3.32 $3.19 $3.10 % margin 13.2% 14.1% 13.6% 13.0% 12.0% 12.8%


Return on Invested Capital 31.6% Non-recurring Items in COGS - - - - - - Tranche 1 - - - Return on Equity 44.5% Other Non-recurring Items - - - - - - Tranche 2 - - - - Return on Assets 12.5% Non-operating Non-rec. Items - - - - - - Tranche 3 - - - - Implied Annual Dividend Per Share 14.1% Tax Adjustment - - - - - - Tranche 4 - - - -


% margin 5.8% 6.4% 6.0% 5.5% 4.5% 5.2% Total - - -






Historical Total -

1-year 6.6% 2.7% 4.6% 2-year CAGR 6.0% 7.5% 11.4%

Estimated1-year 6.7% (1.8%) (11.5%) 2-year CAGR 6.9% 0.7% (7.2%) Long-term -


Darden Restaurants, Inc. owns and operates full service restaurants in the United States and Canada. It operates restaurants under the Red Lobster, Olive Garden, LongHorn Steakhouse, The Capital Grille, Bahama Breeze, Seasons 52, Eddie V's Prime Seafood, and Wildfish Seafood Grille brand names. As of December 20, 2012, it owned and operated approximately 2,000 restaurants. The company was founded in 1968 and is headquartered in Orlando, Florida.





Growth Rates

Notes


Trading Multiples


Options/Warrants



Denny's Corporation (NYSE:DENN)Input Page


Company Name Denny's Corporation Prior Current 2012A 12/26/2012

Ticker DENN Fiscal Year Ending December 26, Stub Stub LTM Cash and Cash Equivalents - $13.6




S&P Corporate Rating NA Gross Profit $192.1 $190.2 $182.3 - - $182.3 Total Current Assets - $64.6 Predicted Beta 1.10 SG&A 73.0 71.4 73.7 - - 73.7 Marginal Tax Rate (70.8%) Other Expense / (Income) 68.4 64.9 51.0 - - 51.0 Property, Plant and Equipment, net - 107.0



% of 52-week High 94.2% Income Taxes 1.4 (84.0) 12.8 - - 12.8 52-week High Price NA 5.86 Noncontrolling Interest - - - - - - Accounts Payable - 24.5



Effective Tax Rate 5.8% (247.1%) 29.0% NA NA 29.0% Total Current Liabilities - $91.8


Equity Value $517.1 Weighted Avg. Diluted Shares 101.4 99.6 96.8 - - 96.8 Total Debt - 161.5 Diluted EPS $0.22 $1.18 $0.32 NA NA NA Other Long-Term Liabilities - 76.1



Enterprise Value $665.0 Non-recurring Items in COGS - - - - - - Shareholders' Equity - (4.5)










Return on Invested Capital 80.3% Non-recurring Items in COGS - - - - - - Tranche 1 3.099 $3.28 3.099 $10.2 Return on Equity (1,395.6%) Other Non-recurring Items - - - - - - Tranche 2 - - - - Return on Assets 19.3% Non-operating Non-rec. Items - - - - - - Tranche 3 - - - - Implied Annual Dividend Per Share - Tax Adjustment - - - - - - Tranche 4 - - - -








Historical Total -

1-year (9.3%) (1.2%) (72.6%) 2-year CAGR (5.6%) 1.0% 20.4%



Denny's Corporation, through its subsidiary, Dennys, Inc., owns and �operates family-style restaurant chains under the Dennys brand name. As of �December 26, 2012, it had 1,688 franchised, licensed, and company operated restaurants, including 1,590 restaurants in the United States; and 98 restaurants in Canada, Costa Rica, Mexico, Honduras, Guam, Curaçao, Puerto Rico, Dominican Republic, and New Zealand. The company was founded in 1980 and is headquartered in Spartanburg, South Carolina.





Growth Rates

Notes


Trading Multiples


Options/Warrants



Precedent Transactions

LTM TEV/Revenue LTM TEV/ EBITDA FYE+1 TEV/Revenue FYE+1 TEV/ EBITDA$400.0

$500.0

$600.0

$700.0

$800.0

$900.0

$1,000.0

$676.4 $663.7 $670.6

$623.6

$885.6 $870.0 $878.5

$821.0

Implied MVE- Financial

LTM TEV/Revenue LTM TEV/EBITDA FYE+1 TEV/Revenue FYE+1 TEV/EBITDA$800.0

$1,000.0

$1,200.0

$1,400.0

$1,600.0

$1,800.0

$2,000.0

$2,200.0

$1,529.7

$1,310.9

$1,520.2

$1,110.6

$1,869.6

$1,602.2

$1,858.0

$1,357.4

Implied MVE- Strategic

3G Capital acquires Burger King Holdings

Company Description:

Burger King Holdings Inc, owns and operates fast food restaurants. The company owned or franchised more than 12,000 restaurants in 75 countries and the United States territories. Its restaurants features flame-broiled hamburgers, chicken and other specialty sandwiches, french fries, soft drinks and other food items.

Rationale:

Burger King is one of the largest fast food restaurants in the world, and is still continuing to grow. Burger King’s growth and sales were very appealing to 3G Capital in this acquisition. This transaction is similar to Ruby Tuesday because they are in similar industries.

TEV: $3798.8

Revenue: $2502.2

EBITDA: $444.6

TEV/Revenue: 1.5x

TEV/EBITDA: 8.5 x

Consideration/Share: $24



Transaction 1

Acquiror 3G Capital

Target Burger King Holdings, Inc.

Announce Date 10/2/2010

Cash Stock Total Premium Recent 10Q Last 10Q Last 10K LTM

Consideration per Share $24.00 $0.00 $24.00

Rev $0.00 $0.00 $2,502.2 $2,502.2

Burger King Holdings, Inc. Stock Price at Announcement Date -1 23.90$ 1 Day 0.4% EBITDA $0.00 $0.00 $444.6 $444.6

Burger King Holdings, Inc. 30 day Avg. Stock Price at Announcement -1 22.10$ 30 Day Avg. 8.6%

Burger King Holdings, Inc. Basic Shares Outstanding 136.5

Burger King Holdings, Inc. FD Shares Outstanding 138.3

Burger King Holdings, Inc. Implied Equity Purchase Price $3,318.7

Plus: Debt 667.7

Preferred 0.0

Minority Interest 0.0

Less: Cash (187.6)

Implied Transaction TEV $3,798.8 Announced TEV

Burger King Holdings, Inc. Description Burger King Holdings, Inc. Dilutive Burger King Holdings, Inc. Dilutive Converted Debt

Options Class Outstanding WA Price Shares Conv. Class Face Amount Conversion Price Shares

A 6.36 $17.16 1.81 A - $0.00

B 0.00 B - $0.00

C 0.00 C - $0.00

D 0.00 D - $0.00

E 0.00 E - $0.00

F 0.00 F - $0.00

Total 6.359 1.81 Total - $0.00

Remove from B/S ------> $0.00

Dilutive Shares Calculation (TSM)

Burger King Holdings Inc, headquartered in Miami, Florida, ow ns and operates fast food restaurants. The company ow ned or franchised more than 12,000 restaurants in 75 countries and the United States territories. Its restaurants features f lame-broiled hamburgers, chicken and other specialty sandw iches, french fries, soft drinks and other food items. Its trademarks include Burger King, Whopper, Have it Your Way and the Burger King Bun halves and crescent logo. It has operations in the United States, Canada, Europe, the Middle East, Africa and Asia Pacif ic and Latin America. The company w as founded in 1954.

Anglo Gordon & CO acquires Benihana Inc.

TEV: $280.1

Revenue: $327.6

EBITDA: $33.0

TEV/Revenue: 0.9x

TEV/EBITDA: 8.5x

Consideration/Share: $16.30



Company Description:Benihana Inc, located in Doral, Florida, is an owner and operator of Japanese concept restaurants in North and South America as well as in the Middle East. It currently owns 63 teppanyaki, 25 RA Sushi restaurants, 9 Haru sushi restaurants and is franchising 22 other teppanyaki restaurants. The company was founded in 1964.

Rationale:Benihana is capitalizing on the growing market for Japanese cuisine which was very appealing to Anglo Gordon & Co. during this acquisition. Benihana and Ruby Tuesday are both in the casual dining segment.

Acquiror Anglo Gordon & Co

Target Benihana Inc.




Rev $259.8 $245.9 $327.6 $341.6

Benihana Inc. Stock Price at Announcement Date -1 12.93$ 1 Day 26.1% EBITDA $19.1 $18.5 $33.0 $33.6

Benihana Inc. 30 day Avg. Stock Price at Announcement -1 13.90$ 30 Day Avg. 17.3%

Benihana Inc. Basic Shares Outstanding 17.9

Benihana Inc. FD Shares Outstanding 18.2

Benihana Inc. Implied Equity Purchase Price $296.3

Plus: Debt 0.0

Preferred 0.0


Less: Cash (16.2)Implied Transaction TEV $280.1 Announced TEV

Benihana Inc. Description Benihana Inc. Dilutive Benihana Inc. Dilutive Converted DebtOptions Class Outstanding WA Price Shares Conv. Class Face Amount Conversion Price Shares

A 0.72 $10.55 0.25 A - $0.00B 0.00 B - $0.00C 0.00 C - $0.00D 0.00 D - $0.00E 0.00 E - $0.00F 0.00 F - $0.00Total 0.722 0.255 Total - $0.00


Transaction 2


Benihana Inc, located in Doral, Florida, is an ow ner and operator of Japanese concept restaurants in North and South America as w ell as in the Middle East. It currently ow ns 63 teppanyaki, 25 RA Sushi restaurants, 9 Haru sushi restaurants and is franchising 22 other teppanyaki restaurants. The company w as founded in 1964.

Planet Hollywood Acquirers BUCA Inc.

TEV: $24.7

Revenue: $242.8

EBITDA: ($4.1)

TEV/Revenue: 0.1x

TEV/EBITDA: -6.1x




Company Description:Buca Inc located in Minneapolis, Minnesota, owns and operates 88 full-service Italian restaurants under the name Bucca di Beppo. The company was founded in 1996.

Rationale: At the time of the acquisition, Buca was struggling financially. The acquisition was appealing to Planet Hollywood because both restaurants focus on both food and experience. Ruby Tuesday also focuses on these two things.

Acquiror Planet Hollyw ood

Target BUCA, Inc.Announce Date 8/5/2008

Cash Stock Total Premium Recent 10Q Last 10Q Last 10K LTMConsideration per Share $0.00 $0.45 $0.45

Rev $60.1 $62.8 $245.6 $242.8BUCA, Inc. Stock Price at Announcement Date -1 0.32$ 1 Day 40.6% EBITDA ($0.9) $0.8 ($2.4) ($4.1)

BUCA, Inc. 30 day Avg. Stock Price at Announcement -1 0.36$ 30 Day Avg. 25.7%BUCA, Inc. Basic Shares Outstanding 21.5

BUCA, Inc. FD Shares Outstanding 21.5BUCA, Inc. Implied Equity Purchase Price $9.7

Plus: Debt 15.9

Preferred 0.0



BUCA, Inc. Description BUCA, Inc. Dilutive BUCA, Inc. Dilutive Converted DebtOptions Class Outstanding WA Price Shares Conv. Class Face Amount Conversion Price Shares

A 2.05 $6.12 0.00 A - $0.00

B 0.00 B - $0.00

C 0.00 C - $0.00

D 0.00 D - $0.00

E 0.00 E - $0.00F 0.00 F - $0.00Total 2.045 - Total - $0.00


Transaction 3


Buca Inc located in Minneapolis, Minnesota, ow ns and operates 88 full-service Italian restaurants under the name Bucca di Beppo. The company w as founded in 1996.

Darden Restaurants Inc Acquires Yard House USA

TEV: $585

Revenue: $262.0

EBITDA: $29.0

TEV/Revenue: 2.2x

TEV/EBITDA: 20.2x

Consideration/Share: NA

1 Day Control Premium: NA


Company Description:Yard House USA, Inc. owns and operates a chain of restaurants in the United States. Its restaurants offer snacks, appetizers, soups, appetizer salads, entree salads, sandwiches, burgers, pizzas, house favorites, seafood, steaks and ribs, desserts, wines, beers, and house martinis and drinks.

Rationale:Darden Restaurants owns several restaurant chains, and Yard House adds to their portfolio of restaurants. Yard House is in the same industry as Ruby Tuesday.

Acquiror Darden Restaurants, Inc.

Target Yard House USA, Inc.



Consideration per Share $216,346.15 Input $216,346.15

Rev $0.00 $0.00 $262.0 262.0

Yard House USA, Inc. Stock Price at Announcement Date -1 1 Day NA EBITDA $0.00 $0.00 $29.00 $29.0

Yard House USA, Inc. 30 day Avg. Stock Price at Announcement -1 30 Day Avg. NA

Yard House USA, Inc. Basic Shares Outstanding

Yard House USA, Inc. FD Shares Outstanding 0.0

Yard House USA, Inc. Implied Equity Purchase Price $0.0

Plus: Debt Input

Preferred Input INPUT IF IMPLIED TEV = NA

Minority Interest Input

Less: Cash Input

Implied Transaction TEV NA Announced TEV $585.0

Yard House USA, Inc. Description Yard House USA, Inc. Dilutive Yard House USA, Inc. Dilutive Converted Debt


A 0.000 $0.00 0.00 A $0.0 $0.00 - $0.00

B 0.00 B - $0.00

C 0.00 C - $0.00

D 0.00 D - $0.00

E 0.00 E - $0.00

F 0.00 F - $0.00

Total - - Total - $0.00



Yard House USA, Inc. ow ns and operates a chain of restaurants in the United States. Its restaurants offer snacks, appetizers, soups, appetizer salads, entree salads, sandw iches, burgers, pizzas, house favorites, seafood, steaks and ribs, desserts, w ines, beers, and house martinis and drinks. The company w as founded in 1996 and is based in Irvine, California. Yard House USA, Inc. has restaurant locations in Arizona, California, Colorado, Florida, Haw aii, Illinois, Kansas, Massachusetts, Nevada, and Texas. As of August 29, 2012, Yard House USA, Inc. operates as a subsidiary of Darden Restaurants, Inc.

Darden Restaurants Acquires RARE Hospitality

TEV: $1442.5

Revenue: $986.9

EBITDA: $113.1

TEV/Revenue: 12.8x

TEV/EBITDA: 1.5x




Company Description:RARE Hospitality International, Inc., doing business as Longhorn Steakhouse, owns, operates, and franchises restaurants in the United States. It offers a variety of menu items, including signature steaks, salmon, shrimp, chicken, ribs, pork chops, burgers, seafood, prime ribs, and wine.

Rationale:Rare Hospitality adds great value to Darden Restaurants portfolio of restaurant chains. RARE Hospitality and Ruby Tuesday are in the same industry, and serve similar products.

Acquiror Darden Restaurants Inc

Target RARE Hospitality International Inc




Rev $536.81 $498.99 $986.9 $1,024.7

RARE Hospitality International Inc Stock Price at Announcement Date -1 26.75$ 1 Day 42.6% EBITDA $64.58 $63.76 $113.09 $113.9

RARE Hospitality International Inc 30 day Avg. Stock Price at Announcement -1 -$ 30 Day Avg. NA

RARE Hospitality International Inc Basic Shares Outstanding 30.6

RARE Hospitality International Inc FD Shares Outstanding 32.1

RARE Hospitality International Inc Implied Equity Purchase Price $1,224.4

Plus: Debt 179.9

Preferred 0.0 INPUT IF IMPLIED TEV = NA


Less: Cash 37.2Implied Transaction TEV $1,442.5 Announced TEV

RARE Hospitality International Inc Description RARE Hospitality International Inc Dilutive RARE Hospitality International Inc Dilutive Converted DebtOptions Class Outstanding WA Price Shares Conv. Class Face Amount Conversion Price Shares

A 3.701 $22.81 1.49 A $0.0 $0.00 - $0.00B 0.00 B - $0.00C 0.00 C - $0.00D 0.00 D - $0.00E 0.00 E - $0.00F 0.00 F - $0.00Total 3.701 1.49 Total - $0.00



RARE Hospitality International, Inc., doing business as Longhorn Steakhouse, ow ns, operates, and franchises restaurants in the United States. It offers a variety of menu items, including signature steaks, salmon, shrimp, chicken, ribs, pork chops, burgers, seafood, prime ribs, and w ine. The company w as formerly know n as Longhorn Steaks, Inc. and changed its name to RARE Hospitality International, Inc. in January 1997. RARE Hospitality International, Inc. w as incorporated in 1982 and is based in Atlanta, Georgia. RARE Hospitality International, Inc. operates as a subsidiary of GMRI, Inc.

Bain Capital Acquires OSI Restaurant Partners


OSI Restaurant Partners, LLC owns and operates casual and upscale casual dining restaurants primarily in the United States. The company operates restaurants under the Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse and Wine Bar, and Roy’s concepts.

Rationale:

OSI Restaurant Partners was an appealing acquisition to Bain Capital because it broadened their portfolio of restaurants that they already control. Ruby Tuesday and OSI Restaurant Partners are in the same industry.

TEV: $3400.5Revenue: $3769.8EBITDA: $317.1TEV/Revenue: 0.9xTEV/EBITDA: 10.7x

Consideration/Share: $41.151 Day Control Premium: 26.9%30 Day Control Premium: 23.5%

Acquiror Bain Capital, Catterton Partners

Target OSI Restaurant PartnersAnnounce Date 11/5/2006


Rev $1,979.0 $1,810.9 $3,601.7 $3,769.8OSI Restaurant Partners Stock Price at Announcement Date -1 32.43$ 1 Day 26.9% EBITDA $166.1 $210.4 $361.3 $317.1

OSI Restaurant Partners 30 day Avg. Stock Price at Announcement -1 33.33$ 30 Day Avg. 23.5%OSI Restaurant Partners Basic Shares Outstanding 74.4

OSI Restaurant Partners FD Shares Outstanding 77.7OSI Restaurant Partners Implied Equity Purchase Price $3,195.5

Plus: Debt 262.6

Preferred

Minority Interest

Less: Cash (57.6)Implied Transaction TEV $3,400.5 Announced TEV $585.0

OSI Restaurant Partners Description OSI Restaurant Partners Dilutive OSI Restaurant Partners Dilutive Converted DebtOptions Class Outstanding WA Price Shares Conv. Class Face Amount Conversion Price Shares

A 15.49 $32.50 3.26 A - $0.00

B 0.00 B - $0.00

C 0.00 C - $0.00

D 0.00 D - $0.00

E 0.00 E - $0.00F 0.00 F - $0.00Total 15.485 3.255 Total - $0.00



OSI Restaurant Partners, LLC ow ns and operates casual and upscale casual dining restaurants primarily in the United States. The company operates restaurants under the Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse and Wine Bar, and Roy’s concepts. As of December 31, 2011, it ow ned and operated 1,248 restaurants and had 195 restaurants operating under a franchise or joint venture arrangement in 49 states and 21 countries and territories. OSI Restaurant Partners, LLC w as founded in 1987 and is headquartered in Tampa, Florida. OSI Restaurant Partners, LLC operates as a subsidiary of OSI HoldCo, Inc.

Centralbridge Partners AcquiresP.F. Chang’s

TEV: $1398.7

Revenue: $1238.8

EBITDA: $121.4

TEV/Revenue: 1.1x

TEV/EBITDA: 11.5x




Company Description: P.F. Chang's China Bistro, Inc., through its subsidiaries, engages in the ownership and operation of restaurants in the United States. The company owns and operates two restaurant concepts, P.F. Chang's China Bistro and Pei Wei Asian Diner.

Rationale:Centralbridge Partners were attracted to acquire P.F. Chang’s because it is part of the growing China Bistro trend in the United States. P.F Chang’s and Ruby Tuesday are in the same industry.

Acquiror Centralbridge Partners LP

Target P.F. Chang's




Rev $317.37 $318.91 $1,238.8 $1,237.2

P.F. Chang's Stock Price at Announcement Date -1 51.48$ 1 Day 0.0% EBITDA $34.80 $26.49 $121.4 $129.7

P.F. Chang's 30 day Avg. Stock Price at Announcement -1 39.84$ 30 Day Avg. 29.3%

P.F. Chang's Basic Shares Outstanding 21.2

P.F. Chang's FD Shares Outstanding 21.2

P.F. Chang's Implied Equity Purchase Price $1,093.6

Plus: Debt 249.4

Preferred 0.0


Less: Cash 55.7

Implied Transaction TEV $1,398.7 Announced TEV

P.F. Chang's Description P.F. Chang's Dilutive P.F. Chang's Dilutive Converted Debt


A 1.558.259 $44.19 NA A - $0.00

B 0.00 B - $0.00

C 0.00 C - $0.00

D 0.00 D - $0.00

E 0.00 E - $0.00

F 0.00 F - $0.00

Total - - Total - $0.00



P.F. Chang's China Bistro, Inc., through its subsidiaries, engages in the ow nership and operation of restaurants in the United States. The company ow ns and operates tw o restaurant concepts, P.F. Chang's China Bistro and Pei Wei Asian Diner. As of January 1, 2012, it ow ned and operated 204 full service Bistro restaurants and 170 quick-casual Pei Wei restaurants; and operated 15 Bistro restaurants in Mexico, the Middle East and Puerto Rico under development and licensing agreements.

Dine Equity Inc AcquiresApplebees


Applebee's International, Inc. develops, franchises, and operates casual dining restaurants in the United States and internationally. It offers beverages, sweet desserts, burgers and sandwiches, seafood, chicken and pork items, beef, appetizers, and salads.

Rationale:

Dine Equity acquired Applebee’s in order to franchise out the stores. Ruby Tuesday and Applebee’s are in the same industry.

TEV: $2093.4

Revenue: $1337.9

EBITDA: $127.5

TEV/Revenue: 1.6x

TEV/EBITDA: 16.4x




Acquiror DineEquity Inc.

Target Applebees




Rev $338.7 $337.6 $1,337.9 $1,339.0

Applebees Stock Price at Announcement Date -1 24.38$ 1 Day 4.6% EBITDA $42.2 $34.9 $127.5 $134.8

Applebees 30 day Avg. Stock Price at Announcement -1 25.00$ 30 Day Avg. 2.0%

Applebees Basic Shares Outstanding 74.7

Applebees FD Shares Outstanding 75.4

Applebees Implied Equity Purchase Price $1,923.2

Plus: Debt 154.8

Preferred 0.0


Less: Cash 15.3Implied Transaction TEV $2,093.4 Announced TEV

Applebees Description Applebees Dilutive Applebees Dilutive Converted DebtOptions Class Outstanding WA Price Shares Conv. Class Face Amount Conversion Price Shares




Applebee's International, Inc. develops, franchises, and operates casual dining restaurants in the United States and internationally. It offers beverages, sw eet desserts, burgers and sandw iches, seafood, chicken and pork items, beef, appetizers, and salads.

Mill Road Capital AcquiresRubio’s Restaurant


Rubio’s Restaurants, Inc., together with its subsidiaries, owns and operates a chain of Mexican restaurants in the United States. Its restaurants offer Mexican cuisine, including chargrilled chicken, steak, and fresh seafood items, such as burritos, tacos, and quesadillas.

Rationale:

Mill Road Capital bought Rubio’s in order to capitalize on the growing trend of chain Mexican restaurants in the United States. Rubio’s are in the same industry.

TEV: $98.2Revenue: $188.9EBITDA: $11.9TEV/Revenue: 0.5xTEV/EBITDA: 8.3x

Consideration/Share: $8.701 Day Control Premium:13.6%30 Day Control Premium: 7.1%

Acquiror Mill Road Capital

Target Rubio's Restaurant




Rev $48.51 $48.67 $188.9 $188.7

Rubio's Restaurant Stock Price at Announcement Date -1 7.66$ 1 Day 13.6% EBITDA $1.71 $3.21 $11.9 $10.4

Rubio's Restaurant 30 day Avg. Stock Price at Announcement -1 8.12$ 30 Day Avg. 7.1%

Rubio's Restaurant Basic Shares Outstanding 10.0

Rubio's Restaurant FD Shares Outstanding 10.2

Rubio's Restaurant Implied Equity Purchase Price $88.7

Plus: Debt 0.0

Preferred 0.0


Less: Cash 9.5

Implied Transaction TEV $98.2 Announced TEV

Rubio's Restaurant Description Rubio's Restaurant Dilutive Rubio's Restaurant Dilutive Converted Debt


A 1.70 $7.87 0.16 A - $0.00

B 0.00 B - $0.00

C 0.00 C - $0.00

D 0.00 D - $0.00

E 0.00 E - $0.00

F 0.00 F - $0.00

Total 1.705 0.16 Total - $0.00



Rubio’s Restaurants, Inc., together w ith its subsidiaries, ow ns and operates a chain of Mexican restaurants in the United States. Its restaurants offer Mexican cuisine, including chargrilled chicken, steak, and fresh seafood items, such as burritos, tacos, and quesadillas.

Columbia Lake AcquiresCKE Restaurants

TEV: $950.4

Revenue: $1418.7

EBITDA: $150.6

TEV/Revenue: 0.7x

TEV/EBITDA: 6.3x




Company Description: CKE Restaurants, Inc. through its wholly-owned subsidiaries, owns, operates, franchises and licenses the Carl’s Jr., Hardee’s, Green Burrito and Red Burrito concepts. CKE owns, operates, franchises and/or licenses more than 3,100 quick-service restaurants

Rationale:Columbia Lake acquired CKE Restaurants in order to capitalize on the growing quick-service restaurant segment given the weak economy. CKE Restaurant and Ruby Tuesday are in the same industry.

Acquiror Columbia Lake Acquisition Holdings

Target CKE Restaurants




Rev $0.00 $0.00 $1,418.7 $1,418.7

CKE Restaurants Stock Price at Announcement Date -1 12.46$ 1 Day 0.7% EBITDA $0.00 $0.00 $150.6 $150.6

CKE Restaurants 30 day Avg. Stock Price at Announcement -1 12.39$ 30 Day Avg. 1.3%

CKE Restaurants Basic Shares Outstanding 55.3

CKE Restaurants FD Shares Outstanding 56.0

CKE Restaurants Implied Equity Purchase Price $702.4

Plus: Debt 266.2

Preferred 0.0


Less: Cash (18.2)

Implied Transaction TEV $950.4 Announced TEV

CKE Restaurants Description CKE Restaurants Dilutive CKE Restaurants Dilutive Converted Debt


A 4.43 $10.63 0.68 A - $0.00

B 0.00 B - $0.00

C 0.00 C - $0.00

D 0.00 D - $0.00

E 0.00 E - $0.00

F 0.00 F - $0.00

Total 4.434 0.68 Total - $0.00


CKE Restaurants, Inc. (“CKE” or the “Company”), through its w holly-ow ned subsidiaries, ow ns, operates, franchises and licenses the Carl’s Jr.®, Hardee’s®, Green Burrito® and Red Burrito® concepts. CKE ow ns, operates, franchises and/or licenses more than 3,100 quick-service restaurants (“QSR”), primarily under the brand names Carl’s Jr.® and Hardee’s®, both of w hich offer innovative, premium products intended to appeal to our target audience of “young, hungry guys.”


Golden Gate Capital Acquires California Pizza Kitchen

TEV: $451.5

Revenue: $642.2

EBITDA: $30.8

TEV/Revenue: 0.7x

TEV/EBITDA: 14.7x




Company Description: California Pizza Kitchen, Inc. owns and operates full-service restaurants in the United States, China, Guam, India, Japan, Korea, Malaysia, Mexico, the Philippines, Singapore, Taiwan, and the United Arab Emirates. Its restaurants offer pizzas, pastas, soups, sandwiches, appetizers, and desserts.

Rationale:Golden Gate Capital acquired California Pizza Kitchen as they continue to grow. California Pizza Kitchen now sells their products in grocery stores, and are opening more stores internationally. CPK and Ruby Tuesday are in the same industry.

Acquiror Golden Gate Capital

Target Califormnia Pizza Kitchen




Rev $156.0 $154.4 $642.2 $643.8

Califormnia Pizza Kitchen Stock Price at Announcement Date -1 16.71$ 1 Day 10.7% EBITDA $11.8 $12.6 $30.8 $30.0

Califormnia Pizza Kitchen 30 day Avg. Stock Price at Announcement -1 16.09$ 30 Day Avg. 15.0%

Califormnia Pizza Kitchen Basic Shares Outstanding 24.6

Califormnia Pizza Kitchen FD Shares Outstanding 25.3

Califormnia Pizza Kitchen Implied Equity Purchase Price $468.6

Plus: Debt 0.0

Preferred 0.0



Califormnia Pizza Kitchen Description Califormnia Pizza Kitchen Dilutive Califormnia Pizza Kitchen Dilutive Converted DebtOptions Class Outstanding WA Price Shares Conv. Class Face Amount Conversion Price Shares




California Pizza Kitchen, Inc. ow ns and operates full-service restaurants in the United States, China, Guam, India, Japan, Korea, Malaysia, Mexico, the Philippines, Singapore, Taiw an, and the United Arab Emirates. Its restaurants offer pizzas, pastas, soups, sandw iches, appetizers, and desserts. The company also serves travelers on the go and sports fans by operating locations at airports, sports stadiums, and universities in the United States, as w ell as sells its products through grocery stores.

G&R Capital AcquiresMax & Erma’s

TEV: $7.6

Revenue: $174.5

EBITDA: $5.3

TEV/EBITDA: 1.4x




Company Description: Max & Ermas Restaurants Inc. engages in the ownership, operation, and franchising of restaurants in the United States. The company was founded in 1971 and is headquartered in Columbus, Ohio. As of September 15, 2010, Max & Erma’s Restaurants Inc. operates as a subsidiary of American Blue Ribbon Holdings, LLC.

Rationale:Max & Erma’s was struggling financially and actively sought out strategic alternatives for the company. G &R Capital benefit from this deal and chose to take the company private. Max and Erma’s and Ruby Tuesday are in the same industry.

Acquiror G&R Capital

Target Max & ErmaAnnounce Date 4/28/2008


Rev $55.2 $55.5 $174.9 $174.5Max & Erma Stock Price at Announcement Date -1 2.92$ 1 Day 37.0% EBITDA $2.5 $4.3 $7.1 $5.3

Max & Erma 30 day Avg. Stock Price at Announcement -1 2.69$ 30 Day Avg. 48.7%Max & Erma Basic Shares Outstanding 2.6

Max & Erma FD Shares Outstanding 2.6Max & Erma Implied Equity Purchase Price $10.2

Plus: Debt 0.0

Preferred 0.0



Max & Erma Description Max & Erma Dilutive Max & Erma Dilutive Converted DebtOptions Class Outstanding WA Price Shares Conv. Class Face Amount Conversion Price Shares

A 0.00 A - $0.00

B 0.00 B - $0.00

C 0.00 C - $0.00

D 0.00 D - $0.00

E 0.00 E - $0.00F 0.00 F - $0.00Total - - Total - $0.00



Max & Ermas Restaurants Inc. engages in the ow nership, operation, and franchising of restaurants in the United States. The company w as founded in 1971 and is headquartered in Columbus, Ohio. As of September 15, 2010, Max & Ermas Restaurants Inc. operates as a subsidiary of American Blue Ribbon Holdings, LLC.

LBO Model

LBO Analysis Ruby Tuesday($ in millions)

TRANSACTION ASSUMPTIONSClosing Date 5-Jun-122012 EBITDA (Adjusted) $102.0EBITDA Multiple 8.0 xTransaction (Enterprise) Value $816.0 Less: Existing Debt ($326.7) Plus: Cash $48.2Implied Equity Purchase Price $537.5

TOTAL USES TOTAL SOURCESAmount EBITDA % of Interest Rate % of Fully

Uses Capitalization Funded Multiple Capitalization Cash Pay PIK Diluted EquityEquity Purchase Price $537.5 Cash $48.2 5.5%Paydown Existing Debt $326.7 Revolver 102.0 1.0 x 11.6% 5.00% 0.00% 0.00%Financing Fees $8.00 Term Loan 153.0 1.5 x 17.4% 6.25% 0.00% 0.00%Investment Banking Fees $4.00 Senior Bonds 102.0 1.0 x 11.6% 8.50% 0.00% 0.00%Legal Fees $1.00 Unsecured Notes with Warrants 102.0 1.0 x 11.6% 0.00% 10.00% 5.00%Other Fees and Expenses $1.00 Total Debt 459.0 4.5x 52.3%

Sponsor Equity 371.0 42.2%Total Uses $878.2 Total Sources $878.2 100.0%

SALE OF COMPANY A IN 2017Closing Date 4-Jun-17 IRR to Financial Sponsor 6/5/12 6/5/13 6/5/14 6/5/15 6/4/16 6/4/17

Initial Equity Investment ($371.0) $0.0 $0.0 $0.0 $0.0 $0.02017 EBITDA $134.4 Dividends 0.0 0.0 0.0 0.0 0.0 0.0EBITDA Multiple 8.5 x Proceeds at Sale 0.0 0.0 0.0 0.0 0.0 779.2Transaction Value $1,142.2 Total Cash Flows to Sponsor ($371.0) $0.0 $0.0 $0.0 $0.0 $779.2Less: Total Debt (344.3) IRR Calculation 16.0%Plus: Cash Balance 35.6

Less: Transaction Fees (1) (13.4) IRR to Unsecured Lender 6/5/12 6/5/13 6/5/14 6/5/15 6/4/16 6/4/17Equity Value $820.2 Initial Loan ($102.0) $0.0 $0.0 $0.0 $0.0 $0.0% Equity to Sponsor 95.0% Cash Interest Received 0.0 0.0 0.0 0.0 0.0 0.0Equity to Sponsor $779.2 Principal Repayment at Sale 0.0 0.0 0.0 0.0 0.0 164.3

Equity from Warrants at Sale 0.0 0.0 0.0 0.0 0.0 41.0% Equity to Unsecured Lender 5.0% Total Cash Flows to Lender ($102.0) $0.0 $0.0 $0.0 $0.0 $205.3Equity to Unsecured Lender $41.0 IRR Calculation 15.0%

(1) Assumes 1% of Purchase Price for Investment Banking Fees, plus $2 million in legal and other expenses.

Ruby Tuesday Pro Forma Balance Sheet Adjustments($ in millions)

Historical Financing/ ProformaBalance Sheet Jun. 5 Transaction Jun. 6Assets 2012 Adjustments 2012Cash $48.2 ($48.2) $0.0Accounts Receivable $5.5 0.0 5.5Inventory $29.0 0.0 29.0Other Current Assets $45.5 0.0 45.5 Total Current Assets $128.3 ($48.2) $80.1

Gross PP&E $1,558.6 $0.0 $1,558.6Cumulative Depreciation $592.0 0.0 592.0Net PP&E $966.6 $0.0 $966.6

Other Assets $70.7 $0.0 $70.7Amortizable Intangibles $0.0 $8.0 $8.0Goodwill 8.0 (38.7) (30.7)Total Assets $1,173.5 ($78.9) $1,094.7

LiabilitiesAccounts Payable $34.9 $0.0 $34.9Accrued Liabilities $76.1 0.0 $76.1Other Current Liabilities $46.3 0.0 46.3 Total Current Liabilities $157.3 $0.0 $157.3

Existing DebtRevolving Credit Facility $0.0 $0.0 $0.0Term Loan $80.3 ($80.3) $0.0Unsecured Debt $246.4 ($246.4) $0.0

New DebtRevolving Credit Facility $102.0 $102.0Term Loan $153.0 $153.0Senior Bonds $102.0 $102.0Unsecured Debt $102.0 $102.0

Other Liabilities $113.3 $0.0 $113.3 Total Liabilities $597.3 $132.3 $729.7

Shareholders EquityRetained Earnings $499.0 ($505.0) ($6.0)Common Stock 77.2 $293.8 371.0 Total Shareholders Equity $576.2 ($211.2) $365.0

Total Liabilities and Equity $1,173.5 ($78.9) $1,094.7 Check $0.0 $0.0 $0.0

Goodwill Calculation

Equity Purchase Price $537.5Less: Book Value of Equity (576.2)

New Goodwill ($38.7)

Amortizable Intangibles Calculation

Financing Fees $8.0New Intangible Assets $8.0

Transaction Fees (excl. Financing Fees) Calculation

Investment Banking Fees $4.0Legal Fees 1.0Other Fees and Expenses 1.0Transaction Fees to be Expensed at Closing $6.0

Ruby Tuesday FINANCIAL MODEL ASSUMPTIONSHISTORIC VARIABLES AND ASSUMPTIONS FOR PROJECTIONS

ASSUMPTIONS FOR PROJECTIONSFiscal Year Ending December 31,

2009A 2010A 2011A 2012A 2013P 2014P 2015P 2016P 2017PIncome Statement Drivers / AssumptionsRevenue Growth Rate NA -4.3% 5.9% 4.8% -2.0% 0.3% 0.8% 1.3% 1.5%

COGS as % of Revenue 82.2% 82.2% 82.6% 83.4% 80.5% 81.0% 82.0% 83.0% 83.0%

Depreciation as % of Gross PP&E 5.2% 4.4% 3.9% 4.2% 4.5% 4.0% 4.0% 4.0% 4.0%Amortization $0.0 $0.0 $0.0 $0.0 $1.6 $1.6 $1.6 $1.6 $1.6Amortization Years 5SG&A as % of Sales 12.5% 6.2% 7.3% 11.3% 11.5% 10.2% 8.7% 8.0% 8.0%

Other Income / (Expense) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

Tax Rate 58.2% 21.5% 10.9% 98.7% 35.0% 35.0% 35.0% 35.0% 35.0%

Balance Sheet Drivers / AssumptionsDays Accounts Receivable 5 3 3 2 2.5 2.5 2.5 2.5 2.5Days Inventory 7 11 12 9 8.5 9.5 10.0 10.0 10.0Other Current Assets $45.5 $28.2 $28.6 $45.5 $40.0 $33.0 $25.0 $20.0 $20.0Other Assets $0.0 $0.0 $0.0 $0.0 $75.0 $75.0 $75.0 $75.0 $75.0

Capex as % of Sales NA -1.0% 12.3% -2.9% 3.0% 4.0% 3.5% 3.5% 3.5%Asset Disposition NA $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0Days Payable 8 8 10 11 11 11 11 11 11Accrued Liabilities as % of COGS 6.6% 7.1% 6.3% 6.9% 8.5% 8.0% 7.5% 7.0% 7.0%Other Current Liabilities as % of COGS 2.8% 5.0% 4.9% 4.2% 2.0% 2.0% 2.0% 2.0% 2.0%Other Liabilities $96.6 $94.6 $103.9 $113.3 $100.0 $100.0 $100.0 $100.0 $100.0

Common Stock $9.4 $85.8 $92.5 $77.2 $77.2 $77.2 $77.2 $77.2 $77.2

Interest Rate AssumptionsLIBOR 4.00% 4.00% 4.00% 4.00% 4.25% 4.50% 4.75% 5.00% 5.25%Interest earned on cash 2.00% 2.00% 2.00% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25%

Revolver 2.0%+li 6.00% 6.00% 6.00% 6.00% 6.25% 6.50% 6.75% 7.00% 7.25%Term Loan 2.5%+li 6.50% 6.50% 6.50% 6.50% 6.75% 7.00% 7.25% 7.50% 7.75%Unsecured Debt 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00%

Term Loan Amortization - - - - 15.0$ 15.0$ 15.0$ 15.0$ 15.0$ Senior Bond Amortization -$ -$ -$ -$ -$ Unsecured Debt Amortization - - - - -$ -$ -$ -$ -$

Ruby Tuesday FINANCIAL MODEL

($ in millions)2009A 2010A 2011A 2012A ProForma 2013P 2014P 2015P 2016P 2017P

Income StatementRevenue $1,248.6 $1,194.8 $1,265.2 $1,325.8 $1,299.3 $1,302.6 $1,312.3 $1,328.7 $1,348.7 % Growth NA -4.3% 5.9% 4.8% -2.0% 0.2% 0.8% 1.3% 1.5%

Cost of Goods Sold (1) $1,026.4 $982.3 $1,044.5 $1,105.7 $1,046.0 $1,055.1 $1,076.1 $1,102.9 $1,119.4 COGS as % of Revenue 82.2% 82.2% 82.6% 83.4% 80.5% 81.0% 82.0% 83.0% 83.0%

Gross Profit $222.1 $212.5 $220.6 $220.1 $253.4 $247.5 $236.2 $225.9 $229.3 Gross Profit Margin % 17.8% 17.8% 17.4% 16.6% 19.5% 19.0% 18.0% 17.0% 17.0%

Depreciation $75.0 $63.8 $62.9 $65.3 $71.9 $66.0 $67.8 $69.7 $71.6Amortization $0.0 $0.0 $0.0 $0.0 $1.6 $1.6 $1.6 $1.6 $1.6

SG&A Expenses and Other $156.1 $74.6 $92.8 $150.1 $149.4 $132.9 $114.2 $106.3 $107.9 SG&A as % of Revenue 12.5% 6.2% 7.3% 11.3% 11.5% 10.2% 8.7% 8.0% 8.0%

Operating Income / EBIT ($8.9) $74.1 $65.0 $4.7 $30.5 $47.0 $52.6 $48.3 $48.2 Operating Income / EBIT Margin % -0.7% 6.2% 5.1% 0.4% 2.3% 3.6% 4.0% 3.6% 3.6%

EBITDA $66.0 $137.9 $127.9 $70.0 $103.9 $114.6 $122.0 $119.6 $121.4 EBITDA Margin % 5.3% 11.5% 10.1% 5.3% 8.0% 8.8% 9.3% 9.0% 9.0%

EBITDA Growth NA 108.8% -7.3% -45.3% 48.5% 10.3% 6.5% -2.0% 1.5%

Interest Expense $33.9 $16.4 $12.4 $19.6 $33.0 $32.6 $31.3 $29.7 $29.1Interest Income $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.6 Net Interest Expense $33.9 $16.4 $12.4 $19.6 $33.0 $32.6 $31.3 $29.7 $28.5

Other Income / (Expense) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

Pretax Income ($42.9) $57.8 $52.6 ($14.9) ($2.6) $14.5 $21.3 $18.6 $19.7

Taxes ($24.9) $12.4 $5.7 ($14.8) ($0.9) $5.1 $7.5 $6.5 $6.9 Tax Rate 58.2% 21.5% 10.9% 98.7% 35.0% 35.0% 35.0% 35.0% 35.0%

Net Income ($17.9) $45.3 $46.9 ($0.2) ($1.7) $9.4 $13.9 $12.1 $12.8 Net Margin % -1.4% 3.8% 3.7% 0.0% -0.1% 0.7% 1.1% 0.9% 1.0%

Net Income Growth NA -353.1% 3.4% -100.4% 792.1% -661.0% 47.5% -12.8% 6.0%

(1) Excludes depreciation and amortization

PROJECTED FINANCIAL STATEMENTSFiscal Year Ending December 31,

Balance SheetAssetsCash $9.8 $9.6 $9.7 $48.2 $0.0 $0.0 $0.0 $0.0 $0.0 $35.6Accounts Receivable $16.7 $9.7 $10.6 $5.5 $5.5 $9.0 $9.0 $9.1 $9.2 $9.4Inventory $21.0 $28.8 $34.5 $29.0 $29.0 $24.7 $27.8 $29.9 $30.6 $31.1Other Current Assets $45.5 $28.2 $28.6 $45.5 $45.5 $40.0 $33.0 $25.0 $20.0 $20.0 Total Current Assets $93.0 $76.3 $83.4 $128.3 $80.1 $73.7 $69.9 $64.0 $59.9 $96.1

Gross PP&E $1,453.9 $1,441.4 $1,597.4 $1,558.6 $1,558.6 $1,597.6 $1,649.7 $1,695.6 $1,742.1 $1,789.4Accumulated Depreciation $486.4 $522.7 $566.3 $592.0 $592.0 $663.9 $729.9 $797.7 $867.4 $939.0Net PP&E $967.5 $918.7 $1,031.2 $966.6 $966.6 $933.7 $919.8 $897.9 $874.7 $850.4

Other Assets $63.7 $69.0 $56.9 $70.7 $70.7 $75.0 $75.0 $75.0 $75.0 $75.0Amortizable Intangibles $0.0 $0.0 $0.0 $0.0 $8.0 $6.4 $4.8 $3.2 $1.6 $0.0Goodwill $0.0 $0.0 $15.6 $8.0 ($30.7) ($30.7) ($30.7) ($30.7) ($30.7) ($30.7)Total Assets $1,124.2 $1,064.0 $1,187.0 $1,173.5 $1,094.7 $1,058.1 $1,038.8 $1,009.4 $980.5 $990.7

LiabilitiesAccounts Payable $21.9 $23.0 $29.8 $34.9 $34.9 $32.0 $32.2 $32.9 $33.7 $34.2Accrued Liabilities $67.3 $69.5 $65.7 $76.1 $76.1 $88.9 $84.4 $80.7 $77.2 $78.4Other Current Liabilities $28.8 $49.5 $51.7 $46.3 $46.3 $20.9 $21.1 $21.5 $22.1 $22.4 Total Current Liabilities $117.9 $142.0 $147.2 $157.3 $157.3 $141.8 $137.7 $135.1 $133.0 $134.9

Existing DebtRevolving Credit Facility $319.100 $203.800 $177.000 $0.000 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0Term Loan $41.5 $37.0 $122.8 $80.3 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0Senior Bonds $132.8 $48.4 $44.4 $246.4 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

New DebtRevolving Credit Facility $102.0 $100.8 $79.9 $41.9 $4.5 $0.0Term Loan $153.0 $138.0 $123.0 $108.0 $93.0 $78.0Senior Bonds $102.0 $102.0 $102.0 $102.0 $102.0 $102.0Unsecured Debt $102.0 $112.2 $123.4 $135.8 $149.3 $164.3

Other Liabilities $96.6 $94.6 $103.9 $113.3 $113.3 $100.0 $100.0 $100.0 $100.0 $100.0 Total Liabilities $707.8 $525.9 $595.3 $597.3 $729.7 $694.8 $666.0 $622.8 $581.8 $579.2

Shareholders EquityRetained Earnings $407.0 $452.3 $499.2 $499.0 ($6.0) ($7.7) $1.7 $15.6 $27.7 $40.5Common Stock $9.4 $85.8 $92.5 $77.2 $371.0 $371.0 $371.0 $371.0 $371.0 $371.0 Total Shareholders Equity $416.4 $538.1 $591.7 $576.2 $365.0 $363.3 $372.7 $386.6 $398.7 $411.5

Total Liabilities and Equity $1,124.2 $1,064.0 $1,187.0 $1,173.5 $1,094.7 $1,058.1 $1,038.8 $1,009.4 $980.5 $990.7 Check $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

Cash FlowNet Income NA $45.3 $46.9 ($0.2) ($1.7) $9.4 $13.9 $12.1 $12.8Plus / (minus):PIK Interest $10.2 $11.2 $12.3 $13.6 $14.9 Depreciation and Amortization NA $63.8 $62.9 $65.3 $73.5 $67.6 $69.4 $71.3 $73.2 Changes in Working Capital Accounts Receivable NA $7.0 ($0.9) $5.1 ($3.5) ($0.0) ($0.1) ($0.1) ($0.1) Inventory NA ($7.8) ($5.7) $5.4 $4.3 ($3.1) ($2.0) ($0.7) ($0.5) Other Current Assets NA $17.3 ($0.4) ($17.0) $5.5 $7.0 $8.0 $5.0 $0.0 Other Assets NA ($5.3) $12.1 ($13.7) ($4.3) $0.0 $0.0 $0.0 $0.0 Accounts Payable NA $1.1 $6.9 $5.1 ($3.0) $0.3 $0.6 $0.8 $0.5 Accrued Liabilities NA $2.3 ($3.8) $10.4 $12.8 ($4.5) ($3.7) ($3.5) $1.2 Other Current Liabilities NA $20.8 $2.1 ($5.3) ($25.4) $0.2 $0.4 $0.5 $0.3 Change in Other Liabilities NA ($1.9) $9.2 $9.4 ($13) $0 $0 $0 $0Cash Flows from Operations NA $142.5 $129.3 $64.5 $55.2 $88.0 $98.9 $98.9 $102.3

Cash Flows from InvestingCapital Expenditures NA $12.5 ($156.0) $38.8 ($39.0) ($52.1) ($45.9) ($46.5) ($47.2)Asset Dispositions NA $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0Cash Flows from Investing NA $12.5 ($156.0) $38.8 ($39.0) ($52.1) ($45.9) ($46.5) ($47.2)

Cash Flows from FinancingIssue (Purchase) of Equity NA $76.4 $6.7 ($15.3)Change in Revolver NA ($115.3) ($26.8) ($177.0) ($1.2) ($20.9) ($38.0) ($37.4) ($4.5)Change in Term Loan NA ($4.5) $85.8 ($42.5) ($15.0) ($15.0) ($15.0) ($15.0) ($15.0)Change in Senior Bonds $0.0 $0.0 $0.0 $0.0 $0.0Change in Unsecured Debt NA ($84.4) ($4.0) $201.9 $0.0 $0.0 $0.0 $0.0 $0.0 Total Cash Flows from Financing NA ($127.8) $61.7 ($32.9) ($16.2) ($35.9) ($53.0) ($52.4) ($19.5)

Total Cash Flow NA $27.3 $35.0 $70.5 $0.0 $0.0 $0.0 $0.0 $35.6

Beginning Cash Position NA $9.8 $9.6 $9.7 $0.0 $0.0 $0.0 $0.0 $0.0Change in Cash Position NA $27.3 $35.0 $70.5 $0.0 $0.0 $0.0 $0.0 $35.6Ending Cash Position NA $9.6 $9.7 $48.2 $0.0 $0.0 $0.0 $0.0 $35.6

Cash Flow Before Revolver $75.9 $64.7 $272.5 $1.2 $20.9 $38.0 $37.4 $40.1Debt and Interest ScheduleRevolver Beginning Revolver Balance $319.1 $203.8 $177.0 $102.0 $100.8 $79.9 $41.9 $4.5(Paydown) / Drawdown ($115.3) ($26.8) ($177.0) ($1.2) ($20.9) ($38.0) ($37.4) ($4.5)Ending Revolver Balance $203.8 $177.0 $0.0 $100.8 $79.9 $41.9 $4.5 $0.0Interest Rate NA NA NA 5.00% 5.00% 5.00% 5.00% 5.00%Interest Expense NA NA NA $5.1 $4.5 $3.0 $1.2 $0.1

Term LoanTerm Loan Beginning Balance $41.5 $37.0 $122.8 $153.0 $138.0 $123.0 $108.0 $93.0(Paydown) / Drawdown ($4.5) $85.8 ($42.5) ($15.0) ($15.0) ($15.0) ($15.0) ($15.0)Term Loan Ending Balance $37.0 $122.8 $80.3 $138.0 $123.0 $108.0 $93.0 $78.0Interest Rate NA NA NA 6.25% 6.25% 6.25% 6.25% 6.25%Interest Expense NA NA NA $9.1 $8.2 $7.2 $6.3 $5.3

Senior BondsSenior Bonds Beginning Balance $132.8 $48.4 $44.4 $102.0 $102.0 $102.0 $102.0 $102.0(Paydown) / Drawdown ($84.4) ($4.0) $201.9 $0.0 $0.0 $0.0 $0.0 $0.0Senior Bonds Ending Balance $48.4 $44.4 $246.4 $102.0 $102.0 $102.0 $102.0 $102.0Interest Rate NA NA NA 8.50% 8.50% 8.50% 8.50% 8.50%Interest Expense NA NA NA $8.7 $8.7 $8.7 $8.7 $8.7

Unsecured DebtUnsecured Debt Beginning Balance $0.0 $0.0 $0.0 $102.0 $112.2 $123.4 $135.8 $149.3(Paydown) / Drawdown $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0Unsecured Debt Ending Balance $0.0 $0.0 $0.0 $112.2 $123.4 $135.8 $149.3 $164.3Cash Interest Rate 12% 12% 12% 0.00% 0.00% 0.00% 0.00% 0.00%Cash Interest Expense $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0PIK Interest Rate 10.0% 10.0% 10.0% 10.0% 10.0%PIK Interest Expense $10.2 $11.2 $12.3 $13.6 $14.9

Total Interest Expense $16.4 $12.4 $19.6 $33.0 $32.6 $31.3 $29.7 $29.1

Interest Earned on Cash $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.6

DCF Base

Key Assumptions Sales Growth – Closure of Marlin and RT stores

will decrease sales growth for the next year as they go through restructuring period.

COGS – Simplified menu will decrease COGS. SG&A will increase temporarily because of

change in management, restructuring, and increased marketing expenses.

Increase in Depreciation is expected because of asset retirement, which will accelerate depreciation and amortization.

Inventory days will be lowered due to simpler menu

BEAR BASE BULL200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1000.0

405.7

486.2

582.2565.5

654.3

764.6

Implied MVE

BEAR BASE BULL500.0

600.0

700.0

800.0

900.0

1000.0

1100.0

684.2

764.7

860.7844.0

932.8

1043.1

Implied TEV

Ruby Tuesday

FOR THE FISCAL YEAR 2009A 2010A 2011A 2012A 2013E 2014E 2015E 2016E 2017E

INCOME STATEMENT

Net Sales or Revenues $1,248.6 $1,194.8 $1,265.2 $1,325.8 $1,299.3 $1,302.6 $1,312.3 $1,328.7 $1,348.7

Sales Growth % 31.0% -4.3% 5.9% 4.8% -2.0% 0.2% 0.8% 1.3% 1.5%

Cost of Goods Sold $1,026.4 $982.3 $1,044.5 $1,105.7 $1,046.0 $1,055.1 $1,076.1 $1,102.9 $1,119.4

Gross Profit $222.1 $212.5 $220.6 $220.1 $253.4 $247.5 $236.2 $225.9 $229.3

Gross Profit Margin % 17.8% 17.8% 17.4% 16.6% 19.5% 19.0% 18.0% 17.0% 17.0%

Selling, General & Admin Expenses $82.2 $70.5 $86.0 $114.5 $129.9 $117.2 $105.0 $93.0 $94.4

Depreciation & Amortization $75.0 $63.8 $62.9 $65.3 $71.9 $66.0 $67.8 $69.7 $71.6

Other Operating Expenses $73.9 $4.1 $6.8 $35.6 $20.0 $15.0 $14.0 $13.0 $13.0

Operating Income EBIT ($8.9) $74.1 $65.0 $4.7 $31.5 $49.3 $49.4 $50.2 $50.3

EBIT Margin % -0.7% 6.2% 5.1% 0.4% 2.4% 3.8% 3.8% 3.8% 3.7%

Interest Income $0.0 $0.0 $0.0 $0.0 $1.0 $1.0 $1.0 $1.0 $1.0

Interest Expense $33.9 $16.4 $12.4 $19.6 $21.6 $19.3 $16.6 $13.8 $10.9

Net Interest Expense $33.9 $16.4 $12.4 $19.6 $20.6 $18.3 $15.6 $12.9 $9.9

Pretax Income ($42.9) $57.8 $52.6 ($14.9) $10.9 $31.0 $33.8 $37.3 $40.4

Income Taxes ($24.9) $12.4 $5.7 ($14.8) $3.83 $10.8 $11.8 $13.1 $14.1

Net Income to Common Shareholders ($17.9) $45.3 $46.9 ($0.2) $7.1 $20.1 $21.9 $24.3 $26.2

Net Income Margin % -1.4% 3.8% 3.7% 0.0% 0.5% 1.5% 1.7% 1.8% 1.9%

Net Income Growth % NA -353.1% 3.4% -100.4% -3883.8% 183.0% 9.0% 10.5% 8.2%

EBITDA $66.0 $137.9 $127.9 $70.0 $103.4 $115.3 $117.2 $119.9 $121.9

EBITDA Growth % NA 108.8% -7.3% -45.3% 47.8% 11.4% 1.7% 2.3% 1.7%

EBITDA Margin % 5.3% 11.5% 10.1% 5.3% 8.0% 8.8% 8.9% 9.0% 9.0%

BASIC ENDING Shares Outstanding 65.0 64.8 65.1 64.3 64.3 64.3 64.3 64.3 64.3

Weighted Avg. Shares Outstanding 51.4 61.5 64.0 62.9 64.3 64.3 64.3 64.3 64.3

Basic Share Growth % NA 19.7% 4.1% -1.7% 0.0% 0.0% 0.0% 0.0% 0.0%

Weighted Avg. Share Growth % 2.3% 0.0% 0.0% 0.0% 0.0%

Earnings Per WA Share (not in $ millions) ($0.35) $0.74 $0.73 ($0.00) $0.11 $0.31 $0.34 $0.38 $0.41

EPS Growth % NA -311.4% -0.6% -100.4% -3799.7% 183.0% 9.0% 10.5% 8.2%

PROJECTED RESULTSACTUAL HISTORICAL RESULTS

FOR THE FISCAL YEAR 2009A 2010A 2011A 2012A

BALANCE SHEET

Assets

Cash & ST Investments $9.8 $9.6 $9.7 $48.2 $48.2 $48.2 $48.2 $48.2 $48.2

Receivables (Net) $16.7 $9.7 $10.6 $5.5 $8.9 $8.9 $9.0 $9.1 $9.2

Inventories - Total $21.0 $28.8 $34.5 $29.0 $24.4 $27.5 $29.5 $30.2 $30.7

Prepaid Expenses $13.4 $11.2 $12.8 $13.7 $15.0 $15.0 $14.0 $13.0 $13.0

Other Current Assets $32.0 $17.0 $15.8 $31.8 $40.0 $33.0 $25.0 $20.0 $20.0

Current Assets - Total $93.0 $76.3 $83.4 $128.3 $136.4 $132.6 $125.7 $120.5 $121.1

Property Plant & Equipment - Net $967.5 $918.7 $1,031.2 $966.6 $933.7 $919.8 $897.9 $874.7 $850.4

Property Plant & Equipment - Gross $1,453.9 $1,441.4 $1,597.4 $1,558.6 $1,597.6 $1,649.7 $1,695.6 $1,742.1 $1,789.4

(Less) Accumulated Depreciation $486.4 $522.7 $566.3 $592.0 $663.9 $729.9 $797.7 $867.4 $939.0

Other Assets $63.7 $69.0 $72.5 $78.7 $75.0 $75.0 $75.0 $75.0 $75.0

Total Assets $1,124.2 $1,064.0 $1,187.0 $1,173.5 $1,145.1 $1,127.4 $1,098.6 $1,070.2 $1,046.5

Liabilities

Accounts Payable $21.9 $23.0 $29.8 $34.9 $31.5 $31.8 $32.4 $33.2 $33.7

STD - Revolving Line of Credit $319.1 $203.8 $177.0 $0.0 $23.3 $27.2 $24.8 $20.1 $10.5

Deferred Income $8.0 $9.5 $8.7 $8.8 $9.1 $10.4 $11.8 $10.6 $10.8

Accrued Expenses $67.3 $69.5 $65.7 $76.1 $88.9 $84.4 $80.7 $77.2 $78.4

Income Taxes Payable $20.7 $40.0 $42.9 $37.6 $32.3 $38.5 $33.2 $27.7 $21.8

Other Current Liabilities $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

Current Liabilities - Total $437.0 $345.8 $324.2 $157.3 $185.2 $192.4 $182.9 $168.8 $155.1

Term Loan $41.5 $37.0 $122.8 $80.3 $60.2 $45.2 $33.9 $25.4 $19.1

Senior Bonds $132.8 $48.4 $44.4 $246.4 $216.4 $186.4 $156.4 $126.4 $96.4

Total Long Term Debt $174.3 $85.5 $167.3 $326.7 $276.6 $231.5 $190.2 $151.8 $115.4

Other Liabilities $96.6 $94.6 $103.9 $113.3 $100.0 $100.0 $100.0 $100.0 $100.0

Total Liabilities $707.8 $525.9 $595.3 $597.3 $561.8 $523.9 $473.2 $420.6 $370.5

Shareholders' Equity

Common Stock $9.4 $85.8 $92.5 $77.2 $77.2 $77.2 $77.2 $77.2 $77.2

Retained Earnings $407.0 $452.3 $499.2 $499.0 $506.1 $526.2 $548.2 $572.4 $598.7

Total Shareholder Equity $416.4 $538.1 $591.7 $576.2 $583.3 $603.5 $625.4 $649.7 $675.9

CHECK (L+SE-A) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


CASH FLOW STATEMENT

Cash Flow Provided By Operating Activity

Net Income(Loss) NA $45.3 $46.9 ($0.2) $7.1 $20.1 $21.9 $24.3 $26.2

Depreciation+Amortization NA $63.8 $62.9 $65.3 $71.9 $66.0 $67.8 $69.7 $71.6

Decrease/(Increase) in Accounts Recievable NA $7.0 ($0.9) $5.1 ($3.4) ($0.0) ($0.1) ($0.1) ($0.1)

Decrease/(Increase) in Inventory NA ($7.8) ($5.7) $5.4 $4.7 ($3.1) ($2.0) ($0.7) ($0.5)

Decrease/(Increase) in Prepaid Expenses NA $2.3 ($1.6) ($0.9) ($1.3) $0.0 $1.0 $1.0 $0.0

Decrease/(Increase) in Other Current Assets NA $15.0 $1.3 ($16.1) ($8.2) $7.0 $8.0 $5.0 $0.0

Decrease/(Increase) in Other Assets NA ($5.3) ($3.5) ($6.2) $3.7 $0.0 $0.0 $0.0 $0.0

(Increase)/Decrease in Accounts Payable NA $1.1 $6.9 $5.1 ($3.4) $0.3 $0.6 $0.8 $0.5

(Increase)/Decrease in Deferred Income NA $1.5 ($0.8) $0.0 $0.3 $1.3 $1.4 ($1.2) $0.2

(Increase)/Decrease in Accrued Expense NA $2.3 ($3.8) $10.4 $12.8 ($4.5) ($3.7) ($3.5) $1.2

(Increase)/Decrease in Taxes Payable NA $19.3 $2.9 ($5.4) ($5.2) $6.2 ($5.3) ($5.6) ($5.9)

(Increase)/Decrease in Other Current Liabilities NA $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

(Increase)/Decrease in Other Liabilities NA ($1.9) $9.2 $9.4 ($13.3) $0.0 $0.0 $0.0 $0.0

Net Change in Working Capital NA $33.4 $4.0 $7.0 ($13.3) $7.2 ($0.1) ($4.3) ($4.7)

Cash Flow Provided By Operating Activity NA $142.5 $113.8 $72.1 $65.7 $93.3 $89.7 $89.7 $93.2

Cash Flow Provided By Investing Activity

(Capital Expenditures) NA $12.5 ($156.0) $38.8 ($39.0) ($52.1) ($45.9) ($46.5) ($47.2)

(Acq.) Disp. of Assets NA $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

Net Cash Provision (Used By Investing NA $12.5 ($156.0) $38.8 ($39.0) ($52.1) ($45.9) ($46.5) ($47.2)

Cash Flow Provide By Financing Activity

Issue (Purchase) Of Equity NA $76.4 $6.7 ($15.3) $0.0 $0.0 $0.0 $0.0 $0.0

Change in Revolving Credit NA ($115.3) ($26.8) ($177.0) $23.3 $3.9 -$2.5 -$4.7 -$9.6

Change in Long Term Debt NA ($88.8) $81.8 $159.4 ($50.1) ($45.1) ($41.3) ($38.5) ($36.4)

Net Cash Provided by Financing Activity NA ($127.8) $61.7 ($32.9) ($26.7) ($41.2) ($43.8) ($43.2) ($46.0)

Net Change in Cash NA $27.3 $19.5 $78.0 $0.0 $0.0 $0.0 $0.0 $0.0

Beginning Cash NA $9.8 $9.6 $9.7 $48.2 $48.2 $48.2 $48.2 $48.2

End Cash NA $9.6 $9.7 $48.2 $48.2 $48.2 $48.2 $48.2 $48.2

ASSUMPTIONS 2009A 2010A 2011A 2012A 2013E 2014E 2015E 2016E 2017E

INCOME STATEMENT ASSUMPTIONS:

Sales Growth % NA -4.3% 5.9% 4.8% -2.0% 0.3% 0.8% 1.3% 1.5%

Cost of Goods Sold % of Sales 82.2% 82.2% 82.6% 83.4% 80.5% 81.0% 82.0% 83.0% 83.0%

Selling, General & Admin Expenses % of Sales 6.6% 5.9% 6.8% 8.6% 10.0% 9.0% 8.0% 7.0% 7.0%

Depreciation & Amortization as a % of Gross PP&E 5.2% 4.4% 3.9% 4.2% 4.5% 4.0% 4.0% 4.0% 4.0%


Effective Tax Rate 58.2% 21.5% 10.9% 98.7% 35.0% 35.0% 35.0% 35.0% 35.0%

BALANCE SHEET ASSUMPTIONS:

Receivables Days 4.9 3.0 3.1 1.5 2.5 2.5 2.5 2.5 2.5

Inventory Days 7.5 10.7 12.0 9.6 8.5 9.5 10 10 10



Other Assets $63.7 $69.0 $72.5 $78.7 $75.0 $75.0 $75.0 $75.0 $75.0

CAPEX as a % of Sales NA -1.0% 12.3% -2.9% 3.0% 4.0% 3.5% 3.5% 3.5%

Accounts Payable Days 7.7 8.4 10.3 11.4 11 11 11 11 11

Deferred Income % of Sales 0.6% 0.8% 0.7% 0.7% 0.7% 0.8% 0.9% 0.8% 0.8%

Accrued Expenses % of COGS 6.6% 7.1% 6.3% 6.9% 8.5% 8.0% 7.5% 7.0% 7.0%

Income Taxes Payable % of Tax Expense -83.0% 322.3% 747.3% -254.7% 150.0% 200.0% 200.0% 200.0% 200.0%

Other Current Liabilities % of COGS 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%


Asset Dispositions

FINANCE ASSUMPTIONS:

1 Year LIBOR (increase/(decrease) per year 0.50% 4.9% 5.4% 4.2% 2.0% 2.50% 3.00% 3.50% 4.00% 4.50%

Revolver Rate 1.00% +Li NM NM NM NM 3.50% 4.00% 4.50% 5.00% 5.50%

Term Loan Rate 2.50% +Li NM NM NM NM 5.00% 5.50% 6.00% 6.50% 7.00%

Senior Bonds 7.63% NM NM NM NM 7.6% 7.6% 7.6% 7.6% 7.6%

Term Loan Amortization % of O/S Balance 25.00% NM NM NM NM 25.0% 25.0% 25.0% 25.0% 25.0%

Senior Bonds Amortization $/Year $30.0 NM NM NM NM $30.0 $30.0 $30.0 $30.0 $30.0

Common Shares Issued (millions) NM NM NM NM -

Share Price at Issue (in $) NM NM NM NM $20.0

Date Issued (d/m/year) NM NM NM NM 9/30/2011

Year Beginning (1/1/xxxx) 1/1/2011

New Equity Capital (in $ millions) $0.0

New Weighted Avg. Shares 0.00

Interest Rate Earned on Cash 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Financial ProjectionsFiscal Year Ending ($MMs) 06/05/13 06/05/14 06/05/15 06/04/16 06/04/17

Revenue $1,299.3 $1,302.6 $1,312.3 $1,328.7 $1,348.7EBIT 31.5 49.3 49.4 50.2 50.3

Depreciation and Amortization 71.9 66.0 67.8 69.7 71.6EBITDA $103.4 $115.3 $117.2 $119.9 $121.9Capital Expenditures (39.0) (52.1) (45.9) (46.5) (47.2)Working Capital Requirements (3.6) 7.2 (0.1) (4.3) (4.7)

Discounted Cash Flow (DCF) Analysis Fiscal Year Ending ($MMs) 06/05/13 06/05/14 06/05/15 06/04/16 06/04/17

Revenue $245.62 $1,302.6 $1,312.3 $1,328.7 $1,348.7

EBIT $6.0 $49.3 $49.4 $50.2 $50.3Less: Taxes (2.1) (17.2) (17.3) (17.6) (17.6)

Debt-Free Earnings $3.9 $32.0 $32.1 $32.6 $32.7Less: Capital Expenditures (7.4) (52.1) (45.9) (46.5) (47.2)Less: Working Capital Requirements (0.7) 7.2 (0.1) (4.3) (4.7)Add: Depreciation and Amortization 13.6 66.0 67.8 69.7 71.6

Total Net Investment $5.5 $21.0 $21.8 $18.9 $19.7

Net Debt-Free Cash Flows: $9.4 $53.1 $53.9 $51.5 $52.4Discount Period (end convention) 0.19 1.19 2.19 3.19 4.19Discount Period (mid year convention) 0.09 0.69 1.69 2.69 3.69Discount Factor @ 9.3% 0.98 0.90 0.82 0.75 0.69

PV of Net Debt-Free Cash Flows: $9.3 $47.8 $44.4 $38.8 $36.1

Discount Rate and Tax Rate Assumptions

Discount Rate 9.3%Tax Rate 35.0%

Terminal Value AnalysisTerminal Year EBITDA $121.9Terminal Multiple 8.0x

Terminal Value $974.94Discount Period 4.19Discount Factor @ 9.3% 0.69

PV of Terminal Value $672.4

Projection Period Value Analysis

PV of Proj. Period FCFs $176.4

Distribution of Value

Period Cash Flow 20.8%Terminal Cash Flow 79.2%Total 100.0%

Implied TEV & Equity ValueImplied TEV $848.8Less: Debt ($326.7)Less: Pref. $0.0Less: Min. Int. $0.0Plus: Cash $48.2

Implied Equity Value $570.2

Key Assumptions

18.9% Stub Period6/5/13 Current Fiscal Year Ending

03/28/13 Transaction/Valuation Date$1,325.8 Revenue Last Fiscal Year

35.0% Tax Rate

8.0x Terminal Multiple (EBITDA)9.3% Discount Rate

NO Mid Year Convention (YES or NO)

1.0x Terminal Multiple Increment1.0% Discount Rate Increment

61.14 Basic Shares61.50 FD Shares

$9.27 Implied Share Price

TEV - Sensitivity Analysis####### 6.0x 7.0x 8.0x 9.0x 10.0x11.3% 636.2 714.1 792.0 869.9 947.810.3% 657.9 738.8 819.7 900.6 981.59.3% 680.7 764.7 848.8 932.8 1,016.9

8.3% 704.5 791.8 879.2 966.5 1,053.97.3% 729.4 820.2 911.0 1,001.9 1,092.7

Terminal Multiple

Dis

cou

nt

Rat

e

Equity Value - Sensitivity####### 6.0x 7.0x 8.0x 9.0x 10.0x11.3% 357.7 435.6 513.5 591.3 669.210.3% 379.4 460.3 541.2 622.1 703.09.3% 402.2 486.2 570.2 654.3 738.3

8.3% 426.0 513.3 600.7 688.0 775.47.3% 450.9 541.7 632.5 723.3 814.1

Terminal Multiple

Dis

cou

nt

Rat

e

Share Price- Sensitivity $9.27 6.0x 7.0x 8.0x 9.0x 10.0x

11.3% $5.8 $7.1 $8.4 $9.6 $10.810.3% $6.2 $7.5 $8.8 $10.1 $11.49.3% $6.6 $8.0 $9.3 $10.6 $11.9

8.3% $7.0 $8.4 $9.7 $11.1 $12.57.3% $7.4 $8.8 $10.2 $11.7 $13.1

Terminal Multiple

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Current Year TEV/REV - Sensitivity$0.65 6.0x 7.0x 8.0x 9.0x 10.0x

11.3% 0.5x 0.5x 0.6x 0.7x 0.7x 10.3% 0.5x 0.6x 0.6x 0.7x 0.8x 9.3% 0.5x 0.6x 0.7x 0.7x 0.8x

8.3% 0.5x 0.6x 0.7x 0.7x 0.8x 7.3% 0.6x 0.6x 0.7x 0.8x 0.8x

Terminal Multiple

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Current Year TEV/EBITDA - Sensitivity$8.21 6.0x 7.0x 8.0x 9.0x 10.0x


7.3% 7.1x 7.9x 8.8x 9.7x 10.6x 0.0% 9.2x 10.4x 11.6x 12.7x 13.9x

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Dilutive Shares

Dilutive

Options Class #Options WA Price SharesA 2.732 $8.05 0.36B 0.00C 0.00D 0.00E 0.00F 0.00Total 2.732 0.36

DilutiveConvert. Class Face Amount Conversion Price Shares

A - B - C - D - E - F -

Total $0.0 -

Tax Rate 35%Beta 1.51Risk Free Rate 1.70%Market Premium 7.00%

Capital:Total Debt $305.8 305.83Total Equity $441 440.68Total Preferred $0.00

Total Capital $746.5

Capital Ratios:Debt to Total Capital 41.0%Equity to Total Capital 59.0%Preferred to Total Capital 0.0%

Cost of Capital:Cost of Debt 7.63%Cost of Equity 12.27%

WACC 9.28%

Cost of DebtDescription Amount % of Total Interest Rate Weighted Rate

US 2012 Notes $250.0 100.0% 7.63% 7.63%0.0% 0.00%0.0% 0.00%0.0% 0.00%0.0% 0.00%0.0% 0.00%0.0% 0.00%

Total $250.0 100% 7.63%

Cost of Capital Worksheet

DCF Bear

Ruby Tuesday


INCOME STATEMENT


Sales Growth % 31.0% -4.3% 5.9% 4.8% -3.5% -1.0% 0.2% 0.5% 1.0%


Gross Profit $222.1 $212.5 $220.6 $220.1 $243.1 $240.7 $228.6 $216.9 $219.1





Operating Income EBIT ($8.9) $74.1 $65.0 $4.7 ($2.9) $32.1 $43.8 $43.1 $42.1

EBIT Margin % -0.7% 6.2% 5.1% 0.4% -0.2% 2.5% 3.4% 3.4% 3.3%

Interest Income $0.0 $0.0 $0.0 $0.0 $1.0 $1.0 $1.0 $1.0 $1.0



Pretax Income ($42.9) $57.8 $52.6 ($14.9) ($24.1) $12.0 $25.3 $26.4 $27.1

Income Taxes ($24.9) $12.4 $5.7 ($14.8) ($8.43) $4.2 $8.9 $9.2 $9.5

Net Income to Common Shareholders ($17.9) $45.3 $46.9 ($0.2) ($15.7) $7.8 $16.4 $17.2 $17.6

Net Income Margin % -1.4% 3.8% 3.7% 0.0% -1.2% 0.6% 1.3% 1.3% 1.4%

Net Income Growth % NA -353.1% 3.4% -100.4% 8226.2% -149.7% 111.5% 4.3% 2.6%

EBITDA $66.0 $137.9 $127.9 $70.0 $69.6 $99.0 $113.0 $114.6 $115.9

EBITDA Growth % NA 108.8% -7.3% -45.3% -0.6% 42.3% 14.1% 1.4% 1.1%

EBITDA Margin % 5.3% 11.5% 10.1% 5.3% 5.4% 7.8% 8.9% 9.0% 9.0%





Earnings Per WA Share (not in $ millions) ($0.35) $0.74 $0.73 ($0.00) ($0.24) $0.12 $0.26 $0.27 $0.27

EPS Growth % NA -311.4% -0.6% -100.4% 8041.2% -149.7% 111.5% 4.3% 2.6%



BALANCE SHEET

Assets


Receivables (Net) $16.7 $9.7 $10.6 $5.5 $8.8 $8.7 $8.7 $8.7 $8.8








Other Assets $63.7 $69.0 $72.5 $78.7 $75.0 $75.0 $75.0 $75.0 $75.0

Total Assets $1,124.2 $1,064.0 $1,187.0 $1,173.5 $1,156.4 $1,148.3 $1,129.1 $1,109.5 $1,094.1

Liabilities



Deferred Income $8.0 $9.5 $8.7 $8.8 $9.0 $10.1 $11.4 $10.2 $10.3





Term Loan $41.5 $37.0 $122.8 $80.3 $60.2 $45.2 $33.9 $25.4 $19.1

Senior Bonds $132.8 $48.4 $44.4 $246.4 $216.4 $186.4 $156.4 $126.4 $96.4




Shareholders' EquityCommon Stock $9.4 $85.8 $92.5 $77.2 $77.2 $77.2 $77.2 $77.2 $77.2



CHECK (L+SE-A) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


CASH FLOW STATEMENT


Net Income(Loss) NA $45.3 $46.9 ($0.2) ($15.7) $7.8 $16.4 $17.2 $17.6


Decrease/(Increase) in Accounts Recievable NA $7.0 ($0.9) $5.1 ($3.2) $0.1 ($0.0) ($0.0) ($0.1)





(Increase)/Decrease in Accounts Payable NA $1.1 $6.9 $5.1 ($3.7) ($0.3) $0.5 $0.5 $0.3






Net Change in Working Capital NA $33.4 $4.0 $7.0 ($13.3) $8.3 $1.6 ($2.7) ($2.7)








Change in Revolving Credit NA ($115.3) ($26.8) ($177.0) $57.7 $25.4 $11.1 $9.9 $5.6


Net Cash Provided by Financing Activity NA ($127.8) $61.7 ($32.9) $7.7 ($19.6) ($30.2) ($28.6) ($30.8)



End Cash NA $9.6 $9.7 $48.2 $48.2 $48.2 $48.2 $48.2 $48.2

DEBT TABLE:

Change in Cash Before RCF NA $142.6 $46.3 $255.0 ($57.7) ($25.4) ($11.1) ($9.9) ($5.6)

RCF Beginning Balance $319.1 $319.1 $203.8 $177.0 $0.0 $57.7 $83.2 $94.3 $104.2

RCF (Paydown)/Additional Borrowing $0.0 ($115.3) ($26.8) ($177.0) $57.7 $25.4 $11.1 $9.9 $5.6

RCF Ending Balance $319.1 $203.8 $177.0 $0.0 $57.7 $83.2 $94.3 $104.2 $109.8

RCF Interest Rate NA NA NA NA 3.50% 4.00% 4.50% 5.00% 5.50%

RCF Interest Expense NA NA NA NA $1.0 $2.8 $4.0 $5.0 $5.9

Term Loan Beginning Balance NA $41.5 $37.0 $122.8 $80.3 $60.2 $45.2 $33.9 $25.4

Term Loan (Paydown)/Additional Borrowing NA ($4.5) $85.8 ($42.5) ($20.1) ($15.1) ($11.3) ($8.5) ($6.4)

Term Loan Ending Balance NA $37.0 $122.8 $80.3 $60.2 $45.2 $33.9 $25.4 $19.1

Term Loan Interest Rate NA NA NA NA 5.00% 5.50% 6.00% 6.50% 7.00%

Term Loan Interest Expense NA NA NA NA $3.5 $2.9 $2.4 $1.9 $1.6

Senior Bonds Beginning Balance NA $132.8 $48.4 $44.4 $246.4 $216.4 $186.4 $156.4 $126.4

Senior Bonds (Paydown)/Additional Borrowing NA ($84.4) ($4.0) $201.9 ($30.0) ($30.0) ($30.0) ($30.0) ($30.0)

Senior Bonds Ending Balance NA $48.4 $44.4 $246.4 $216.4 $186.4 $156.4 $126.4 $96.4

Senior Bonds Interest Rate NA NA NA NA 7.6% 7.6% 7.6% 7.6% 7.6%

Senior Bonds Interest Expense NA NA NA NA $17.6 $15.4 $13.1 $10.8 $8.5

Total Ending Debt $493.4 $289.3 $344.3 $326.7 $334.3 $314.7 $284.5 $256.0 $225.2

Total Interest Expense $33.9 $16.4 $12.4 $19.6 $22.2 $21.1 $19.4 $17.7 $15.9

Interest Earned on Cash $0.0 $0.0 $0.0 $0.0 $0.96 $1.0 $1.0 $1.0 $1.0



Sales Growth % NA -4.3% 5.9% 4.8% -3.5% -1.0% 0.3% 0.5% 1.0%








Inventory Days 7.5 10.7 12.0 9.6 8.5 9.5 10 10 10



Other Assets $63.7 $69.0 $72.5 $78.7 $75.0 $75.0 $75.0 $75.0 $75.0








Asset Dispositions
















Revenue $1,279.4 $1,266.6 $1,269.8 $1,276.2 $1,288.9EBIT (2.9) 32.1 43.8 43.1 42.1

Depreciation and Amortization 72.4 66.9 69.2 71.5 73.8EBITDA $69.6 $99.0 $113.0 $114.6 $115.9Capital Expenditures (51.2) (63.3) (57.1) (57.4) (58.0)Working Capital Requirements (3.6) 8.3 1.6 (2.7) (2.7)


Revenue $241.87 $1,266.6 $1,269.8 $1,276.2 $1,288.9

EBIT ($0.5) $32.1 $43.8 $43.1 $42.1Less: Taxes 0.2 (11.2) (15.3) (15.1) (14.7)

Debt-Free Earnings ($0.4) $20.8 $28.5 $28.0 $27.3Less: Capital Expenditures (9.7) (63.3) (57.1) (57.4) (58.0)Less: Working Capital Requirements (0.7) 8.3 1.6 (2.7) (2.7)Add: Depreciation and Amortization 13.7 66.9 69.2 71.5 73.8




TEV - Sensitivity Analysis####### 6.0x 7.0x 8.0x 9.0x 10.0x11.3% 563.5 637.6 711.6 785.7 859.810.3% 583.4 660.3 737.3 814.2 891.19.3% 604.3 684.2 764.1 844.0 924.0

8.3% 626.1 709.2 792.2 875.3 958.47.3% 649.0 735.3 821.7 908.1 994.4


8.3% 347.6 430.7 513.7 596.8 679.87.3% 370.5 456.8 543.2 629.5 715.9

Share Price- Sensitivity $7.97 6.0x 7.0x 8.0x 9.0x 10.0x

11.3% $4.7 $5.9 $7.1 $8.3 $9.510.3% $5.0 $6.3 $7.5 $8.8 $10.09.3% $5.3 $6.7 $8.0 $9.2 $10.5

8.3% $5.7 $7.1 $8.4 $9.7 $11.07.3% $6.1 $7.5 $8.9 $10.2 $11.6



8.3% 0.5x 0.6x 0.6x 0.7x 0.7x 7.3% 0.5x 0.6x 0.6x 0.7x 0.8x

Current Year TEV/EBITDA - Sensitivity$10.98 6.0x 7.0x 8.0x 9.0x 10.0x11.3% 8.1x 9.2x 10.2x 11.3x 12.4x 10.3% 8.4x 9.5x 10.6x 11.7x 12.8x 9.3% 8.7x 9.8x 11.0x 12.1x 13.3x

7.3% 9.3x 10.6x 11.8x 13.1x 14.3x 0.0% 12.3x 13.9x 15.6x 17.3x 18.9x

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Terminal Value $927.13Discount Period 4.19Discount Factor @ 9.3% 0.69








Key Assumptions


03/28/13 Transaction/Valuation Date$1,325.8 Revenue Last Fiscal Year 6/5/12

35.0% Tax Rate

13.0% WC Requirement as a % if Incrimental Revenue





$7.97 Implied Share Price8.01

Dilutive Shares

Dilutive

Options Class #Options WA Price SharesA 2.732 $8.05 0.00B 0.00C 0.00D 0.00E 0.00F 0.00Total 2.732 -






WACC 9.28%


US 2012 Notes $250.0 100.0% 7.63% 7.63%0.0% 0.00%0.0% 0.00%0.0% 0.00%0.0% 0.00%0.0% 0.00%0.0% 0.00%

Total $250.0 100% 7.63%


DCF Bull

Ruby Tuesday


INCOME STATEMENT


Sales Growth % 31.0% -4.3% 5.9% 4.8% -1.0% 0.8% 1.3% 1.5% 1.8%


Gross Profit $222.1 $212.5 $220.6 $220.1 $262.5 $257.9 $254.4 $244.6 $248.9





Operating Income EBIT ($8.9) $74.1 $65.0 $4.7 $63.5 $71.3 $72.5 $60.4 $61.1

EBIT Margin % -0.7% 6.2% 5.1% 0.4% 4.8% 5.4% 5.4% 4.4% 4.4%

Interest Income $0.0 $0.0 $0.0 $0.0 $1.0 $1.0 $1.3 $1.6 $2.0



Pretax Income ($42.9) $57.8 $52.6 ($14.9) $43.1 $53.9 $58.3 $49.3 $53.0

Income Taxes ($24.9) $12.4 $5.7 ($14.8) $15.08 $18.8 $20.4 $17.3 $18.6

Net Income to Common Shareholders ($17.9) $45.3 $46.9 ($0.2) $28.0 $35.0 $37.9 $32.1 $34.5

Net Income Margin % -1.4% 3.8% 3.7% 0.0% 2.1% 2.6% 2.8% 2.4% 2.5%

Net Income Growth % NA -353.1% 3.4% -100.4% ######## 25.0% 8.2% -15.4% 7.5%

EBITDA $66.0 $137.9 $127.9 $70.0 $127.4 $137.1 $140.0 $129.7 $132.2

EBITDA Growth % NA 108.8% -7.3% -45.3% 82.0% 7.6% 2.1% -7.3% 1.9%

EBITDA Margin % 5.3% 11.5% 10.1% 5.3% 9.7% 10.4% 10.5% 9.5% 9.6%





Earnings Per WA Share (not in $ millions) ($0.35) $0.74 $0.73 ($0.00) $0.44 $0.54 $0.59 $0.50 $0.54

EPS Growth % NA -311.4% -0.6% -100.4% -14665.2% 25.0% 8.2% -15.4% 7.5%



BALANCE SHEET

Assets


Receivables (Net) $16.7 $9.7 $10.6 $5.5 $8.8 $8.7 $8.7 $8.7 $8.8








Other Assets $63.7 $69.0 $72.5 $78.7 $75.0 $75.0 $75.0 $75.0 $75.0

Total Assets $1,124.2 $1,064.0 $1,187.0 $1,173.5 $1,156.4 $1,148.3 $1,129.1 $1,109.5 $1,094.1

Liabilities



Deferred Income $8.0 $9.5 $8.7 $8.8 $9.0 $10.1 $11.4 $10.2 $10.3





Term Loan $41.5 $37.0 $122.8 $80.3 $60.2 $45.2 $33.9 $25.4 $19.1

Senior Bonds $132.8 $48.4 $44.4 $246.4 $216.4 $186.4 $156.4 $126.4 $96.4




Shareholders' Equity

Common Stock $9.4 $85.8 $92.5 $77.2 $77.2 $77.2 $77.2 $77.2 $77.2



CHECK (L+SE-A) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


CASH FLOW STATEMENT


Net Income(Loss) NA $45.3 $46.9 ($0.2) $28.0 $35.0 $37.9 $32.1 $34.5


Decrease/(Increase) in Accounts Recievable NA $7.0 ($0.9) $5.1 ($3.5) ($0.1) ($0.1) ($0.1) ($0.2)





(Increase)/Decrease in Accounts Payable NA $1.1 $6.9 $5.1 ($3.3) $0.4 $0.6 $0.9 $0.6






Net Change in Working Capital NA $33.4 $4.0 $7.0 ($13.2) $6.3 ($0.9) ($4.0) ($3.9)








Change in Revolving Credit NA ($115.3) ($26.8) ($177.0) $10.8 -$10.8 $0.0 $0.0 $0.0


Net Cash Provided by Financing Activity NA ($127.8) $61.7 ($32.9) ($39.3) ($55.8) ($41.3) ($38.5) ($36.4)



End Cash NA $9.6 $9.7 $48.2 $48.2 $53.2 $72.8 $87.5 $107.9

DEBT TABLE:

Change in Cash Before RCF NA $142.6 $46.3 $255.0 ($10.8) $15.8 $19.7 $14.7 $20.4

RCF Beginning Balance $319.1 $319.1 $203.8 $177.0 $0.0 $10.8 $0.0 $0.0 $0.0

RCF (Paydown)/Additional Borrowing $0.0 ($115.3) ($26.8) ($177.0) $10.8 ($10.8) $0.0 $0.0 $0.0

RCF Ending Balance $319.1 $203.8 $177.0 $0.0 $10.8 $0.0 $0.0 $0.0 $0.0

RCF Interest Rate NA NA NA NA 3.50% 4.00% 4.50% 5.00% 5.50%

RCF Interest Expense NA NA NA NA $0.2 $0.2 $0.0 $0.0 $0.0

Term Loan Beginning Balance NA $41.5 $37.0 $122.8 $80.3 $60.2 $45.2 $33.9 $25.4

Term Loan (Paydown)/Additional Borrowing NA ($4.5) $85.8 ($42.5) ($20.1) ($15.1) ($11.3) ($8.5) ($6.4)

Term Loan Ending Balance NA $37.0 $122.8 $80.3 $60.2 $45.2 $33.9 $25.4 $19.1

Term Loan Interest Rate NA NA NA NA 5.00% 5.50% 6.00% 6.50% 7.00%

Term Loan Interest Expense NA NA NA NA $3.5 $2.9 $2.4 $1.9 $1.6

Senior Bonds Beginning Balance NA $132.8 $48.4 $44.4 $246.4 $216.4 $186.4 $156.4 $126.4

Senior Bonds (Paydown)/Additional Borrowing NA ($84.4) ($4.0) $201.9 ($30.0) ($30.0) ($30.0) ($30.0) ($30.0)

Senior Bonds Ending Balance NA $48.4 $44.4 $246.4 $216.4 $186.4 $156.4 $126.4 $96.4

Senior Bonds Interest Rate NA NA NA NA 7.6% 7.6% 7.6% 7.6% 7.6%

Senior Bonds Interest Expense NA NA NA NA $17.6 $15.4 $13.1 $10.8 $8.5

Total Ending Debt $493.4 $289.3 $344.3 $326.7 $287.4 $231.5 $190.2 $151.8 $115.4

Total Interest Expense $33.9 $16.4 $12.4 $19.6 $21.3 $18.5 $15.4 $12.7 $10.0

Interest Earned on Cash $0.0 $0.0 $0.0 $0.0 $0.96 $1.0 $1.3 $1.6 $2.0



Sales Growth % NA -4.3% 5.9% 4.8% -1.0% 0.8% 1.3% 1.5% 1.8%








Inventory Days 7.5 10.7 12.0 9.6 8.5 9.5 10 10 10



Other Assets $63.7 $69.0 $72.5 $78.7 $75.0 $75.0 $75.0 $75.0 $75.0








Asset Dispositions
















Revenue $1,312.6 $1,322.4 $1,339.0 $1,359.0 $1,382.8EBIT 63.5 71.3 72.5 60.4 61.1

Depreciation and Amortization 63.9 65.8 67.5 69.3 71.1EBITDA $127.4 $137.1 $140.0 $129.7 $132.2Capital Expenditures (39.4) (46.3) (43.5) (44.2) (44.9)Working Capital Requirements (3.6) 6.3 (0.9) (4.0) (3.9)


Revenue $248.13 $1,322.4 $1,339.0 $1,359.0 $1,382.8

EBIT $12.0 $71.3 $72.5 $60.4 $61.1Less: Taxes (4.2) (25.0) (25.4) (21.1) (21.4)

Debt-Free Earnings $7.8 $46.3 $47.1 $39.3 $39.7Less: Capital Expenditures (7.4) (46.3) (43.5) (44.2) (44.9)Less: Working Capital Requirements (0.7) 6.3 (0.9) (4.0) (3.9)Add: Depreciation and Amortization 12.1 65.8 67.5 69.3 71.1




TEV - Sensitivity Analysis####### 6.0x 7.0x 8.0x 9.0x 10.0x11.3% 720.2 804.7 889.2 973.7 1,058.210.3% 744.3 832.1 919.8 1,007.6 1,095.39.3% 769.6 860.7 951.9 1,043.1 1,134.2

8.3% 796.0 890.7 985.5 1,080.2 1,175.07.3% 823.6 922.1 1,020.6 1,119.1 1,217.7


8.3% 517.5 612.2 707.0 801.7 896.57.3% 545.1 643.6 742.1 840.6 939.1

Share Price- Sensitivity $10.92 6.0x 7.0x 8.0x 9.0x 10.0x11.3% $7.2 $8.6 $9.9 $11.3 $12.610.3% $7.6 $9.0 $10.4 $11.8 $13.29.3% $8.1 $9.5 $10.9 $12.4 $13.8

8.3% $8.5 $10.0 $11.4 $12.9 $14.47.3% $8.9 $10.5 $12.0 $13.5 $15.1



8.3% 0.6x 0.7x 0.8x 0.8x 0.9x 7.3% 0.6x 0.7x 0.8x 0.9x 0.9x

Current Year TEV/EBITDA - Sensitivity$7.47 6.0x 7.0x 8.0x 9.0x 10.0x


7.3% 6.5x 7.2x 8.0x 8.8x 9.6x 0.0% 8.4x 9.4x 10.5x 11.5x 12.5x

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Terminal Value $1,057.57Discount Period 4.19Discount Factor @ 9.3% 0.69








Key Assumptions


03/28/13 Transaction/Valuation Date$1,325.8 Revenue Last Fiscal Year 6/5/12

35.0% Tax Rate





$10.92 Implied Share Price10.93

Dilutive Shares

Dilutive

Options Class #Options WA Price SharesA 2.732 $8.05 0.72B 0.00C 0.00D 0.00E 0.00F 0.00Total 2.732 0.72

DilutiveConvert. Class Face Amount Conversion Price Shares

A - B - C - D - E - F -

Total $0.0 -






WACC 9.28%


US 2012 Notes $250.0 100.0% 7.63% 7.63%0.0% 0.00%0.0% 0.00%0.0% 0.00%0.0% 0.00%0.0% 0.00%0.0% 0.00%

Total $250.0 100% 7.63%


Public Company Valuation - Babson College Project

Economy & Finance

Transcript of Public Company Valuation - Babson College Project