Restaurant Monthly February 2015 - TM Capital...

Restaurant MonthlyFebruary 2015

Restaurant Industry Commentary

16.2x 16.2x13.5x 13.5x

10.7x

14.6x12.2x 12.0x 11.8x

9.6x

—

5.0x

10.0x

15.0x

20.0x

Premium Dining Casual DiningFamily DiningFast CasualQSR

Public Market Performance (Latest Twelve Months)

Indices consist of all publicly-available information for restaurant operators in their respective price points. For full listing, please contact the TM Capital Restaurant Practice.

Recent Restaurant M&A Activity

12.3x 13.8x

8.5x 8.9x 7.8x

13.3x 13.3x

8.0x 9.1x 7.4x

—

5.0x

10.0x

15.0x 12.3x 13.8x

8.5x 8.9x 7.8x

13.3x 13.3x

8.0x 9.1x 7.4x

—

5.0x

10.0x

15.0x

Current Restaurant Valuations by Price Point (TEV / EBITDA)

($ in millions)

Closed / Announced Target Acquiror

Enterprise Value EBITDA / Value Multiple

Industry Segment

02/18/2015A BGR Holdings Chanticleer Holdings (NasdaqCM:HOTR) NA NA / NA Fast Casual02/13/2015 Cotton Patch Cafe Altamont Capital Partners NA NA / NA Fast Casual02/06/2015 5 Wendy's Restaurants in New Jersey The Briad Group NA NA / NA QSR

02/02/2015A 45 Domino's Restaurants in Indiana RPM Pizza NA NA / NA QSR01/21/2015 Mitchell's Fish Market Landry's Inc. $10.0 NA / NA Premium01/12/2015 The Wendy's Company, 9 Wendy's Locations Meritage Hospitality Group NA NA / NA QSR12/15/2014 Tim Hortons Inc. (TSX:THI) Burger King Worldwide, Inc. (NYSE:BKW) $12,046.0 $692.3 / 17.4x QSR11/04/2014 Einstein Noah Restaurant Group JAB Holding; BDT Capital $365.0 $35.44 / 10.3x Fast Casual10/31/2014 25 TGI Friday Restaurants in Texas and Colorado MarLu LC, Inc. NA NA / NA Casual10/16/2014 Peter Piper, Inc. CEC Entertainment NA NA / NA Family10/08/2014 30 Burger King Restaurants in North Carolina Carrols Restaurant Group, Inc. (NasdaqGS:TAST) NA NA / NA QSR09/18/2014 39 Burger King Restaurants in Ohio GPS Hospitality NA NA / NA QSR

In January, the restaurant industry generated its best comparable sales performance in over six years, with same-store sales and comparable traffic

increases of 6.1% and 2.4%, respectively, according to Blackbox Intelligence. In fact, every industry subsector in the TM Capital Same Store Sales

Index demonstrated positive—and improving—comparable performance for the fourth calendar quarter of 2014. While continued sales upticks can

be attributed largely to improving consumer sentiment and a mild winter relative to 2013, the industry’s continued success in implementing loyalty

programs, enhancing store level technology, and expanding menu offerings have no doubt affected performance. While no headline transactions

hit the press in January, the M&A landscape displayed a continuation of recent trends. Wendy’s announced plans to refranchise an additional

500 restaurants and Altamont Capital purchased Cotton Patch Café, a high-growth, 45-unit Texas-based restaurant chain. The publicly traded

universe of restaurant companies continues to trade at peak valuations, led by value-oriented, limited service and lower price point segments.

Median TEV / LTM EBITDA Median TEV / 2015E EBITDA

80

90

100

110

120

130

140

Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15

Segm

ent

Inde

x

S&P 500 QSR Fast Casual Family Dining Casual Dining Premium Dining

105

115

132

116

111

132

TM Capital’s Restaurant Practice

TM Capital Corp. is a partner-owned investment banking firm based in New York, Boston and Atlanta, which has completed over 250 transactions with a combined value in excess of $16 billion.

Since 1989, we have advised clients navigating a full range of critical transactions, including complex mergers, acquisitions, debt and equity financings, minority and majority recapitalizations,

restructurings, and advisory services including takeover defense, fairness and solvency opinions, valuations, as well as litigation support. We have built deep industry expertise in key sectors and

our team regularly publishes research highlighting current and emerging trends in targeted industries and markets. TM Capital is a member firm of M&A International Inc., the world’s leading

alliance of mid-market investment banks with over 600 M&A professionals in 42 countries. For more information, visit www.tmcapital.com.

Michael P. Locker Managing Director

[email protected] 404-995-6252

James S. Grien President and CEO


Philip S. Krieger Vice President


Recent TM Capital Restaurant Experience

Same Store Sales by Price Point

(12.5%)

(10.0%)

(7.5%)

(5.0%)

(2.5%)

―

2.5%

5.0%

7.5%

10.0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Sam

e St

ore

Sale

s G

row

th

QSR Fast Casual Family Dining Casual Dining Premium Dining

20132009 2010 2011 20122008 2014Sa

me

Stor

e Sa

les

Gro

wth

(100%) (80%) (60%) (40%) (20%) ― 20% 40% 60% 80% 100%

Q1 '08Q2 '08Q3 '08Q4 '08Q1 '09Q2 '09Q3 '09Q4 '09Q1 '10Q2 '10Q3 '10Q4 '10Q1 '11Q2 '11Q3 '11Q4 '11Q1 '12Q2 '12Q3 '12Q4 '12Q1 '13Q2 '13Q3 '13Q4 '13Q1 '14Q2 '14Q3 '14Q4 '14

(100%) (80%) (60%) (40%) (20%) ― 20% 40% 60% 80% 100%


(100%) (80%) (60%) (40%) (20%) ― 20% 40% 60% 80% 100%


(100%) (80%) (60%) (40%) (20%) ― 20% 40% 60% 80% 100%


Qui

ck S

ervi

ceCa

sual

Din

ing

Prem

ium

Din

ing

Quarterly Gainers & Losers by Price Point

Fam

ily D

inin

gFa

st C

asua

l

Decliners / Gainers

(100%) (80%) (60%) (40%) (20%) ― 20% 40% 60% 80% 100%


www.tmcapital.com

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Boston200 Clarendon Street25th FloorBoston, MA 02116Tel: 617.259.2200

Atlanta15 Piedmont Center NE Suite 1010Atlanta, GA 30305 Tel: 404.995.6230

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