Restaurant Monthly April 2015 - TM Capital Corp. · 03/18/2015 BGR Holdings Chanticleer Holdings...
2
Restaurant Monthly April 2015 Restaurant Industry Commentary 15.7x 18.5x 13.3x 13.1x 9.7x 14.4x 15.1x 11.4x 11.2x 9.5x — 5.0x 10.0x 15.0x 20.0x Premium Dining Casual Dining Family Dining Fast Casual QSR 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 Current Restaurant Valuations by Price Point (TEV / EBITDA) ($ in millions) Closed / Announced Target Acquiror Enterprise Value EBITDA / Value Multiple Industry Segment 04/17/2015 Macaroni Grill RedRock Partners $8.0 NA / NA Casual 04/02/2015 Catalina Restaurant Group Food Management Partners NA NA / NA Casual 04/01/2015 100 Jamba Juice Store Vitaligent, LLC $36.0 NA / NA QSR 03/18/2015 BGR Holdings Chanticleer Holdings (NasdaqCM:HOTR) NA NA / NA Fast Casual 03/10/2015 Hamburger Mary's Phoenix Investors NA NA / NA Casual 03/12/2015A Del Taco Holdings Levy Acquisition Corp. $500.0 NA / NA Casual 03/12/2015A 26 Denny's Restaurants RJC, LLC NA NA / NA Family 03/12/2015 23 Jamba Juice Stores Jamba, Inc. (NasdaqGM:JMBA) NA NA / NA QSR 03/11/2015 KBP Boathouse, Victory Park, OFS NA NA / NA QSR 03/06/2015 T-Bird Restaurant Group H.I.G. Capital NA NA / NA Casual 02/13/2015 Cotton Patch Cafe Altamont Capital Partners NA NA / NA Fast Casual 02/06/2015 5 Wendy's Restaurants in New Jersey The Briad Group NA NA / NA QSR The restaurant industry continued its trend of positive momentum through March, generating positive same store sales of 0.8% for the month and 2.8% for the quarter, according to Blackbox Intelligence. Although comparable traffic for the quarter declined slightly (0.6%), operators are confident that spring—and a departure from the nasty weather that plagued the country in January and February—will flip this trend and serve as an additional tailwind to same store sales growth. Entropy is the major theme in QSR these days, particularly as the segment seeks to find its place against the rising tide of Fast Casual competitors. Long time king, McDonalds, will be detailing its turnaround plans in May after new CEO, Steve Easterbrook, shuttered 350 “heavy loss maker” stores in the first quarter. YUM! Brands is doubling down on KFC’s comeback, investing $185 million in a deal to take control of the brand’s marketing from its franchisees. Burger King has also been on a tear—recently announcing its best same store sales results in seven years. M&A activity maintained a steady pace throughout March and into the first half of April. Jamba Juice’s divestiture of 100 units to existing franchisee, Vitaligent, LLC, marks the beginning of the company’s refranchising efforts. Public markets remain strong, as Quick Service biscuit concept Bojangle’s and Upscale-Casual Brazilian steakhouse Fogo de Chao both consider IPO’s. Median TEV / LTM EBITDA Median TEV / 2015E EBITDA 80 90 100 110 120 130 140 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 Segment Index S&P 500 QSR Fast Casual Family Dining Casual Dining Premium Dining 116 112 130 108 104 121
Transcript of Restaurant Monthly April 2015 - TM Capital Corp. · 03/18/2015 BGR Holdings Chanticleer Holdings...
Restaurant MonthlyApril 2015
Restaurant Industry Commentary
15.7x18.5x
13.3x 13.1x
9.7x
14.4x 15.1x
11.4x 11.2x 9.5x
—
5.0x
10.0x
15.0x
20.0x
Premium Dining Casual DiningFamily DiningFast CasualQSR
Public Market Performance (Latest Twelve Months)
Indices consist of all publicly-available information for restaurant operators in their respective price points. For full listing, please contact the TM Capital Restaurant Practice.
Recent Restaurant M&A Activity
12.3x 13.8x
8.5x 8.9x 7.8x
13.3x 13.3x
8.0x 9.1x 7.4x
—
5.0x
10.0x
15.0x 12.3x 13.8x
8.5x 8.9x 7.8x
13.3x 13.3x
8.0x 9.1x 7.4x
—
5.0x
10.0x
15.0x
Current Restaurant Valuations by Price Point (TEV / EBITDA)
($ in millions)
Closed / Announced Target Acquiror
Enterprise Value EBITDA / Value Multiple
Industry Segment
04/17/2015 Macaroni Grill RedRock Partners $8.0 NA / NA Casual04/02/2015 Catalina Restaurant Group Food Management Partners NA NA / NA Casual04/01/2015 100 Jamba Juice Store Vitaligent, LLC $36.0 NA / NA QSR03/18/2015 BGR Holdings Chanticleer Holdings (NasdaqCM:HOTR) NA NA / NA Fast Casual03/10/2015 Hamburger Mary's Phoenix Investors NA NA / NA Casual
03/12/2015A Del Taco Holdings Levy Acquisition Corp. $500.0 NA / NA Casual03/12/2015A 26 Denny's Restaurants RJC, LLC NA NA / NA Family03/12/2015 23 Jamba Juice Stores Jamba, Inc. (NasdaqGM:JMBA) NA NA / NA QSR03/11/2015 KBP Boathouse, Victory Park, OFS NA NA / NA QSR03/06/2015 T-Bird Restaurant Group H.I.G. Capital NA NA / NA 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 $692.30 / 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 QSR09/15/2014 S.B. Restaurant Company (Elephant Bar) CM7 Capital Partners, LLC NA NA / NA Casual08/25/2014 Rusty Taco Buffalo Wild Wings Inc. (NasdaqGS:BWLD) NA NA / NA Fast Casual08/21/2014 HDOS Enterprises Global Franchise Group NA NA / NA QSR07/28/2014 Red Lobster, Inc. Golden Gate Capital $2,113.0 $229.67 / 9.2x Casual
The restaurant industry continued its trend of positive momentum through March, generating positive same store sales of 0.8% for the month and 2.8% for the quarter, according to Blackbox Intelligence. Although comparable traffic for the quarter declined slightly (0.6%), operators are confident that spring—and a departure from the nasty weather that plagued the country in January and February—will flip this trend and serve as an additional tailwind to same store sales growth. Entropy is the major theme in QSR these days, particularly as the segment seeks to find its place against the rising tide of Fast Casual competitors. Long time king, McDonalds, will be detailing its turnaround plans in May after new CEO, Steve Easterbrook, shuttered 350 “heavy loss maker” stores in the first quarter. YUM! Brands is doubling down on KFC’s comeback, investing $185 million in a deal to take control of the brand’s marketing from its franchisees. Burger King has also been on a tear—recently announcing its best same store sales results in seven years. M&A activity maintained a steady pace throughout March and into the first half of April. Jamba Juice’s divestiture of 100 units to existing franchisee, Vitaligent, LLC, marks the beginning of the company’s refranchising efforts. Public markets remain strong, as Quick Service biscuit concept Bojangle’s and Upscale-Casual Brazilian steakhouse Fogo de Chao both consider IPO’s.
Median TEV / LTM EBITDA Median TEV / 2015E EBITDA
80
90
100
110
120
130
140
Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15
Segm
ent
Inde
x
S&P 500 QSR Fast Casual Family Dining Casual Dining Premium Dining
116112
130
108104
121
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.
James S. Grien President and CEO
[email protected] 404-995-6235
Philip S. Krieger Vice President
[email protected] 404-995-6242
Swin M. Moore Analyst
[email protected] 404-995-6241
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%
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%
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%
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
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%
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
www.tmcapital.com
New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360
Boston201 Washington Street32nd FloorBoston, MA 02108Tel: 617.259.2200
Atlanta3575 Piedmont Road NESuite 1010Atlanta, GA 30305 Tel: 404.995.6230
About TM Capital
![Erythos Holdings Pty Ltd [2015] SALC 34](https://static.fdocuments.us/doc/165x107/61bd4fcd61276e740b1185d5/erythos-holdings-pty-ltd-2015-salc-34.jpg)
