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Industry Update: Restaurant Update: Spotlight on Fast Casual – May, 2016

May, 2016.

For YTD 2016, strategic buyers account for 90% of restaurant M&A transactions. In 2015, strategic buyers accounted for 80% of the transactions.

Restaurant multiples in announced transactions have been consistent over the past several years, at approximately 10x enterprise value to EBITDA and 1x enterprise value to revenue.

Recent notable publicly announced M&A transactions:

– Brinker International, Inc. entered into a definitive agreement to acquire Pepper Dining, Inc. for approximately $106 million.

– McCormick & Company, Incorporated signed a definitive agreement to acquire One World Foods, Inc. for approximately $100 million.

– NRD Capital Management signed a definitive agreement to acquire Frisch’s Restaurants, Inc. for approximately $177 million.

– Levy Acquisition Corp. entered into a definitive agreement to acquire Del Taco Holdings, Inc. for $500 million.

– AMC Wings, Inc. entered into a definitive agreement to acquire A Sure Wing, L.L.C. for $54 million.

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