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Industry Update: Restaurant M&A – August, 2015

August, 2015

For restaurant M&A year-to-date 2015, strategic buyers accounted for 75% of restaurant M&A transactions. During 2014, strategic buyers accounted for just over 80% of the transactions.

For announced transactions (albeit a limited sample size), restaurant multiples saw a modest increase from 10.1x EBITDA and 0.9x revenue in 2014 to 11.1x EBITDA and 1.2x revenue year-to-date 2015.

Peakstone Fast Casual and Coffee indices continue to outperform other restaurant categories as well as the S&P 500.

Notable publicly announced 2015 M&A transactions:
– Brinker International entered into a definitive agreement to acquire Pepper Dining for approximately $106 million.
– McCormick & Co. signed a definitive agreement to acquire One World Foods for approximately $100 million.
– NRD Capital Management signed a definitive agreement to acquire Frisch’s for approximately $177 million.
– Levy Acquisition Corp. entered into a definitive agreement to acquire Del Taco Holdings for $500 million.
– AMC Wings, Inc. entered into a definitive agreement to acquire A Sure Wing, L.L.C. for $54 million.

Notable IPO’s include: Shake Shack, Wingstop, Bojangles and Carrols Restaurant Group, Inc.

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