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

January, 2016

In 2015, strategic buyers accounted for 80% of restaurant M&A transactions. During 2014, strategic buyers accounted for just over 81% of the transactions.

For announced transactions, restaurant multiples saw a modest increase from 10.11x EBITDA and 0.86x revenue in 2014 to 10.13x EBITDA and 1.03x revenue in 2015.

– Notable publicly announced 2015 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.

Notable 2015 IPO’s include: Shake Shack, Wingstop and Bojangles.

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