Restaurant Investment

Restaurant Investment: Capital Calls

While we expect M&A activity to continue to pick up over the next five years, those leveraging the best insights regarding the evolution of the market landscape to inform a modernized and globally-oriented F&B investment thesis are set to lead (and even create) segments and categories. There’s plenty of capital

Modernization’s Impact on the Foodservice Investment Thesis

Creating a compelling and modernized investment thesis requires superior intelligence and insights relative to understanding the landscape and how the consumer and competition are being reshaped, from the decline of casual dining to the rise of new formats.  While other sectors have seen significant increases in productivity historically, improvements in the

What’s Driving All the Recent Public-to-Private Deals?

Since January 2017, nearly $15b worth of restaurant stocks in the U.S. delisted, as nine companies left public stock exchanges for private hands. The public-to-private deals come at the moment when very few restaurant companies are making initial public offerings. Over the same period, restaurant IPOs accounted for only $59m

Q3-2018 Restaurant Mergers and Acquisitions Update

Already in 2018, $1.5t has changed hands in mergers and acquisitions in North America and Europe. In foodservice, the number of deals is comparable to the first three quarters of 2017, and valuations remain in the 10x EBITDA range. The trends most impacting Q3-2018 restaurant mergers and acquisitions are: Consolidation:

10 Successful Foodservice Acquisition Strategies

M&A activity is reaching near-record highs in the U.S. and globally, and the hospitality industry is no exception. Deals in the food and beverage industry grew at a 9.7% CAGR between 2010 and 2017, while the restaurant portion of that sector enjoyed 6.6% growth over the same period.  Emerging brands

Restaurant Investors As Change Agents: Three Unfolding Disputes to Watch

Foodservice is a tough business. It takes more than “good food, good service, good atmosphere” to launch, grow, and maintain a successful restaurant operation. Capital is also necessary — and often a lot of it — especially for chains in their growth stages. Institutional investors, including private equity funds, step

Q2-2018 Restaurant Mergers and Acquisitions’ Theme: Consolidation

Q2-2018 restaurant mergers and acquisitions remained fast and furious. The deals announced align with many of the trends we’ve been tracking, from casual dining’s decline to the heat in restaurant investments — especially among middle-market companies. Mergers and Acquisitions Consolidating Casual-Dining Sector The four deals in casual dining in the

How Multi-Brand Portfolios Compare to Single-Concept Companies

One of the easiest ways for foodservice groups to increase revenue is to make new acquisitions, but our analysis shows that restaurant portfolios with fewer than four brands tend to reach higher total sales growth than those with four or more. Data for the top 100 foodservice groups in the

Middle-Market Restaurants Should Take on Investors to Expand

Even a decade after the Great Recession, restaurant commercial lending remains tight, but there’s still a tremendous amount of eager capital around the globe. Foodservice companies are increasingly turning to different sources to fund their restaurant expansions. Restaurants have proved particularly intriguing to private equity (PE) firms, and we’ve been approached

Stunning Examples of Restaurant Enterprise Value Enhancements

Restaurant enterprise value (EV) is easy to calculate: market cap + debt – cash.  It’s much harder to understand what causes EV to rise and fall. To help unravel this mystery, we examined EV enhancements among publicly traded restaurants over the past 20 years, looking for trends that produced long-