The average 2019 EBITDAR margin for the $1B+ chains improved slightly to 18.8% (but remains near the 17 year low) due to slightly lower COGS and flat labor costs.
Unit Level Trends
RR’s cash flow stress model provides a forecast of restricted period operations and full year 2020 free cash flow for each $1B+ brand under coverage. Our data shows better results for QSR chains with a higher % of drive-thru with more cash flow stress for sit-down chains.
We take a look at the variation in valuation multiples over time – a variable that is a key concern to buyers, sellers & financiers.