Report Coverage:
RR’s Industry Data Report on Unit Economics provides: (1) FYE 2022 unit-level AUV along with COGs, labor, royalty, advertising, other operating and EBITDAR margin estimates for 47 chains; (2) a 5-year history of unit economic performance; (3) an analysis of food and labor cost drivers; (4) leverage ratio ranges from RR’s annual lender survey; (5) median G&A & rent margins; and (6) an overview of minimum wage trends.
Conclusions:
- The average 2022 EBITDAR margin for the $1B+ Chains declined -2.1% to an all-time low because of higher COGs (+1.25%), labor (+0.65%) and other operating costs (+0.2%), despite higher prices and sales leverage.
- Notably, even though the 2022 average unit-level EBITDAR dollar amount declined -5.6% to $392k, this amount represents the 3rd best results in RR’s history because of a record high AUV.
- 1H:23 store-level margins for the $1B+ publicly traded restaurant chains improved +2.5% to 18.3% due to the benefit of higher sales and lower costs (COGS -1.35%, labor -0.8% and rent & other op. costs -0.4%).
- Store-level margin outlook benefits from a favorable commodity cost outlook through 2023.
- Franchisee leverage levels remain healthy.
Order Report
