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1
Restaurants I Industry Spotlight
Q3 2017
Restaurants I Q3 2017
Investment Banking I Industry Spotlight
2
Restaurants I Industry Spotlight
Q3 2017
Charlie Hurt
Managing Director
(404) 279-4518
Charles.Hurt@53.com
Red Farha
Principal
(704) 808-5129
Redmond.Farha@53.com
Investment Banking
John Shoffner
Managing Director
(704) 688-1813
John.Shoffner@53.com
John Boisture
Director
(704) 688-4522
John.Boisture@53.com
Bill Tyson
Co-Head, Capital Markets
(804) 916-1481
William.Tyson@53.com
Eric Welsch
Sponsor Relationship Mgmt.
(216) 274-5793
Eric.Welsch@53.com
Sponsor Coverage
Mike Brothers
Managing Director (DCM)
(312) 704-7362
Michael.Brothers@53.com
Katie Marano
Vice President (DCM)
(312) 704-7328
Katherine.Marano@53.com
Debt & Equity Capital Markets
Mike Ryan
Managing Director (ECM)
(615) 687-3123
Michael.Ryan@53.com
Susannah Lunke
Director (ECM)
(615) 687-3047
Susannah.Lunke@53.com
Craig Wolf
C&R Group Head
(312) 704-2994
Craig.Wolf@53.com
Jeff Hoffmann
National Restaurant Vertical
(312) 704-6246
Jeff.Hoffmann@53.com
Corporate Banking
Consumer & Retail Investment Banking
Representative Transactions
Key Contacts Consumer & Retail Investment Banking
Fifth Third Securities’ Consumer & Retail Investment Banking Group advises middle market and mid-cap companies on M&A advisory, capital raising, and strategic alternatives in the following sectors:
Consumer Food, Beverage & Agribusiness
Restaurants Retail
Apparel, Accessories & Footwear
Building Products
Interior Furnishings
Personal & Household Products
Recreational Products
Consumer Services
Entertainment, Lodging & Leisure
Agricultural Inputs
Beverages
Dairy Products
Foodservice Distribution
Ingredients and Flavors
Packaged Food/ Snack
Protein Processing
Casual Dining
Coffee & Specialty
Family Dining
Fast Casual
Fine Dining & Polished Casual
Franchisees
Quick Service (QSR)
Apparel, Accessories & Footwear
Discount & Off-Price
Furniture & Furnishings
Grocery & Pharmacy
Internet & e-Commerce
Mass Merchandise
Specialty
$425,000,000
has been acquired by
Sell-Side Advisor
has received an investment from
Financial Advisor
Planet Fitness Midwest
$650,000,000
Senior Unsecured Notes
Co-Manager
$442,000,000
Senior Secured Credit Facilities
Joint Lead Arranger
$51,000,000
Senior Secured Credit Facilities
Lead Arranger
$74,000,000
Senior Secured Credit Facilities
Franchisee
Lead Arranger
$250,000,000
First and Second Lien Credit Facilities
Lead Arranger
has been acquired by
a portfolio company of
Financial Advisor
3
Restaurants I Industry Spotlight
Q3 2017 Economic Dashboard
National Unemployment Rate Real GDP Growth Additions to Non-Farm Payrolls
Retail Gas Prices Consumer Sentiment Index Housing Starts
Source: Bureau of Economic Analysis Source: Bureau of Labor Statistics Source: Bureau of Labor Statistics
Source: University of Michigan Source: Energy Information Administration Source: United States Census Bureau
(in $’s per gallon)
(in thousands of employees)
(in thousands of units)
5.0%
2.3%2.0%
2.6%2.0%
0.9% 0.8%1.4%
3.5%
2.1%1.4%
2.6%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
'14 '15 '16 '17
4.0%
5.0%
6.0%
7.0%
0
100
200
300
400
75
80
85
90
95
100
105
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
750
850
950
1,050
1,150
1,250
1,350
4
Restaurants I Industry Spotlight
Q3 2017
Same Store Sales (SSS) Growth
Food Prices ($ per pound)
LTM Share Price Performance
Restaurant Sector Insights
Source: S&P Capital IQ, Company Filings, Technomic
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
Sep-14 Sep-15 Sep-16 Sep-17
Cattle Chicken Pork
Already-Weak Comp Performance Exacerbated by Natural Disasters
SSS growth declined in August by 2.0%, driven by a 3.9% decline in guest traffic – a modest improvement over July (down 2.7%) but indicative of the broader Sector’s challenges
Restaurants with operations around the Gulf Coast expect to see significant drops in traffic as consumers recover from the storms
Even for those restaurants that have remained open, “business as usual” will not be restored for weeks or months
Hurricane Harvey’s impact on the Texas oil industry has caused gas prices to rise across the country, denting consumer wallets
Restaurants Turning to Delivery Service to Compete with Meal Kits
Restaurants have begun testing their own e-Commerce platforms to respond to new competitive tensions
Both BJ’s and T.G.I. Friday’s have announced tests for alcohol delivery services this quarter
Cracker Barrel announced plans to expand its own off-premise offerings as well
Coffee-oriented Businesses Lead M&A Deals in the Third Quarter
Nestle acquired a controlling interest in coffee maker and café operator Blue Bottle Coffee
Caribou Coffee, owned by JAB Holdings, acquired Bruegger’s Enterprises for an undisclosed price
The deal comes only months after JAB acquired Panera Bread, its seventh major coffee-related acquisition
Casual Dining Restaurant Deals Flood the Market
Multiple operators are reviewing strategic alternatives, often resulting in a sale, including Ruby Tuesday and Bravo Brio
Given the availability of Casual Dining assets, private equity buyers have been selective about their investments
“Non-traditional” buyers emerged in this round of consolidation as PE and strategic buyers have shied from challenged assets
$1.17
$0.89
$0.57
(2.0%)
0.0%
2.0%
4.0%
6.0%
8.0%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Full Service Restaurants Limited Service Restaurants
(10.0%)
0.0%
10.0%
20.0%
30.0%
Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Full Service Restaurants Limited Service Restaurants S&P 500
+9.4% +14.8% +16.7%
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Restaurants I Industry Spotlight
Q3 2017
(20.0%)
0.0%
20.0%
40.0%
60.0%
80.0%
Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17
Full Service Restaurants Limited Service Restaurants S&P 500
10.0x
15.0x
20.0x
25.0x
30.0x
Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17
Full Service Restaurants Limited Service Restaurants S&P 500
Public Equity Market Valuation Trends
5-Year Forward P/E Performance [1] 5-Year Share Price Performance
Sub-Sector Indices’ Share Price Performance [1]
Source: S&P Capital IQ as of September 29th, 2017 * Each index is comprised of the companies noted on page 12 [1] Forward P/E multiples in charts do not match the table, as 5-year performance chart is market capitalization weighted
+73.7%
+38.5%
+73.4%
18.3x 17.9x
24.7x
Median
Number of Enterprise Value Median Multiple Median Multiple
Sector/Sub-Sector Companies $ in Millions Revenue EBITDA LTM P/E Revenue EBITDA Forward P/E
Full Service Restaurants 24 $1,102 1.0x 8.8x 20.6x 0.9x 7.0x 19.5x
Casual Dining 13 2,052 1.0x 8.8x 20.0x 0.9x 7.0x 19.5x
Family Dining 4 1,102 1.3x 12.0x 24.4x 1.3x 10.6x 24.1x
Fine Dining & Polished Casual 7 328 0.9x 8.8x 20.6x 0.9x 6.5x 16.4x
Limited Service Restaurants 24 3,569 3.6x 15.0x 25.6x 3.6x 13.4x 28.2x
Coffee & Specialty 3 6,967 3.6x 15.5x 25.2x 3.7x 13.4x 25.6x
Quick Service 12 3,569 3.8x 15.0x 26.0x 3.6x 14.0x 28.2x
Fast Casual 9 289 0.8x 10.5x NA 0.8x 7.1x 33.2x
S&P 500 500 NM 2.4x 12.3x 26.6x 2.3x 11.2x 18.3x
Median TEV / LTM Multiples Median TEV / Forward Multiples
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Restaurants I Industry Spotlight
Q3 2017 Public Equity Market Valuation Trends (Cont’d)
Source: S&P Capital IQ as of September 29th, 2017 * Each index is comprised of the companies noted on page 12
14.0x
13.4x
10.6x
7.1x
7.0x
6.5x
25.5x
21.8x
21.3x
28.8x
17.5x
15.1x
3.3%
3.1%
2.0%
2.3%
0.8%
0.0%
25.9%
40.2%
13.7%
9.6%
12.9%
11.7%
15.6%
18.7%
11.4%
20.2%
15.4%
13.6%
EV / Forward EBITDA 5-Year Est. EPS Growth LTM EBITDA Margin P / 2017 EPS
Quick Service
Coffee & Specialty
Fast Casual
Family Dining
Fine Dining & Polished
Casual
Casual Dining
3-Year Avg. SSS Growth
Median: 8.9x Median: 21.6x Median: 2.1% Median: 13.3% Median: 15.5%
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Restaurants I Industry Spotlight
Q3 2017
8.0x
9.3x
8.7x
7.2x
8.1x8.4x 8.3x 8.4x
9.3x
9.9x 9.7x10.0x 10.2x
8.8x 8.7x9.0x
8.3x8.8x 9.0x
8.7x 8.7x 8.9x
9.6x9.3x
10.2x
8.5x
6.0x
8.0x
10.0x
12.0x
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD8/2016
YTD8/2017
Financial Buyers Strategic Buyers
0
4,000
8,000
12,000
16,000
20,000
24,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q 2016 3Q 2017
Under $25mm $25 to $500mm Above $500mm Undisclosed
U.S. M&A Volume and Valuation Trends
Median Transaction Multiples (Enterprise Value / LTM EBITDA)
Transaction Volume
Note: This data represents the entire U.S. market (all industries) Source: PitchBook, S&P Capital IQ, and S&P Capital IQ LCD
Recession Recession
’16 vs. ’17
▼ 15%
‘07 to ‘11 Median Financial = 8.4x Strategic = 8.8x
‘12 to ‘16 Median Financial = 9.3x Strategic = 8.9x
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Restaurants I Industry Spotlight
Q3 2017
8.6x10.0x 10.2x 9.5x
10.9x 11.1x9.8x 9.3x 9.5x
11.4x9.8x 9.5x
8.2x
9.8x 10.6x11.7x 11.1x
12.3x 11.7x10.0x
0.0x
5.0x
10.0x
15.0x
2009 2010 2011 2012 2013 2014 2015 2016 3Q2016 3Q2017
Middle Market > $1 Billion
$0
$100
$200
$300
1Q
200
9
2Q
200
9
3Q
200
9
4Q
200
9
1Q
201
0
2Q
201
0
3Q
201
0
4Q20
10
1Q
201
1
2Q
201
1
3Q
201
1
4Q
201
1
1Q
201
2
2Q
201
2
3Q
201
2
4Q20
12
1Q
201
3
2Q
201
3
3Q
201
3
4Q
201
3
1Q
201
4
2Q
201
4
3Q
201
4
4Q
201
4
1Q
201
5
2Q
201
5
3Q
201
5
4Q
201
5
1Q20
16
2Q
201
6
3Q
201
6
4Q
201
6
1Q
201
7
2Q
201
7
3Q
201
7
Middle Market > $1 Billion
0
250
500
750
1,000
1Q
200
9
2Q
200
9
3Q
200
9
4Q
200
9
1Q
201
0
2Q20
10
3Q
201
0
4Q
201
0
1Q
201
1
2Q
201
1
3Q
201
1
4Q
201
1
1Q
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2
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3Q
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2
4Q
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1Q
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2Q
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3
3Q
201
3
4Q
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3
1Q
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2Q
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3Q
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4Q
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4
1Q
201
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3Q
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1Q
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2Q
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7
The M&A market has remained fairly active for restaurants, though valuation has bifurcated between categories
Limited service franchisors have traded in the 14x – 21x range
Full service operators have traded in a wider, less predictable range
– DRI’s acquisition of Cheddar’s was driven by 10+ years of 20% growth
– Ignite was acquired out of Chapter 11 bankruptcy
– Bob Evans was separated from its branded foods division
Strategic buyers have been more active than financial buyers in limited service
Availability of debt financing and low cost of capital
Ability to generate synergies
Mature businesses with less attractive organic growth prospects
Recent focus on fast-Mexican concepts drives deal activity
JACK continues to evaluate strategic alternatives for Qdoba as the recent struggles of CMG are potentially weighing down valuation
Private equity firm Freeman Spogli & Co. acquired West Coast-based burrito and Tex-Mex chain Café Rio in September
Restaurant Sector M&A Trends
U.S. Consumer & Retail M&A Announced Deal Value ($ in billions) [1,2]
U.S. Consumer & Retail M&A Announced Deal Volume
U.S. Consumer & Retail M&A Closed Deal Average EV / EBITDA Multiple [1,2]
Source: Fifth Third Securities, S&P Capital IQ [1] Middle Market transactions defined by transactions with an enterprise value below $1 billion [2] U.S. Consumer & Retail transactions include Consumer Discretionary and Consumer Staples transactions, and exclude outlier multiples
Median Middle Market: $14.0
Median Middle Market: 10.0x
Median > $1 Billion: $26.2
Median > $1 Billion: 10.0x
9
Restaurants I Industry Spotlight
Q3 2017
Announced Enterprise LTM
Date Acquirer Target Value (EV) Revenue EBITDA Revenue EBITDA
08/24/17 Caribou Coffee Company Bruegger's Enterprises - - - - -
08/04/17 J. Alexander's Ninety Nine Restaurants, Inc. $199 $304 $30 0.7x 6.6x
06/06/17 Landry's Ignite Restaurant Group (OTCPK:IRGT) 55 550 17 0.1x * 3.3x *
04/05/17 Axum Capital Partners Back Yard Burgers - - - - -
04/05/17 JAB Holding Co. Panera Bread Co. 7,500 2,885 424 2.6x 17.7x *
03/27/17 Darden Restaurants (NYSE:DRI) Cheddar's Scratch Kitchen 780 - 75 - 10.4x
03/23/17 Oak Hill Capital Partners Checkers Drive-In Restaurants, Inc. 525 - - - -
02/21/17 Restaurant Brands International Inc. (NYSE:QSR) Popeyes Louisiana Kitchen, Inc. 1,815 267 89 6.8x * 20.5x *
01/24/17 Golden Gate Capital Bob Evans Farms, LLC 565 - - - 5.5x
10/26/16 Restaurant Brands New Zealand Ltd. (NZSE:RBD) Pacific Island Restaurants 105 120 19 0.9x 5.5x
10/10/16 [3]Thai Union Group Public Company Limited (SET:TU) Red Lobster Master Holdings, L.P. 1,265 2,479 144 0.5x 8.8x
09/08/16 Roark Capital Group Jimmy John's Franchise, LLC - - - - -
09/02/16 CenterOak Partners LLC Wetzel's Pretzels, LLC - - - - -
05/25/16 MTY Food Group (TSX:MTY) Kalaha Corp. (Multi-Concept Franchisee) 302 729 - 0.4x -
05/09/16 JAB Holding Co. Krispy Kreme Doughnuts, Inc. 1,298 519 73 2.5x 17.8x *
07/14/15 BC Partners Cote Restaurants 391 172 38 2.3x 10.4x
07/07/15 Casual Dining Group Las Iguanas 131 - - - -
05/22/15 NRD Capital Frisch's Restaurants, Inc. 173 216 24 0.8x 7.3x
03/12/15 Levy Acquistion Group (n.k.a. NasdaqCM: TACO) Del Taco Holdings 500 385 59 1.3x 8.5x
09/29/14 JAB Holding Co. and BDT Capital Partners, LLC Einstein Noah Restaurant Group 163 163 16 1.0x 10.3x
08/26/14 Burger King (n.k.a. NYSE:QSR) Tim Hortons Inc. 14,620 3,400 840 4.3x * 17.4x *
Median - Strategic 0.8x 8.8x
Median - Financial 1.3x 7.9x
Median - All 0.9x 8.5x
EV / LTM
Restaurant Sector Precedent M&A Transactions
Restaurant Sector Precedent M&A Transactions ($ in millions) [1,2]
M&A Deals in the Headlines
Source: Company Filings, S&P Capital IQ [1] * Excluded from mean and median [2] Green shading indicates strategic acquisition [3] SET:TU acquired a 25% minority stake from Golden Gate Capital
J. Alexander’s Acquires Ninety Nine Restaurants, Inc.
EV ($MM): $199
Revenue Multiple: 0.7x
EBITDA Multiple: 6.6x
Nestlé Acquires Blue Bottle Coffee
EV ($MM): $700 (Est.)
Revenue Multiple: N/A
EBITDA Multiple: N/A
Acquisition marks a departure from Nestlé’s previous strategy of focusing on in-house coffee brands such as Nespresso and Nescafé
Cements Nestlé’s position as the world’s largest coffee producer and gives the Company entry into the fast growing, super-premium, “third wave” coffee space
Financial terms not disclosed
Transactions completed or announced over the past three years
Ninety Nine Restaurants has weathered sector headwinds and posted market-beating SSS growth over the past three years
JAX cited similar cultures and Ninety Nine’s strong regional presence in the Northeast as key deal drivers
Marathon Partners, one of JAX’s largest shareholders, is challenging the deal
10
Restaurants I Industry Spotlight
Q3 2017
0
500
1,000
1,500
$0
$50
$100
$150
$200
$250
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17*
Deal Value ($) # of Deals Closed
Private equity exits increase significantly Year-over-Year
Q3 saw a strong uptick in PE exits compared to the same quarter in the prior year
Private equity investors, concerned about a market peak, are being opportunistic in seeking portfolio company exits
Private equity buyers are faced with strong industry headwinds
Recent sluggish organic growth in the restaurant industry fuels the need for M&A activity to drive returns
Investors may believe that restaurant margins will decline over time, as Amazon and other startups enter food delivery with a mission of lowering costs for consumers
Buyers have the dry powder necessary to make large acquisitions but remain hesitant
Private equity firms continue to sit on record levels of undeployed capital
While this excess cash can create a drag on returns for financial sponsors, overall concerns of a potential market correction and lack of enthusiasm about organic growth prospects have caused private equity buyers to remain wary in their deal making
Middle Market Private Equity Activity
U.S. Private Equity Deal Flow ($ in billions)
U.S. Consumer & Retail Private Equity Deal Flow ($ in billions)
U.S. Consumer & Retail Private Equity Exits ($ in millions)
Source: Fifth Third Securities, PitchBook ND – No Transaction Values Disclosed *3Q17 preliminary PitchBook data
$145.0 $100.0
$298.5 $196.8
$270.0
$142.2 $92.5
$267.5
$423.0
106 122
163 145
202 200 204
50 46
2010 2011 2012 2013 2014 2015 2016 3Q2016 3Q2017
Median Deal Size ($) # of Exits
$43.3 $50.4 $54.9
$78.5
$57.9
$117.7
$65.3
$16.8 $29.0
544 644 733 663 783882 795 203 140
2010 2011 2012 2013 2014 2015 2016 3Q2016 3Q2017
Capital Invested ($) # of Deals Closed
11
Restaurants I Industry Spotlight
Q3 2017
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
MM B-rated MM NR
6.12%
6.29%
Note: This data represents the entire U.S. middle market (all industries) Note: The middle market is defined as deal size < $100 million and borrower sales < $500 million [1] Includes both non-sponsored and sponsored transactions; sufficient data not available for MM NR loans in 1Q15 and 1Q17 Source: Bloomberg, S&P Capital IQ LCD, and Thomson Reuters LPC
U.S. Middle Market Loan Market Trends
Loan Volume: Low Level of Supply Continues ($ in billions) Non-Rated Term Loan Yields Tighten Further [1]
Covenant-Lite Volume Surges in 2Q17 ($ in billions) Leverage Multiples Remain Aggressive on Middle Market LBOs
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
Non-Sponsored Sponsored
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x1st Lien Debt to EBITDA Junior Debt to EBITDA
12
Restaurants I Industry Spotlight
Q3 2017 Appendix: Key Disclosures
Casual Dining
BJRI – BJ’s Restaurants, Inc.
BLMN – Bloomin’ Brands, Inc.
BWLD – Buffalo Wild Wings Inc.
CHUY – Chuy’s Holdings, Inc.
DAVE – Famous Dave’s of America Inc.
DIN – DineEquity, Inc.
DRI – Darden Restaurants, Inc.
IRG – Ignite Restaurant Group, Inc.
RRGB – Red Robin Gourmet Burgers Inc.
RT – Ruby Tuesday, Inc.
TXRH – Texas Roadhouse, Inc.
PLAY – Dave and Buster’s Entertainment, Inc.
EAT – Brinker International, Inc.
Family Dining
BH – Biglari Holdings Inc.
BOBE – Bob Evans Farms, Inc.
CBRL – Cracker Barrel Old Country Store, Inc.
DENN – Denny’s Corporation
Fine Dining & Polished Casual
BBRG – Bravo Brio Restaurant Group, Inc.
CAKE – The Cheesecake Factory Incorporated
DFRG – Del Frisco’s Restaurant Group, Inc.
FOGO – Fogo de Chao, Inc.
KONA – Kona Grill Inc.
RUTH – Ruth’s Hospitality Group Inc.
JAX – J. Alexander’s Holdings, Inc.
Limited Service Restaurants Full Service Restaurants
Coffee & Specialty
DNKN – Dunkin’ Brands Group, Inc.
JMBA – Jamba, Inc.
SBUX – Starbucks Corporation
Fast Casual
CMG – Chipotle Mexican Grill, Inc.
COSI – Cosi Inc.
HABT – The Habit Restaurants, Inc.
NDLS – Noodles & Company
PBPB – Potbelly Corporation
PNRA – Panera Bread Company
SHAK – Shake Shack Inc.
ZOES – Zoe’s Kitchen, Inc.
FRGI – Fiesta Restaurant Group, Inc.
Quick Service Restaurants (QSR)
BOJA – Bojangles’, Inc.
DPZ – Domino’s Pizza, Inc.
FRSH – Papa Murphy’s Holdings, Inc.
JACK – Jack in the Box Inc.
LOCO – El Pollo Loco Holdings
MCD – McDonald’s Corp.
PZZA – Papa John’s International Inc.
QSR – Restaurant Brands International Inc.
SONC – Sonic Corp.
WEN – The Wendy’s Company
YUM – Yum! Brands, Inc.
WING – Wingstop Inc.
13
Restaurants I Industry Spotlight
Q3 2017 Notes & Definitions
S&P 500 Index- A broad index that includes American Companies. EBITDA- A company's earnings before interest, taxes, depreciation, and amortization, is an accounting measure calculated using a company's net earnings, before interest expenses, taxes, depreciation and amortization are subtracted, as a proxy for a company's current operating profitability. Dry Powder- Refers to cash reserves kept on hand to cover future obligations or to purchase assets. GDP- Gross domestic product is the market value of the goods and services produced by labor and property located in the United States Consumer Sentiment Index- The University of Michigan Consumer Sentiment Index is a consumer confidence index published monthly by the University of Michigan. The index is normalized to have a value of 100 in December 1964 National Unemployment Rate- the percentage of the total labor force that is unemployed but actively seeking employment and willing to work. Non-Farm Payroll- Nonfarm payroll employment is a compiled name for goods, construction and manufacturing companies in the US. It does not include farm workers, private household employees, non-profit organization employees, or government employees . It is an economic indicator released monthly by the United States Department of Labor as part of a comprehensive report on the state of the labor market. Housing Starts- are the number of new residential construction projects that have begun during any particular month. The Economist- offers authoritative insight and opinion on international news, politics, business, finance, science, technology and the connections between them LBO -- leveraged buyout (LBO) is the acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loans, along with the assets of the acquiring company. Industrial Production Index (IPI)- is an economic indicator published by the Federal Reserve Board of the United States that measures the real production output of manufacturing, mining, and utilities Capital Goods Orders. Covenant-lite loans- means that debt is being issued, both personally and commercially, to borrowers with less restrictions on collateral, payment terms, and level of income. IRR-Internal Rate of Return.
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About Fifth Third Capital Markets
Fifth Third Capital Markets is the marketing name under which Fifth Third Bank and its subsidiary, Fifth Third Securities, Inc., provide certain securities and investment banking products and services. Banking products and services are offered by Fifth Third Bank. Securities products and services are offered by licensed securities representatives of Fifth Third Securities, Inc., who may be employees of Fifth Third Bank. Important notice This document has been prepared by Fifth Third Bank (“Fifth Third”) or one of its subsidiaries for the sole purpose of providing a proposal to the parties to whom it is addressed in order that they may evaluate the capabilities of Fifth Third to supply the proposed services. It is not intended to provide specific investment advice or investment recommendations and does not constitute either a commitment to enter into a specific transaction or an offer or solicitation, with respect to the purchase or sale of any security. The information contained in this document has been compiled by Fifth Third and includes material which may have been obtained from information provided by various sources and discussions with management but has not been verified or audited. This document also contains confidential material proprietary to Fifth Third. Except in the general context of evaluating our capabilities, no reliance may be placed for any purposes whatsoever on the contents of this document or on its completeness. No representation or warranty, express or implied, is given and no responsibility or liability is or will be accepted by or on behalf of Fifth Third or by any of its subsidiaries, members, employees, agents or any other person as to the accuracy, completeness or correctness of the information contained in this document or any other oral information made available and any such liability is expressly disclaimed. This document and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person in whole or in part without our prior written consent. Past performance is No Guarantee of Future Results. Fifth Third Capital Markets is a wholly owned subsidiary of Fifth Third Bank offering investment banking++, debt capital markets+, bond capital markets++, equity capital markets++, financial risk management+, and fixed income sales and trading++. Fifth Third Bank provides access to investments and investment services through various subsidiaries, including Fifth Third Securities. Fifth Third Securities is the trade name used by Fifth Third Securities, Inc., member FINRA/SIPC, a registered broker-dealer and registered investment advisor registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Securities and investments offered through Fifth Third Securities, Inc. and insurance products: + Services and activities offered through Fifth Third Bank ++ Services and activities offered through Fifth Third Securities, Inc © Fifth Third Bank 2017
Are Not FDIC Insured Offer No Bank Guarantee May Lose Value
Are Not Insured By Any Federal Government Agency Are Not A Deposit
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