Quick Service Restaurant (QSR) Franchise Multiples

September 28, 2023
by a searcher from Georgetown University in New York, NY, USA
I'm curious if anyone has any data point on QSR multiples for businesses in the range of $1-$3M EBITDA (net of all G&A) for mid/top tier brands (top 50 QSR chains with greater than 500 units). At what $ amount of EBITDA do the multiples begin to increase substantially?
My view was that 3-5x is an appropriate range for $1-$3M ebitda, and that multiple expansion begins after the ~$3M threshold. Obviously variability by brand (e.g. Taco Bell's trading for much larger multiples than Pizza Huts).
Any and all advice would be helpful!
from The University of Chicago in Dallas, TX, USA
from Massachusetts Institute of Technology in Portland, OR, USA