Quick Service Restaurant (QSR) Franchise Multiples

by a searcher from Georgetown University

1 year ago

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!

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3 comments

searcher from The University of Chicago - Booth School of Business

I've seen $4m for 5x anecdotally

1 year ago | like reply | 0 likes

admin from Massachusetts Institute of Technology - MIT Sloan School of Management

^Searchfunder member‌ at BVR might be able to help you navigate the relevant transaction data available under the TRANSACTIONS tab at the top of this page. Thanks in advance Joe! :-)

1 year ago | like reply | 0 likes

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