Quick Service Restaurant (QSR) Franchise Multiples

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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!

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Reply by a searcher
from The University of Chicago in Dallas, TX, USA
I've seen $4m for 5x anecdotally
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Reply by an admin
from Massachusetts Institute of Technology in Portland, OR, USA
^redacted‌ 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! :-)
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