Restaurant Finance Watch: The season of high expectations

Restaurant Finance Watch: The season of high expectations

NRN editor and restaurant finance expert Jonathan Maze breaks down what you should be watching in the industry this week. Connect with him on the latest finance trends and news at @jonathanmaze and [email protected] RELATED: • Report: Restaurants primed for growth in 2015 • High restaurant deal prices may slow pace of M&A • More restaurant finance news

Investors see gas prices falling and employment increasing, and they’ve been bidding up consumer stocks, including restaurants.

But valuations for many restaurant companies are now at historically high levels.

Brad Swanson, managing director for investment banking at KeyBanc Capital Markets, said the historical valuation for quick-service restaurants is an enterprise value multiple of 10 times cash flow. For casual-dining concepts, that average is 7.9.


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