1H18 Valuation Results are In

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Click here to start franchisee valuation survey Results from RR's 1H18 Valuation Survey While the 1H:18 unit level franchisee valuation multiple increased because of a scarcity of deals and an abundance of capital, the absolute level remains beneath 2016 levels. 6-month outlook is pressured by prospects of higher labor, food and borrowing costs.​ 1H18 segment results must be considered from both an absolute level perspective and in terms of sequential change.  Absolute multiples for the QSR sandwich & coffee/bakery segments are highest which reflects the inclusion of some of the largest, most recognizable brands. Multiple growth was highest for: fast casual which suggests that this business model is still in vogue; and family dining which benefits from turnarounds at IHOP & Denny's. Conversely, pizza & sub-sandwich segments are pressured by struggles at Papa John's and Subway’s return to discounting ($4.99 Footlongs).  While there was some recent investor 2nd guessing in terms of the validity of an asset-light franchisor model in an operating environment marked by rising costs, it seems like Wall Street has satisfied itself that franchisee health is OK for now (reflected by +11% increase in 1H18 multiples). Click here to listen to RR/UBS discussion of the state of franchisee health. Source: RR's June 2018 Valuation Report (outline) Click here to start franchisee valuation survey Responses will be kept anonymous & participants will receive complimentary survey results   RR Resources Research Notes                                                    Presentations     Unit Level Trends                         Report Announcements RR Thermometer Insights               RR Thermometer Dashboard             New Product News                                                  Menu Pics                 Industry Events www.ChainRestaurantData.com Please pass on to your colleagues Disclaimer of Liability: Although the information in this report has been obtained from sources Restaurant Research® LLC believes to be reliable, RR does not guarantee its accuracy. The views expressed herein are subject to change without notice and in no case can be considered as an offer or solicitation with regard to the purchase or sales of any securities. Restaurant Research’s analysis and opinions are not a guarantee of the future performance of any company or individual franchisee.  RR disclaims all liability for any misstatements or omissions that occur in the publication of this report. In making this report available, no client, advisory, fiduciary or professional relationship is implied or established. This report is intended to provide an overview of the restaurant industry, but cannot be used as a substitute for independent investigations and sound business judgment. Copyright 2018.