• RR’s Industry Data Report on Unit Economics provides: (1) FYE 2018 unit level AUV along with COGS, labor, royalty, advertising, other operating and EBITDAR margin estimates for 46 chains; (2) a 5-year history of unit economic performance; (3) an analysis of food and labor cost drivers; and (4) aggregate G&A margins, rent margins and leverage ratios based on RR’s annual lender survey. • Report highlights: (1) Average 2018 EBITDAR margin for the $1B+ chains came in even with 2017 at 18.8% (the lowest level since 2008) and it is notable that lower COGS were fully off-set by higher labor costs; (2) at the EBITDA level, lower G&A expense helped to off-set higher rent based on our lender survey; (3) franchisee leverage levels remain elevated but coverage ratios are solid with lenders reporting minimal delinquencies; and (4) 2019 EBITDAR margin pressure reflects rising labor costs and slightly elevated commodity costs aggravated by increased industry discounting through 1H19, slightly off-set by modest same store sales growth prospects. Table of Contents Pages Unit Economic Detail by Chain ➢ 2018 Unit Economic Detail by Chain 2 ➢ 5-Year Unit Economic Summary by Chain & Rank by EBITDAR $ 3 Unit Economic Analysis ➢ Sales 4-5 ➢ COGS 6-7 ➢ Labor 8-9 ➢ EBITDAR 10 ➢ Franchisee G&A, Rent and Leverage Benchmark Data 11 ➢ Franchisee vs. Company Unit Economic Performance 12 ➢ Appendix - Minimum Wage & Tip Credits by State 13-14 ➢ RR Overview 15 Data in spreadsheet form available at http://www.ChainRestaurantData.com Copyright: This Restaurant Research LLC document is copyrighted material. Due to the No Electronic Theft (NET) Act of 1997, electronic forwarding or other forms of redistribution, without the express permission of Restaurant Research LLC, are violations of law and could be subject to fines of up to $250,000 and up to five years of imprisonment, even when no financial gain or commercial advantage accrues to the forwarder/re-distributor. Copyright 2019 Restaurant Research® LLC. All rights reserved. I I n n d d u u s s t t r r y y D D a a t t a a R R e e p p o o r r t t Unit Economics – 2019 Report Outline
Transcript
• RR’s Industry Data Report on Unit Economics provides: (1) FYE 2018 unit level AUV
along with COGS, labor, royalty, advertising, other operating and EBITDAR margin
estimates for 46 chains; (2) a 5-year history of unit economic performance; (3) an analysis of
food and labor cost drivers; and (4) aggregate G&A margins, rent margins and leverage
ratios based on RR’s annual lender survey.
• Report highlights: (1) Average 2018 EBITDAR margin for the $1B+ chains came in even
with 2017 at 18.8% (the lowest level since 2008) and it is notable that lower COGS were
fully off-set by higher labor costs; (2) at the EBITDA level, lower G&A expense helped to
off-set higher rent based on our lender survey; (3) franchisee leverage levels remain elevated
but coverage ratios are solid with lenders reporting minimal delinquencies; and (4) 2019
RR Unit Economic Summary (Ranked by Change in EBITDAR 2014 - 2018)
Copyright: This publication may not be reproduced, retransmitted electronically, including via email, intranet or internet or copied in any form, in whole or part, without prior written permission, whether for internal business use or otherwise. Violators risk criminal penalties and civil damages of up to $250,000 per
offense. We vigorously prosecute copyright infringers. Copyright 2019 Restaurant Research® LLC. All rights reserved.
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 analyses 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.
2018Change in EBITDAR
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2018 Sales Overview
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2019 Sales Outlook
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2018 COGS Overview
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2019 COGS Outlook
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IDR: Unit Economics Source: RR Estimates Page 8
2018 Labor Overview
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2019 Labor Outlook
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2018 EBITDAR Overview
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Franchisee G&A, Rent & Leverage Benchmark Data
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Franchisee vs. Company Unit Economic Performance
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Appendix - Minimum Wage & Tip Credits by State
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Change in Minimum Wage by State (2015 - 2019)
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Copyright: This Restaurant Research LLC document is copyrighted material. Due to the No Electronic Theft (NET) Act of
1997, electronic forwarding or other forms of redistribution, without the express permission of Restaurant Research LLC, are
violations of law and could be subject to fines of up to $250,000 and up to five years of imprisonment, even when no financial
gain or commercial advantage accrues to the forwarder/re-distributor. Copyright 2019 Restaurant Research® LLC. All rights
reserved.
Sources: All data represents RR estimates which are derived from various private and public sources.
Disclosure: Restaurant Research LLC often sells report subscriptions to concepts under our coverage.
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 analyses 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
