Unit Economics Report - Restaurant Research, LLC

Industry Data Report
Unit Economics – 2014/2015
 RR’s Industry Data Report on Unit Economics provides: (1) FYE 2013 AUV along with
COGS, Labor, Royalty, Advertising and EBITDAR margin estimates for 41 chains; (2) a 5year history of unit economic performance; (3) an overview of the major components
impacting margins; and (4) aggregate G&A, rent and leverage ratios based on RR’s annual
lender survey.
 Report highlights: (1) Aggregate EBITDAR margins contracted modestly during 2013 as
an increase in AUVs and slight decline in COGs was more than off-set by higher labor,
advertising and other operating costs; (2) we believe the EBITDAR outlook for 2014
remains negative in light of significantly higher food costs and rising minimum wages at the
state level (although some of this will be off-set by menu price increases); (3) higher G&A
expense from our survey suggests further EBITDA (post G&A) margin pressure; and (4)
franchisee leverage levels increased, but coverage ratios remain solid with lenders reporting
minimal delinquencies.
Table of Contents
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Pages
Unit Economic Detail by Chain
2013 Unit Economic Detail by Chain
2
5-Year (2009 – 2013) Unit Economic Summary by Chain
3
Unit Economic Analysis
Executive Summary
4
Sales & Pricing Power
5
Food Costs & Commodities
6
Labor & Minimum Wage
7
EBITDAR
9
Franchisee G&A, Rent and Leverage Benchmark Data
10
Franchisee vs. Company Unit Economic Performance
11
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 2014 Restaurant Research®
LLC. All rights reserved.
IDR: Unit Economics 2014
Source: RR Estimates
Page 2
IDR: Unit Economics 2014
Source: RR Estimates
Page 3
Unit Economic Executive Summary
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IDR: Unit Economics 2014
Source: RR Estimates
Page 4
Sales & Pricing Power
IDR: Unit Economics 2014
Source: RR Estimates
Page 5
Food Costs & Commodities
Annual Commodity & Pricing Outlook
Concept
Outback
Panera Bread
Papa John's
Popeyes
Red Robin
Ruby Tuesday
Sonic Drive-In
Starbucks
Texas Roadhouse
Wendy's
Average
IDR: Unit Economics 2014
Source: RR Estimates
FYE
Commodities
Pricing
Page 6
Labor & Minimum Wage
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IDR: Unit Economics 2014
Source: RR Estimates
Page 7
IDR: Unit Economics 2014
Source: RR Estimates
Page 8
EBITDAR
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IDR: Unit Economics 2014
Source: RR Estimates
Page 9
Franchisee G&A, Rent and Leverage Benchmark Data
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IDR: Unit Economics 2014
Source: RR Estimates
Page 10
Franchisee vs. Company Unit Economic Performance
IDR: Unit Economics 2014
Source: RR Estimates
Page 11
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Copyright: This Restaurant Research LLC document is copyrighted material. Copyright 2014 Restaurant Research® LLC.
All rights reserved.
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 judgment.
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