Food and Beverage Industry Update September 2014 Member FINRA/SIPC www.harriswilliams.com Food and Beverage Industry Update September 2014 What We’re Seeing CONTENTS Market Update M&A activity in the food and beverage sector continued to carry momentum through the summer as several headline deals were announced in late August. HW&Co. anticipates an active marketplace for the remainder of the year as strategic and private equity buyers look to take advantage of current market conditions and aggressively pursue well positioned food & beverage companies. Activity remains strong in the natural/organic food industry, as General Mills acquired Annie’s. Further strategic activity included Burger King and Tim Horton’s reaching an agreement to merge. HW&Co. continues to see new deal activity, reinforcing the M&A market’s momentum. Equity markets are also ripe for food and beverage investing, with Shake Shack’s upcoming IPO on pace to receive a $1 billion+ valuation. INDUSTRY VITAL SIGNS EQUITY MARKET OVERVIEW M&A MARKET OVERVIEW DEBT MARKET OVERVIEW NOTABLE M&A ACTIVITY PUBLIC COMPARABLES EARNINGS CALENDAR GROUP OVERVIEW What We’ve Been Doing Closed HW&Co. Transactions has divested selected assets to a portfolio company of a portfolio company of a portfolio company of a portfolio company of has acquired has been acquired by and has been acquired by has been acquired by has been acquired by and a portfolio company of a portfolio company of a portfolio company of has been acquired by has been acquired by a portfolio company of a portfolio company of has been acquired by has been acquired by has been acquired by has been acquired by What We’re Reading Harris Williams & Co. is a leading advisor to the food and beverage market. Our significant experience covers a broad range of end markets, industries, and business models. This particular report focuses on trends and metrics in the following areas: • • • • • • • • • • • • • Agribusiness Baked and Prepared Goods Beverages Branded and Private Label Dairy Distribution Ingredients Meat and Protein Natural and Organic Processing Produce Restaurant and Retail Snacks General Mills Adds Organic Foods With Purchase of Annie’s CONTACTS General Mills is acquiring Annie’s for approximately $820 million. Annie’s investors will receive $46 a share in cash, 37% above its closing price on September 8th. Annie’s posted sales of $204 million in its most recent fiscal year. That compares with about $330 million in revenue for General Mills’ organicproduct division, which also includes Muir Glen tomatoes and Larabar energy bars. Large packaged-food companies are increasingly looking to natural and organic products to help spur growth. Access to the full article here. Glenn Gurtcheff | Managing Director [email protected] +1 (612) 359-2702 Burger King and Tim Hortons to Merge Ryan Budlong | Director [email protected] +1 (612) 359-2722 On August 27th, Burger King and Tim Hortons announced their intention to merge, creating the 3rd largest QSR chain as measured by system-wide sales. The companies expect the transaction to be highly synergistic, as both chains are nearly 100% franchised. The merger will provide Burger King with more exposure to the increasingly popular breakfast daypart and assist in fueling growth outside of the United States. Amid heightened scrutiny of tax inversion deals, Burger King says the plan to have the new company’s headquarters in Canada is strictly about growth and has nothing to do with potential tax savings. Access to the investor presentation here. Shake Shack Targeting $1 Billion IPO Leonard Green & Partners, the private equity group that owns Shake Shack via its Union Hospitality Group holding, may seek a valuation for $1 billion or more for the upcoming offering. This valuation would represent a multiple of about 50x 2014 EPS, similar to recent restaurant IPOs. Access to the full article here. Tim Alexander | Managing Director [email protected] +1 (612) 359-2716 Brant Cash | Vice President [email protected] +1 (612) 359-2709 Ryan Freeman | Vice President [email protected] +1 (612) 359-2703 Matt Whebbe | Vice President [email protected] +1 (612) 359-2727 www.harriswilliams.com 2 of 16 Food and Beverage Industry Vital Signs 250 Commodity Price Index Commodity Price Indices1 Wheat: 67.1% 200 Soybeans: 24.2% 150 Crude Oil: 33.9% 100 Corn: 15.4% 50 Aug-10 Feb-11 Aug-11 Corn Aug-13 Wheat Feb-14 Aug-14 Crude Oil Beef: 120 32.4% Pork: 110 20.8% Poultry: 11.5% 100 Jan-11 Jul-11 Jan-12 Beef Jul-12 Jan-13 Pork Poultry Jul-13 Jan-14 Jul-14 Sales Index 140 Restaurant: 24.1% 120 Grocery: 15.0% 100 80 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Restaurant Jan-13 Jul-13 Jan-14 Jul-14 Grocery 5.5 Inflation (%) Consumer Food Price Index Inflation2 Feb-13 130 90 Jul-10 Restaurant and Grocery Store Sales Indices4 Aug-12 Soybeans 140 Protein Price Index Protein Price Indices2,3 Feb-12 4.0 2.5 1.0 -0.5 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 3 of 16 Public Equity Market Overview Stock Price % ChangeEV/EBITDA % Change Industry and Segment Consumer and Retail Food and Beverage Inputs Key Trading Statistics5 3 Month Protein Processing Fruit and Vegetable Ingredients / Flavors Agribusiness Branded Processed Foods Private Label Foods Natural / Organic Foods Baked Goods / Snack Foods Dairy Non-Alcoholic Beverages Alcoholic Beverages Food Retail Grocery Distribution Foodservice Quick Service Restaurant Casual Dining Restaurant Fast Casual Pizza Beverage / Snack Retail Family Restaurant O verall Median 1 Year 3 Month 1 Year Current Valuation Stats Fwd PE Net Debt / LTM PE EV/EBITDA EBITDA (2.2%) 12.2% (1.1%) 3.8% (3.5%) 1.1% 1.3% 2.1% (4.1%) 5.2% (1.1%) (2.3%) 1.0% (2.0%) (1.7%) (9.0%) (5.2%) (2.3%) 8.4% 2.9% 29.9% 8.0% 20.6% 22.6% 8.8% 1.7% 16.7% 22.9% 9.8% 18.2% 12.3% (7.0%) 9.0% (15.9%) 18.2% 4.7% (5.8%) 21.4% 8.5% 5.2% (2.4%) 6.2% (3.7%) (0.1%) 2.1% (6.3%) 1.2% (0.6%) 15.1% 6.1% 5.4% 0.7% 0.7% 3.8% (1.5%) (8.5%) (2.9%) (3.1%) 7.2% 6.8% (1.4%) 16.8% 7.4% 33.6% 1.4% (6.7%) 1.3% 18.1% 18.0% 14.0% 3.1% 2.0% 23.9% 20.3% 10.9% 2.7% (8.5%) 6.2% 0.2% 20.1% 14.2x 21.3x 19.4x 14.6x 20.0x 20.2x 24.4x 18.8x 20.5x 20.0x 20.1x 19.8x 23.2x 20.1x 22.5x 19.3x 36.6x 22.8x 25.4x 19.9x 13.7x 26.5x 27.3x 16.5x 23.4x 26.3x 26.2x 25.5x 23.5x 21.6x 22.9x 19.1x 26.7x 27.8x 28.4x 22.7x 20.9x 26.4x 31.3x 19.2x 7.5x 13.6x 13.3x 11.9x 13.4x 14.0x 14.3x 12.2x 14.0x 14.0x 13.9x 6.9x 10.1x 11.0x 11.6x 11.1x 11.4x 14.4x 18.1x 9.8x 1.9x 3.0x 1.1x 1.1x 2.1x 3.1x 2.5x 2.8x 2.2x 1.6x 2.8x 2.4x 1.6x 3.3x 2.6x 2.4x 0.9x 2.8x 1.7x 2.1x (0.7%) 12.3% 0.2% 7.2% 20.1x 24.1x 12.2x 2.0x Protein Processing Baked Goods / Snack Foods Public Company Sector Performance5 Agribusiness Pizza S&P Ingredients / Flavors (One year change in stock price) Quick Service Restaurant Non-Alcoholic Beverages Natural / Organic Foods Alcoholic Beverages Dairy Grocery Distribution Branded Processed Foods Beverage / Snack Retail Fruit and Vegetable Family Restaurant Casual Dining Restaurant Private Label Foods Fast Casual Food Retail Foodservice -20.0% -10.0% 0.0% 10.0% Inputs 20.0% Food and Beverage 30.0% Consumer and Retail 40.0% 50.0% 60.0% 4 of 16 Public Equity Market Overview Recent Equity Offerings6 Ticker SNAK Transaction Type Follow-On Gross Proceeds ($mm) $38.2 Youngevity International Inc YGYI Convertible $4.4 07/30/14 Tyson Foods Inc TSN Convertible $1,500.0 07/30/14 07/30/14 Tyson Foods Inc TSN Follow-On $900.0 07/28/14 07/28/14 Avidus Management Group Inc AVD Follow-On $0.7 07/18/14 07/18/14 United Natural Foods Inc UNFI Follow-On $7.0 07/17/14 07/17/14 TreeHouse Foods Inc THS Follow-On $373.8 06/20/14 06/20/14 RiceBran Technologies RBIT Follow-On $7.5 06/12/14 06/12/14 Russell Breweries Inc RB Follow-On $0.5 06/02/14 06/02/14 Captiva Verde Industries Ltd VEG.H Follow-On $0.5 Future Acquisitions Pay Fees & Expenses Working Capital Paymnt on Borrowings Working Capital Investment/Loan Working Capital 05/30/14 05/30/14 MamaMancini's Holdings Inc MMMB Follow-On $2.4 General Corp. Purp. 05/29/14 05/29/14 Thinspace Technologies Inc THNS Convertible $0.3 General Corp. Purp. 05/21/14 05/21/14 Post Holdings Inc POST Convertible $250.0 General Corp. Purp. Acquisitions Close Date Filing Date Issuer 09/05/14 09/05/14 Inventure Foods Inc 08/04/14 08/04/14 07/30/14 Use of Funds Other General Corp. Purp. Acquisition Fin. Pay Fees & Expenses Acquisition Fin. Pay Fees & Expenses Future Acquisitions General Corp. Purp. Secondary 130 Food and Beverage Industry Stock Performance5 120 23.8% 19.8% 110 12.6% 8.2% 100 (4.3% ) (3.8% ) 90 80 Sep-13 Nov-13 Jan-14 Apr-14 Jun-14 Restaurant Protein Processing/Dairy Natural/Organic Beverage Private Label Food Manufacturing S&P 500 Sep-14 5 of 16 M&A Market Overview Highlighted General Mills Acquires Annie’s Food and • General Mills will pay $46 cash per share for each Annie’s share, representing a 37% premium. Beverage M&A Transactions Enterprise Value: $821.4mm • Annie’s will be integrated into General Mills’ organic-product division, which did $330 million in revenue in its most recent fiscal year. Revenue Multiple: 3.9x • The transaction is expected to be highly synergistic and should boost General EBITDA Multiple: 38.6x Announced: September 8, 2014 Mills’ profit within the first year. Burger King and Tim Hortons to Merge • Burger King will pay C$65.50 cash and .8025 shares for each Tim Hortons share, representing a value of C$89.32 based on BKW’s closing as of August 22nd. • Post close, 3G Capital will own 51% of the new company, with Burger King shareholders owning 27% and Tim Hortons’ shareholders owning 22%. Enterprise Value: $11.9bn Revenue Multiple: 3.8x EBITDA Multiple: 15.4x Announced: August 27, 2014 • The offer price of C$89.32 per share is a 39% premium to Tim Hortons 30 day volume-weighted average share price. Coca-Cola Acquires Stake in Monster • The Coca-Cola Company will acquire a 16.7% percent stake in Monster for $2.15 billion in cash. • Coca-Cola can accumulate a maximum stake of 25% through open market transactions under the agreement. Enterprise Value: $12.9bn Revenue Multiple: 5.5x EBITDA Multiple: 18.8x Announced: August 14, 2014 Median Food and Bev. Transaction Multiples 14x 12x $120 1.50x 11.3x 10.5x 1.25x 9.9x 10x 9.2x 8.8x 8.3x 8x 1.00x 8.0x 0.75x 6x 0.50x 4x 0.25x 2x 0x 0.00x 2007 2008 2009 2010 2011 EV / LTM EBITDA 2012 2013 $101.8 $100 250 $80 200 100 $25.5 $24.0 $8.2 $20 $0 0 2007 2008 2009 9/8/2014 Annie's, Inc. General Mills, Inc. 40 9/2/2014 Harry & David Holdings, Inc. 1-800-Flowers.com Inc. 35 9/2/2014 ADM Global Chocolate Business Cargill, Incorporated 9/2/2014 Manzen, LLC Big Red, Inc. 8/29/2014 SC Zaharul Liesti SA 8/26/2014 CCA Industries, Inc., Mega-T Brand Casla Partners AGRANA Zucker GmbH 8/26/2014 Tim Hortons Inc. Burger King Worldwide, Inc. 8/26/2014 The Cook & Baker, LLC Portable Pantry LLC 8/25/2014 Rusty Taco, Inc. Buffalo Wild Wings Inc. 2011 2012 2013 2014 # of deals Private Equity Investments and Exits 45 Braintrust Investments, LLC 2010 Ag gregate Deal Valu e 0 JAB Holdings B.V.Buyer Inko's LLC 50 $9.3 EV / LTM Sa les 9/2/2014 150 $40 50 Target $55.7 $67.2 $60 Last 10 Deals Announced Announced 1/0/1900 300 $110.2 2014 Number of Investments Latest Deals and Announced Private Equity Activity5 1.75x Aggregate Transaction Value ($ inbillions) 13.5x Number of Transactions EV / LTM EBITDA Multiple 16x Announced Food and Bev. Transactions EV / LTM Sales Multiple North American Food and Beverage M&A Trends5 • The stock up was 20% after announcement, despite some equity research analysts preferring a complete acquisition. 46 43 36 32 27 27 30 20 34 27 26 25 36 38 34 26 25 24 21 18 17 15 14 15 10 5 0 2005 2006 2007 2008 2009 Nu mb er o f Inv estments 2010 2011 2012 2013 Number of Exits 6 of 16 2014 Debt Market Overview Quarterly Loan Volume Average Spread on Food and Beverage Loans $16 Loan Volume by Quarter ($ in billions) L + 600 $14 Average Spread Over LIBOR Food and Beverage Loan Activity7 $12 $10 $8 $6 $4 $2 L + 500 L + 400 L + 300 L + 200 L + 100 L+0 $0 2Q08 2Q09 2Q10 2Q11 2Q12 Institutional 2Q13 2007 2Q14 Credit Statistics 2011 2012 4.0x 2.0x 0.0x Debt/ EBITDA Recent Debt Offerings8 Effective Date 2010 2011 2012 2013 Weighted-Average Institutional L + 1000 2013 Average Spread Over LIBOR EBITDA Multiple 2010 2009 Average Secondary Spreads 6.0x 2009 2008 Revolving Credit / Term Loan A Pro Rata Senior Debt/ EBITDA EBITDA/ EBITDA - Capex/ Cash Interest Cash Interest Borrower Name Description L + 800 L + 600 L + 400 L + 200 L+0 Tranche Amount Type Rating Spread 09/01/14 Imperial Tobacco Group Plc Cigarettes USD 4,100,000,000 Term Loan N/A / Baa3 N/A 09/01/14 Imperial Tobacco Group Plc Cigarettes EUR 1,000,000,000 Revolver/Line >= 1 Yr. N/A / Baa3 N/A 09/01/14 Imperial Tobacco Group Plc Cigarettes USD 1,500,000,000 Term Loan N/A / Baa3 N/A 09/01/14 Imperial Tobacco Group Plc Cigarettes EUR 2,835,000,000 Revolver/Line >= 1 Yr. N/A / Baa3 N/A 09/01/14 Imperial Tobacco Group Plc Cigarettes GBP 500,000,000 Revolver/Line >= 1 Yr. N/A / Baa3 N/A 09/01/14 Imperial Tobacco Group Plc Cigarettes USD 1,500,000,000 Term Loan N/A / Baa3 N/A 08/29/14 Usina Santa Fé SA Raw cane sugar USD 52,500,000 Term Loan N/A / NR N/A 08/29/14 Vedan Enterprise Corp Food preparations TWD 3,500,000,000 Term Loan N/A / NR 90 08/29/14 WhiteWave Foods Fluid milk USD 1,000,000,000 Revolver/Line >= 1 Yr. N/A / NR 175 08/29/14 WhiteWave Foods Fluid milk USD 250,000,000 Term Loan A N/A / NR 175 08/29/14 WhiteWave Foods Fluid milk USD 750,000,000 Term Loan A N/A / NR 175 08/28/14 Fuller Smith & Turner Plc Malt beverages GBP 180,000,000 Undisclosed N/A / NR N/A 08/25/14 Formosa Oilseed Processing Co. Edible fats and oils TWD 400,000,000 Term Loan N/A / NR 71 08/25/14 Formosa Oilseed Processing Co. Edible fats and oils TWD 400,000,000 Revolver/Line >= 1 Yr. N/A / NR 76 08/25/14 Formosa Oilseed Processing Co. Edible fats and oils TWD 200,000,000 Revolver/Line >= 1 Yr. N/A / NR N/A 08/22/14 AAA Oils & Fats Pte Ltd Edible fats and oils USD 585,000,000 Revolver/Line >= 1 Yr. N/A / NR 280 7 of 16 Recent North American Food and Beverage M&A Activity Median LTM Trading Multiples Quarterly M&A Activity 100 13.2x 12.6x 12.6x 12.6x 12.4x 12.3x 12.2x 12.0x 11.9x 12.0x 11.8x 11.8x 12.0x 80 12.4x 10 12.1x 11.9x 11.8x12.0x 11.9x 11.6x 11.4x 11.2x 11.2x 10.9x 11.0x 6 90 12.7x12.8x 10.5x 10.0x Number of Transactions 13.0x Median Trading Multiple Median LTM Trading Multiples and Quarterly Food and Beverage M&A5 70 60 50 6 5 5 2 30 20 4 7 89 8 6 10 7 6 7 13 8 9 5 40 70 13 5 47 3 36 35 25 10 53 52 49 46 47 34 36 33 42 48 39 34 46 47 52 39 33 25 22 Announced Jul-14 Aug-14 Jun-14 May-14 Apr-14 Mar-14 Feb-14 Jan-14 Dec-13 Nov-13 Oct-13 Sep-13 Aug-13 Food Products, Processing, and Ingredient s Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 0 9.0x Recent North American Food and Beverage M&A5 4 7 7 7 Stra tegi c Acquirer Priv ate Eq uity Acq uirer Retail and Restaurants Target Seller Buyer Enterprise Value ($mm) Enterprise Value Sales EBITDA EBIT Private Equity Involvement 9/8/2014 Annie's, Inc. - General Mills, Inc. $821.4 3.95x 38.6x 41.9x 9/2/2014 Harry & David Holdings, Inc. Wasserstein & Co., LP 1-800-Flowers.com Inc. $101.8 0.27x 5.0x 8.4x 9/2/2014 ADM Global Chocolate Business Archer-Daniels-Midland Company Cargill, Incorporated $440.0 - - - 9/2/2014 Inko's LLC - Braintrust Investments, LLC - - - - 9/2/2014 Manzen, LLC Manchester Consolidated Corp. Big Red, Inc. - - - - 8/29/2014 SC Zaharul Liesti SA Lemarco SA AGRANA Zucker GmbH - - - - 8/26/2014 CCA Industries, Inc., Mega-T Brand CCA Industries Inc. Casla Partners $2.3 - - - 8/26/2014 Tim Hortons Inc. - Burger King Worldwide, Inc. $13,351.0 4.35x 17.4x 21.5x 8/26/2014 The Cook & Baker, LLC - Portable Pantry LLC - - - - 8/25/2014 Rusty Taco, Inc. - Buffalo Wild Wings Inc. - - - - 8/21/2014 HDOS Enterprises - Global Franchise Group, LLC - - - - 8/20/2014 Nice N Easy Grocery Shoppes, Inc. - CST Brands, Inc. - - - - 8/20/2014 McCain Foods, N. American Frozen Pizza Business McCain Foods Limited Dr. Oetker GmbH - - - - 8/19/2014 Lodi Olive Oil Company, LLC - Coldani Olive Ranch LLC - - - - 8/18/2014 Drake Enterprises Incorporated, Certain Assets Drake Enterprises Incorporated Papa Murphy's Company Stores, Inc. $3.4 - - - 8/18/2014 Cookie Commissary LLC - The Riverside Company - - - - P 8/18/2014 The Marshall Retail Group, LLC ICV Partners Brentwood Associates, Inc. - - - - P 8/14/2014 Coca-Cola Company, Worldwide Energy Business The Coca-Cola Company Monster Beverage Corporation $12,900.0 5.50x 18.8x - 8/13/2014 Casa Noble Tequila Casa Noble Holdings LLC Constellation Brands Inc. - - - - 8/11/2014 Chiquita Brands International Inc. BlackRock, Inc. Sucocitrico Cutrale Ltda $1,193.1 0.39x 13.6x 51.6x 8/11/2014 Continental Seasoning, Inc. - Newly Weds Foods, Inc. - - - - 8/8/2014 John Conti Coffee Co. Inc. - Canteen Service Co. of Kentuckiana, Inc. 8/7/2014 American Blanching Co., Inc. Ironwood Capital Nuts Distributor of America Inc. 8/1/2014 Mighty Leaf Tea Company VMG Partners 8/1/2014 Faribault Foods, Inc. 7/28/2014 7/24/2014 P P P - - - - $128.0 - - - P Peet's Coffee & Tea - - - - P - Arizona Canning Company, LLC - - - - M&M Meat Shops Ltd. - Searchlight Capital Partners - - - - Market Basket - Arthur DeMoulas - - - - 7/22/2014 Davisco Foods Intl. Davisco Foods Intl. Agropur Cooperative - - - - 7/21/2014 Helen Grace Chocolates, Inc. - BBX Sweet Holdings - - - - 7/17/2014 Hain Pure Protein Corporation Pegasus Capital Advisors The Hain Celestial Group, Inc. - - - - 7/15/2014 Gamila Products, LLC - Seventh Generation, Inc. - - - - 7/14/2014 Russell Stover Candies, Inc. - Chocoladefabriken Lindt & Spruengli - - - - 7/14/2014 Bistro AIX, LLC - Ovinte Partners - - - - 7/11/2014 Crumbs Bake Shop, Inc. Crumbs Bake Shop, Inc. Fischer Enterprises, Marcus Lemonis - - - - 7/11/2014 Slim-Fast Brand Unilever Kainos Capital - - - - 7/10/2014 Avión Spirits LLC Avión Tequila LLC Pernod Ricard USA, LLC - - - - 7/8/2014 Café Dépôt, Sushiman Inc., Muffin Plus, Fabrika - MTY Tiki Ming Enterprises, Inc. $13.9 - - - 7/8/2014 Maurice Cooper et Cie., LLC Maurice Cooper et Cie., LLC Heaven Hill Distilleries, Inc. - - - - 7/7/2014 Wild Flavors GmbH Kholberg Kravis Roberts & Co. Archer Daniels Midland $2,276.4 2.30x - - P 7/7/2014 Truco Enterprises, LP Arbor Private Investment Company Insignia Capital Group, LLC - - - - P 8 of 16 P P P Recent North American Food and Beverage M&A Activity Recent North American Food and Beverage M&A5 (continued) Buyer Seller Target Announced Enterprise Value ($mm) Private Equity Involvement Enterprise Value Sales EBITDA EBIT 7/3/2014 Apple & Eve, LLC ClearLight Partners LLC; Ares Capital Lassonde Industries Inc. $147.9 - 9.7x - 7/3/2014 Romeo's NY Pizza - Cardiff International Inc. $1.0 - - - 7/3/2014 Ker, Inc. - Third Lake Capital - - - - 7/3/2014 Allan Candy Company Ltd, Ju Ju Candies The Allan Candy Company Limited Weaver Nut Company, Inc. - - - - 7/3/2014 SoCal Eats LLC - - $1.8 - - - 7/2/2014 Juicy Juice Business Nestle USA, Inc. Brynwood Partners - - - - 6/30/2014 Sequoia Spring Water, Inc. - DS Services of America, Inc. - - - - 6/30/2014 Havana Manor LLC - Smoker Friendly International LLC 6/27/2014 Flagstone Foods Gryphon Investors; Prospect Capital Bay Valley Foods, LLC 6/25/2014 McAlister's Deli Located in Renaissance Center CAERUS Group 6/25/2014 Uncorked LLC - 6/25/2014 Sierra Soups, Inc. and Meadow Lakes Dressings Inc. - 6/23/2014 Great Sandhills Terminal Ltd. - Canadian Wheat Board 6/23/2014 Mr. B's Pub, Inc. - 6/23/2014 Furr's Restaurant Group, Inc. and Dynamic Foods Buffet Partners, L.P. 6/20/2014 Anodyne Coffeehouse 6/20/2014 - - - - $1,322.9 1.83x 24.3x 33.7x Southern Deli Holdings LLC - - - - - - - - - Sierra Foods Co. Inc. - - - - $23.9 0.46x - - - - - Food Management Partners, Inc. - - - - - Bull Run Coffee Bar - - - - S.B. Restaurant Co. Inc. Ares Capital; KarpReilly LLC; Fidus Cerberus Business Finance, LLC - - - - 6/19/2014 Great Harvest Franchising, Inc. - - - - - - 6/17/2014 Première Moisson Inc. - Metro Inc. 6/16/2014 Central Garden & Pet Company, Pet Segment Central Garden & Pet Company Harbinger Group Inc. 6/16/2014 ProBlend Ingredients, Inc. - 6/16/2014 BB's Bagels & Bread LLC 6/16/2014 P P P P 40.3x 138.1x - - - - $750.0 0.85x - - Eurogerm USA, Inc. - - - - - Zi Pani - - - - Spot Coffee Orchard Park, LLC SPoT Coffee Buffalo Inc. - - - - - 6/16/2014 Corr Brands, Inc. - ID Global Corporation - - - - 6/13/2014 Diversified Food And Seasoning, Inc. Diversified Food And Seasoning, Inc. Popeyes Louisiana Kitchen, Inc. $43.0 - - - 6/13/2014 Michael Angelo's - - - - - - 6/11/2014 Carlisle Corporation, 56 Wendy's Restaurants Carlisle Corporation NPC Quality Burgers, Inc. $58.2 0.76x - - 6/11/2014 The H.Wood Group - Hakkasan Ltd. - - - - 6/10/2014 Supreme Cattle Feeders L.L.C. Agri Beef Co. Green Plains Inc. - - - - 6/9/2014 Edgewood Bakery, Inc. - - $1.0 - - - 6/9/2014 Central Garden & Pet Company Spectrum Asset Management, Inc. Harbinger Group Inc. $1,020.0 0.62x 11.2x 19.8x 6/6/2014 Fruitbud Juice LLC - Country Pure Foods, Inc. - - - - 6/5/2014 Ovale SEC - Nutri-Oeuf Inc. - - - - 6/5/2014 Carneros Interests Michael Mondavi Family Estate Kieu Hoang Winery, LLC - - - - 6/4/2014 S.S. of Kansas, Inc. - Kelly Capital Investments, L.L.C. - - - - 6/3/2014 Pronto Restaurant Rutabagas Inc. - - - - - 6/3/2014 Premier Food Services, Inc. - SMG - - - - 6/2/2014 LM Foods, LLC - Salt Creek Capital II, LLC - - - - 6/1/2014 Yankie Creek Coffee House - - - - - - 5/31/2014 U-Swirl, Inc., Three Company Owned Cafes U-Swirl, Inc. - 5/29/2014 The Hillshire Brands Company Soros Fund Management LLC Tyson Foods, Inc. 5/29/2014 FoodCrafters Group Inc. - 5/28/2014 Pavilion 117 BMOC 5/28/2014 Saint Cupcake LLC - 5/27/2014 Flynn Restaurant Group LLC Teachers' Private Capital Goldman Sachs, Merchant Banking Division 5/27/2014 The Hillshire Brands Company Soros Fund Management LLC Pilgrim's Pride Corporation 5/27/2014 Track Enterprises, Inc. - 5/27/2014 Canopy Management Wine Company - 5/24/2014 Scottsboro Coca-Cola Bottling Company Coca-Cola Enterprises Inc. 5/23/2014 - - - - $8,543.1 2.14x 15.8x 22.8x A.C. Simmonds and Sons Inc. - - - - Baristas Coffee Company Inc. - - - - - - - - - - - - - $7,298.7 1.83x 13.5x 19.5x Ferris Coffee and Nut Company Inc. - - - - Vintage Wine Estates, Inc. - - - - Coca-Cola Bottling Company UNITED - - - - Contessa Premium Foods, Inc. $21.0 Inc.; Rosetta Capital Corporation Co. Partners, Red Chamber Main Street Capital Holdings, LLC; Sun Capital - - - 5/23/2014 Moark, LLC Land O Lakes Inc. Southern California Egg Cooperative, Inc. - - - - 5/23/2014 Prime Select Seafoods, Inc. - Northern Fish Products, Inc. 5/22/2014 SoCal Eats LLC - Paraiso Culinary Ventures LLC 5/22/2014 Conopco Inc., North America Pasta Sauces Business Conopco, Inc. 5/21/2014 Wintercreek LLC - 5/20/2014 Vegetable Juices Inc 5/20/2014 P P P P P - - - - $2.6 - - - $2,150.0 3.58x - - DS Services of America, Inc. - - - - - Naturex Société Anonyme - - - - TGI Friday's Inc. Carlson Companies, Inc. Sentinel Capital Partners; Tri-Artisan - - - - P 5/20/2014 Next Generation Vending, LLC H.I.G. Capital, LLC Aramark - - - - P 5/16/2014 507 Restaurant Properties of Red Lobster Golden Gate Capital American Realty Capital Properties, Inc. $1,500.0 - - - P 5/15/2014 Red Lobster Seafood Co. Darden Restaurants, Inc. Golden Gate Capital $2,113.0 0.85x 9.2x - 5/14/2014 Jeff's Gourmet Pies, Inc. - David's Cookies, Inc. - - - - Mizkan Holdings Co., Ltd. 9 of 16 Trading Statistics Detail5 Member FINRA/SIPC ($ in millions, except per share data) Food and Beverage Branded Processed Foods Associated British Foods plc Campbell Soup Company ConAgra Foods, Inc. General Mills, Inc. Hormel Foods Corporation Kellogg Company McCormick & Company, Incorporated Mondelez International, Inc. Nestlé S.A. The Hain Celestial Group, Inc. The Hershey Company The J. M. Smucker Company The WhiteWave Foods Company Private Label Foods Flowers Foods, Inc. Snyder's-Lance, Inc. Treehouse Foods, Inc. Natural / Organic Foods Amira Nature Foods Ltd. Annie's, Inc. SunOpta Inc. The Hain Celestial Group, Inc. United Natural Foods, Inc. Whole Foods Market, Inc. Baked Goods / Snack Foods ARYZTA AG Diamond Foods, Inc. Flowers Foods, Inc. George Weston Limited Golden Enterprises Inc. Grupo Bimbo, S.A.B. de C.V. Inventure Foods, Inc. J&J Snack Foods Corp. John B Sanfilippo & Son Inc. Lancaster Colony Corporation Penford Corporation Ticker ABF CPB CAG GIS HRL K MKC MDLZ NESN HAIN HSY SJM WWAV FLO LNCE THS ANFI BNNY TSX:SOY HAIN UNFI WFM SWX:ARYN DMND FLO WN GLDC BIMBO A SNAK JJSF JBSS LANC PENX Price at As a % of Market 9/8/14 52-wk High Cap $44.51 43.39 32.67 53.51 50.85 64.44 69.13 35.32 76.89 97.79 91.94 101.97 35.72 $19.16 27.86 81.56 $18.95 33.51 12.79 97.79 64.40 38.81 $87.99 27.43 19.16 79.13 4.55 3.13 11.16 96.14 31.82 87.49 14.12 85.1% 93.0% 95.3% 96.2% 100.0% 92.7% 94.3% 89.3% 97.6% 98.9% 84.6% 90.3% 100.0% 74.6% 91.3% 98.0% 75.8% 64.0% 91.7% 98.9% 80.9% 59.2% 90.8% 77.1% 74.6% 97.6% 92.9% 92.7% 77.0% 96.1% 100.0% 87.7% 93.0% $35,152 13,621 13,868 32,775 13,397 23,206 8,978 59,546 245,312 4,924 20,395 10,382 6,221 $4,015 1,957 3,431 $681 573 856 4,924 3,198 14,020 $7,754 861 4,015 10,136 53 14,724 218 1,793 352 2,392 179 Debt $1,907 3,912 8,994 8,786 250 7,527 1,325 18,576 26,355 868 1,993 2,351 1,365 826 705 1,021 $185 0 174 868 302 62 $2,153 654 826 13,207 8 4,693 79 1 82 0 85 Cash & Enterprise Equiv. Value (EV) $521 239 192 867 531 290 91 2,290 4,244 124 660 149 66 9 18 26 $38 2 7 124 17 796 $795 7 9 2,162 1 467 1 68 2 212 0 $36,538 17,294 22,669 40,694 13,116 30,443 10,212 75,832 267,422 5,668 21,728 12,584 7,519 $4,832 2,643 4,425 $828 571 1,024 5,668 3,483 13,286 $9,112 1,508 4,832 21,181 60 18,949 296 1,725 432 2,180 264 Last Twelve Months (LTM) Revenue $22,096 8,139 17,703 17,910 9,096 14,644 4,213 35,037 101,648 2,154 7,260 5,584 2,986 $3,759 1,797 2,474 $576 208 1,260 2,154 6,672 13,914 $6,126 846 3,759 33,595 136 13,799 253 904 779 1,041 452 EBITDA Revenue Growth 1 Year 3 Years LTM Margins Gross EBITDA P/E Multiple EV / LTM Revenue EV / 2014E EBITDA Revenue EBITDA $2,679 1,407 2,403 3,481 1,031 3,805 718 5,651 18,950 289 1,579 1,184 332 14.8% 9.8% 14.8% 0.8% 5.8% (1.4%) 3.8% (0.3%) 4.3% 24.2% 6.2% (5.0%) 24.0% 8.7% 2.2% 12.6% 6.4% 5.0% 4.3% 7.0% (12.4%) 2.6% 24.8% 7.0% 4.0% 24.8% 24.4% 35.7% 21.0% 35.6% 16.8% 43.7% 40.7% 36.9% 47.8% 26.5% 45.5% 36.3% 34.3% 12.1% 17.3% 13.6% 19.4% 11.3% 26.0% 17.0% 16.1% 18.6% 13.4% 21.8% 21.2% 11.1% 36.6x 19.6x 45.5x 18.7x 23.0x 12.8x 23.1x 32.1x 23.8x 34.6x 24.8x 19.1x NM 1.65x 2.12x 1.28x 2.27x 1.44x 2.08x 2.42x 2.16x 2.63x 2.63x 2.99x 2.25x 2.52x 13.6x 12.3x 9.4x 11.7x 12.7x 8.0x 14.2x 13.4x 14.1x 19.6x 13.8x 10.6x 22.6x 1.62x 2.05x 1.39x 2.19x 1.36x 2.03x 2.36x 2.13x 2.57x 2.05x 2.82x 2.16x 2.13x 13.4x 10.4x 10.3x 11.2x 11.2x 11.0x 13.5x 12.7x 13.4x 15.2x 12.4x 9.9x 16.7x Mean Median 7.8% 5.8% 7.5% 6.4% 34.2% 35.7% 16.9% 17.0% 26.1x 23.4x 2.19x 2.25x 13.6x 13.4x 2.07x 2.13x 12.4x 12.4x $419 187 317 7.5% 14.9% 12.6% 12.9% 10.7% 8.1% 47.6% 33.9% 21.5% 11.2% 10.4% 12.8% 23.9x 26.3x 37.6x 1.29x 1.47x 1.79x 11.5x 14.1x 14.0x 1.22x 1.61x 1.27x 10.1x 13.7x 9.9x Mean Median 11.7% 12.6% 10.5% 10.7% 34.3% 33.9% 11.5% 11.2% 29.3x 26.3x 1.52x 1.47x 13.2x 14.0x 1.37x 1.27x 11.2x 10.1x $82 21 67 289 262 1,301 29.8% 19.2% 10.2% 24.2% 15.7% 8.3% 88.8% 20.8% 9.2% 24.8% 15.2% 12.2% 24.2% 34.6% 11.2% 26.5% 16.8% 35.6% 14.3% 10.2% 5.3% 13.4% 3.9% 9.4% 14.7x 45.4x NM 34.6x 26.2x 25.2x 1.44x 2.75x 0.81x 2.63x 0.52x 0.95x 10.0x 26.8x 15.3x 19.6x 13.3x 10.2x 1.24x 2.28x 0.76x 2.05x 0.47x 0.86x 9.0x 16.8x 10.8x 15.2x 11.8x 9.5x Mean Median 17.9% 17.5% 28.5% 18.0% 24.8% 25.4% 9.4% 9.8% 29.2x 26.2x 1.52x 1.20x 15.9x 14.3x 1.28x 1.05x 12.2x 11.3x 3.3% (4.8%) 7.5% 3.0% (1.1%) 3.5% 31.4% 3.7% 6.0% 2.7% (1.7%) 8.4% (2.4%) 12.9% 0.5% 1.2% 10.6% 19.5% 7.6% 4.9% (1.5%) 15.3% 27.2% 25.1% 47.6% 23.6% 48.7% 53.0% 18.2% 31.1% 15.8% 23.9% 10.0% 12.8% 9.9% 11.2% 5.2% 4.9% 10.8% 9.0% 15.7% 7.6% 16.7% 4.6% NM NM 23.9x NM NM 39.5x 30.0x 25.5x 13.3x 23.8x 44.5x 1.49x 1.78x 1.29x 0.63x 0.44x 1.37x 1.17x 1.91x 0.55x 2.09x 0.58x 11.7x 18.0x 11.5x 12.1x 9.1x 12.7x 13.0x 12.2x 7.3x 12.5x 12.6x 1.36x 1.69x 1.22x 0.51x NA 1.24x 0.98x 1.82x NA 2.04x 0.55x 10.1x 13.2x 10.1x 5.8x NA 11.6x 10.1x 11.3x NA 12.2x 8.1x 4.9% 3.3% 7.0% 7.6% 29.5% 25.1% 9.9% 9.9% 28.6x 25.5x 1.21x 1.29x 12.1x 12.2x 1.27x 1.24x 10.3x 10.1x $782 84 419 1,757 7 1,491 23 142 59 174 21 Mean Median 10 of 16 Trading Statistics Detail (continued)5 Member FINRA/SIPC ($ in millions, except per share data) Dairy Danone Dean Foods Company Glanbia plc Lifeway Foods Inc. Saputo Inc. Non-Alcoholic Beverages A.G.Barr p.l.c. Cott Corporation Dr Pepper Snapple Group, Inc. Keurig Green Mountain, Inc. Lassonde Industries Inc. Monster Beverage Corporation National Beverage Corp. Pepsico, Inc. Starbucks Corporation The Coca-Cola Company Alcoholic Beverages Anheuser-Busch InBev SA/NV Brown-Forman Corporation Constellation Brands Inc. Diageo plc Heineken NV Kirin Holdings Company, Limited Pernod-Ricard SA SABMiller plc Sapporo Holdings Ltd. Inputs Protein Processing Cal-Maine Foods, Inc. JBS S.A. Sanderson Farms, Inc. Seaboard Corp. Tyson Foods, Inc. Ticker BN DF GL9 LWAY TSX:SAP LSE:BAG BCB DPS GMCR LAS.A MNST FIZZ PEP SBUX KO ENXTBR:ABI BF.B STZ DGE ENXTAM:HEIA TSE:2503 RI LSE:SAB TSE:2501 CALM BOVESPA:JBSS3 SAFM SEB TSN Price at As a % of Market 9/8/14 52-wk High Cap Debt $42,504 1,474 4,398 230 11,840 $16,239 986 762 9 1,931 $70.88 15.72 14.89 14.09 60.46 $10.22 7.54 62.31 129.34 115.09 89.91 18.44 91.86 77.67 41.78 $111.77 90.67 86.41 29.38 76.62 13.26 117.04 55.31 4.15 $81.04 4.10 91.26 2,860.50 38.32 92.7% 79.1% 94.2% 81.9% 95.1% 91.7% 86.9% 100.0% 94.5% 96.4% 94.7% 82.8% 98.2% 94.1% 98.1% 99.0% 93.3% 91.2% 85.0% 100.0% 86.5% 93.5% 96.4% 91.2% 98.9% 94.3% 87.8% 91.7% 86.6% $1,180 706 12,158 21,008 804 15,032 854 138,414 58,346 183,244 $179,601 19,246 16,641 73,796 44,054 12,115 30,810 88,783 1,617 $1,960 11,874 2,105 3,350 14,392 $25 656 2,622 278 253 0 30 32,848 2,048 40,247 $55,511 1,011 7,209 16,258 15,585 7,630 12,773 17,077 2,513 $61 15,879 20 131 1,825 Cash & Enterprise Equiv. Value (EV) $4,208 60 121 6 45 $21 91 150 1,204 16 827 30 11,299 1,196 21,612 $8,845 460 382 1,064 1,147 421 899 2,131 105 $209 4,670 139 447 589 $54,535 2,401 5,040 234 13,726 $1,184 1,271 14,630 20,082 1,041 14,205 855 159,963 59,198 201,879 $226,267 19,797 23,467 88,990 58,492 19,324 42,683 103,729 4,025 $1,812 23,083 1,986 3,033 15,628 Last Twelve Months (LTM) Revenue $28,348 9,231 3,317 109 9,076 $419 2,051 6,035 4,559 991 2,355 641 66,544 16,081 46,220 $46,245 3,010 5,720 17,546 24,785 21,109 10,877 16,704 4,942 $1,441 48,452 2,741 6,578 36,369 EBITDA Revenue Growth 1 Year 3 Years LTM Margins Gross EBITDA P/E Multiple EV / LTM Revenue EV / 2014E EBITDA Revenue EBITDA $4,304 247 288 7 982 1.7% 0.2% 8.6% 22.4% 23.1% 2.0% (9.7%) 0.3% 18.8% 12.1% 47.2% 18.4% 29.0% 25.7% 10.8% 15.2% 2.7% 8.7% 6.3% 10.8% 29.9x 4.2x 22.8x NM 24.2x 1.92x 0.26x 1.52x 2.15x 1.51x 12.7x 9.7x 17.5x 33.9x 14.0x 1.88x 0.26x 1.47x 1.84x 1.45x 11.5x 9.3x 15.5x 17.0x 12.8x Mean Median 11.2% 8.6% 4.7% 2.0% 26.2% 25.7% 8.7% 8.7% 20.3x 23.5x 1.47x 1.52x 17.5x 14.0x 1.38x 1.47x 13.2x 12.8x $75 183 1,447 1,144 111 687 76 12,657 3,340 13,092 11.7% (5.5%) 0.5% 7.1% 1.2% 10.6% (3.2%) 0.8% 11.3% (2.9%) 6.0% (2.2%) 1.4% 25.4% 19.6% 15.7% 2.2% 2.1% 11.8% 3.1% 45.7% 11.9% 59.4% 38.2% 27.5% 53.1% 33.9% 53.4% 57.9% 61.0% 17.8% 8.9% 24.0% 25.1% 11.2% 29.2% 11.9% 19.0% 20.8% 28.3% 26.4x NM 16.8x 36.8x 19.0x 37.3x 20.4x 20.9x NM 22.3x 2.82x 0.62x 2.42x 4.40x 1.05x 6.03x 1.33x 2.40x 3.68x 4.37x 15.8x 6.9x 10.1x 17.6x 9.4x 20.7x 11.2x 12.6x 17.7x 15.4x 2.66x 0.60x 2.40x 3.98x NA 5.39x 1.32x 2.34x 3.32x 4.24x 14.3x 6.6x 10.3x 16.6x NA 18.0x NA 12.0x 14.1x 14.9x Mean Median 3.2% 1.0% 8.5% 4.5% 44.2% 49.4% 19.6% 19.9% 25.0x 21.6x 2.91x 2.62x 13.8x 14.0x 2.92x 2.66x 13.4x 14.2x $17,790 1,028 1,630 5,824 5,192 2,665 3,068 5,445 422 14.7% 4.9% 101.8% 2.1% 0.6% 8.8% (2.4%) (3.9%) (2.0%) 7.0% 4.3% 21.6% 4.3% 4.1% 6.6% 0.5% 3.3% 8.4% 60.2% 69.6% 42.4% 60.9% 38.6% 43.0% 62.7% 69.6% 35.3% 38.5% 34.2% 28.5% 33.2% 20.9% 12.6% 28.2% 32.6% 8.5% 21.3x 29.8x 8.0x 19.0x 24.4x 32.3x 20.0x 26.5x NM 4.89x 6.58x 4.10x 5.07x 2.36x 0.92x 3.92x 6.21x 0.81x 12.7x 19.3x 14.4x 15.3x 11.3x 7.3x 13.9x 19.1x 9.5x 4.54x 4.61x 3.85x 4.89x 2.24x 0.89x 3.93x 5.91x 0.79x 11.2x 17.4x 13.0x 14.6x 9.7x 6.8x 13.7x 15.7x 9.6x Mean Median 13.8% 2.1% 6.7% 4.3% 53.6% 60.2% 26.4% 28.5% 22.7x 22.9x 3.87x 4.10x 13.6x 13.9x 3.52x 3.93x 12.4x 13.0x $188 3,478 374 380 2,097 11.9% 29.9% 5.3% 1.6% 7.6% 15.2% 9.5% 12.1% 8.3% 5.1% 21.0% 13.6% 16.1% 8.4% 7.4% 13.0% 7.2% 13.6% 5.8% 5.8% 17.4x 41.2x 10.2x 13.7x 13.5x 1.26x 0.48x 0.72x 0.46x 0.43x 9.7x 6.6x 5.3x 8.0x 7.5x 1.21x 0.45x 0.72x 0.45x 0.39x 8.3x 6.5x 4.4x NA 5.2x Mean Median 11.2% 7.6% 10.0% 9.5% 13.3% 13.6% 9.1% 7.2% 19.2x 13.7x 0.67x 0.48x 7.4x 7.5x 0.64x 0.45x 6.1x 5.8x 11 of 16 Trading Statistics Detail (continued)5 Member FINRA/SIPC ($ in millions, except per share data) Fruit and Vegetable Calavo Growers Inc. Chiquita Brands International Inc. Fresh Del Monte Produce Inc. Seneca Foods Corp. Ticker CVGW CQB FDP SENE.A Ingredients / Flavors Givaudan SA SWX:GIVN International Flavors & Fragrances Inc. IFF Kerry Group plc ISE:KRZ Sensient Technologies Corporation SXT Symrise AG XTRA:SY1 Tate & Lyle plc TATE Agribusiness Archer Daniels Midland Company Bunge Limited CF Industries Holdings, Inc. Darling Ingredients Inc. Monsanto Company Omega Protein Corporation The Andersons, Inc. The Mosaic Company Consumer and Retail Food Retail Costco Wholesale Corporation Establishments Delhaize Freres Fairway Group Holdings Corp. Ingles Markets, Incorporated J. Sainsbury plc Koninklijke Ahold N.V. Natural Grocers by Vitamin Cottage Roundy's, Inc. Safeway Inc. Sprouts Farmers Market, Inc. SUPERVALU Inc. The Kroger Co. The Pantry, Inc. Village Super Market Inc. Weis Markets, Inc. Whole Foods Market, Inc. ADM BG CF DAR MON OME ANDE MOS COST DELB FWM IMKT.A LSE:SBRY ENXTAM:AH NGVC RNDY SWY SFM SVU KR PTRY VLGE.A WMK WFM Price at As a % of Market 9/8/14 52-wk High Cap $38.65 13.60 33.03 30.11 $1,653.65 101.34 73.03 55.32 52.30 11.02 $50.53 85.62 253.08 19.44 114.67 15.20 69.38 47.14 126.60 69.35 4.36 25.99 4.71 16.63 18.83 3.61 34.65 31.48 9.68 52.17 21.25 23.70 43.38 38.81 97.9% 95.1% 100.0% 86.7% 97.7% 95.7% 95.4% 96.5% 94.3% 80.5% 100.0% 100.0% 94.5% 81.2% 89.0% 99.5% 100.0% 92.0% 100.0% 95.7% 16.7% 89.3% 66.3% 81.3% 42.2% 32.9% 86.1% 63.7% 99.0% 100.0% 98.2% 59.7% 80.1% 59.2% $609 639 1,833 326 $15,223 8,225 12,838 2,667 6,789 5,150 $32,618 12,492 12,571 3,201 60,155 321 1,943 17,661 55,488 7,047 189 592 9,001 14,039 423 174 7,983 4,736 2,524 25,507 498 333 1,167 14,020 Debt $52 637 182 228 $1,603 936 1,861 495 716 1,305 $5,622 8,731 4,592 2,371 3,211 22 417 3,026 4,985 3,532 257 909 4,735 4,116 20 711 3,814 433 2,762 11,316 937 43 0 62 Cash & Enterprise Equiv. Value (EV) $20 55 48 11 $401 329 317 28 673 772 $1,996 3,607 2,194 144 1,817 40 47 2,367 7,275 1,685 49 4 2,646 2,753 7 36 2,304 184 90 265 50 73 87 796 $641 1,221 1,967 543 $16,425 8,832 14,382 3,134 6,833 5,684 $36,244 17,616 14,969 5,428 61,549 303 2,313 18,320 53,198 8,894 397 1,497 11,090 15,401 436 849 9,494 4,985 5,196 36,558 1,385 303 1,080 13,286 Last Twelve Months (LTM) Revenue $749 3,059 3,855 1,348 $4,887 3,026 7,914 1,466 2,516 5,245 $87,726 61,325 5,029 2,793 15,427 289 5,081 7,665 109,604 28,955 787 3,820 39,799 43,571 500 4,081 36,333 2,708 17,148 101,339 6,825 1,498 2,727 13,914 EBITDA Revenue Growth 1 Year 3 Years LTM Margins Gross EBITDA P/E Multiple EV / LTM Revenue EV / 2014E EBITDA Revenue EBITDA $40 87 210 41 24.7% 0.7% 9.9% 5.5% 20.1% (1.5%) 2.1% 3.0% 9.2% 10.5% 8.2% 6.5% 5.3% 2.9% 5.5% 3.0% 25.3x NM NM 27.7x 0.86x 0.40x 0.51x 0.40x 16.1x 14.0x 9.4x 13.2x 0.78x 0.40x 0.50x NA 13.2x 8.1x 8.1x NA Mean Median 10.2% 7.7% 5.9% 2.6% 8.6% 8.7% 4.2% 4.2% 26.5x 26.5x 0.54x 0.46x 13.2x 13.6x 0.56x 0.50x 9.8x 8.1x $1,001 653 952 268 523 737 6.2% 5.3% 3.5% (0.3%) 7.6% 0.3% 0.6% 3.5% 1.7% 1.4% 3.0% 8.9% 45.9% 44.5% 43.2% 33.5% 43.0% 37.7% 20.5% 21.6% 12.0% 18.3% 20.8% 14.0% 27.3x 21.9x NM 32.2x 27.3x 13.1x 3.36x 2.92x 1.82x 2.14x 2.72x 1.08x 16.4x 13.5x 15.1x 11.7x 13.1x 7.7x 3.34x 2.80x 1.80x 2.12x 2.29x 1.21x 14.1x 12.3x 13.6x 10.9x 10.6x 8.1x Mean Median 3.8% 4.4% 3.2% 2.3% 41.3% 43.1% 17.9% 19.4% 24.4x 27.3x 2.34x 2.43x 12.9x 13.3x 2.26x 2.20x 11.6x 11.6x $3,371 1,731 2,244 416 4,611 92 137 1,357 (3.6%) (4.0%) (14.7%) 59.9% 4.5% 21.5% (10.2%) (23.7%) 0.8% 6.3% (0.7%) 28.8% 10.4% 13.1% 6.5% (8.3%) 4.8% 4.4% 40.0% 25.8% 53.6% 34.0% 7.5% 14.1% 3.8% 2.8% 44.6% 14.9% 29.9% 32.0% 2.7% 17.7% 19.8x NM 9.0x NM 23.7x 8.4x 16.5x NM 0.41x 0.29x 2.98x 1.94x 3.99x 1.05x 0.46x 2.39x 10.8x 10.2x 6.7x 13.0x 13.3x 3.3x 16.9x 13.5x 0.42x 0.28x 3.38x 1.36x 3.80x 1.07x 0.47x 1.85x 8.5x 7.7x 7.1x 8.8x 11.9x 4.8x 9.4x 7.3x Mean Median 3.7% (3.8%) 7.1% 6.4% 23.0% 20.0% 18.6% 16.3% 15.5x 16.5x 1.69x 1.50x 11.0x 11.9x 1.58x 1.22x 8.2x 8.1x 4,086 1,621 14 214 2,411 2,847 39 141 1,511 228 825 4,598 202 51 155 1,301 4.5% 5.8% 13.6% 0.8% 12.9% 0.9% 23.4% 10.6% 4.2% 23.9% 0.1% 3.9% (3.5%) 1.9% 0.7% 8.3% 8.9% (1.2%) NA 2.9% 5.2% 1.1% 30.1% 2.7% (4.8%) NA (22.7%) 6.1% (1.0%) 4.9% 1.1% 12.2% 12.6% 24.0% 31.9% 21.9% 5.8% 26.6% 29.2% 26.6% 27.1% 30.0% 14.9% 21.3% 11.9% 26.8% 27.1% 35.6% 3.7% 5.6% 1.8% 5.6% 6.1% 6.5% 7.9% 3.5% 4.2% 8.4% 4.8% 4.5% 3.0% 3.4% 5.7% 9.4% 27.1x NM NM 11.6x 8.2x 15.4x 33.9x NM NM NM 16.0x 17.1x NM 44.4x 21.1x 25.2x 0.49x 0.31x 0.50x 0.39x 0.28x 0.35x 0.87x 0.21x 0.26x 1.84x 0.30x 0.36x 0.20x 0.20x 0.40x 0.95x 13.0x 5.5x 28.3x 7.0x 4.6x 5.4x 11.1x 6.0x 6.3x 21.8x 6.3x 8.0x 6.9x 5.9x 7.0x 10.2x 0.45x 0.32x 0.48x 0.38x 0.27x 0.35x 0.73x 0.21x 0.26x 1.54x 0.29x 0.33x 0.18x 0.20x 0.39x 0.86x 11.8x 5.1x 8.2x 6.8x 4.7x 5.5x 9.7x 7.0x 7.2x 18.0x 6.8x 7.1x 6.2x NA NA 9.5x 7.0% 4.3% 3.2% 2.8% 23.3% 26.6% 5.2% 5.2% 22.0x 19.1x 0.50x 0.36x 9.6x 6.9x 0.45x 0.34x 8.1x 7.1x Mean Median 12 of 16 Trading Statistics Detail (continued)5 Member FINRA/SIPC ($ in millions, except per share data) Grocery Distribution AMCON Distributing Co. Core-Mark Holding Company, Inc. SpartanNash Company United Natural Foods, Inc. Foodservice Colabor Group Inc. Sysco Corporation The Chefs' Warehouse, Inc. Quick Service Restaurant Burger King Worldwide, Inc. Jack in the Box Inc. McDonald's Corp. Sonic Corp. The Wendy's Company Yum! Brands, Inc. Casual Dining Restaurant BJ's Restaurants, Inc. Bloomin' Brands, Inc. Brinker International, Inc. Buffalo Wild Wings Inc. Chuy's Holdings, Inc. Darden Restaurants, Inc. Del Frisco's Restaurant Group, Inc. DineEquity, Inc. Ignite Restaurant Group, Inc. Red Robin Gourmet Burgers Inc. Ruby Tuesday, Inc. Ruth's Hospitality Group Inc. Texas Roadhouse, Inc. The Cheesecake Factory Incorporated Ticker DIT CORE SPTN UNFI TSX:GCL SYY CHEF BKW JACK MCD SONC WEN YUM BJRI BLMN EAT BWLD CHUY DRI DFRG DIN IRG RRGB RT RUTH TXRH CAKE Price at As a % of Market 9/8/14 52-wk High Cap $84.97 51.70 21.60 64.40 $3.52 38.75 18.58 32.31 61.78 92.50 21.87 8.02 72.34 $36.78 16.96 50.44 147.63 27.60 48.03 22.60 82.77 7.00 53.73 6.25 11.36 26.81 45.25 91.4% 100.0% 83.9% 80.9% 69.7% 89.3% 62.0% 95.1% 98.2% 89.1% 92.1% 78.1% 86.6% 99.1% 62.2% 91.0% 88.1% 63.6% 87.5% 76.3% 96.5% 40.0% 61.9% 76.0% 74.2% 92.2% 91.0% $51 1,193 815 3,198 $95 22,737 466 11,372 2,411 90,828 1,183 2,943 31,804 $1,035 2,130 3,259 2,793 454 6,368 532 1,644 183 771 386 405 1,864 2,162 Debt $25 43 584 302 $173 2,760 146 3,024 535 15,431 467 1,454 3,165 $0 1,404 860 0 8 2,756 0 1,373 119 137 259 22 53 97 Cash & Enterprise Equiv. Value (EV) $0 16 6 17 $0 413 15 905 10 3,671 35 372 831 $30 156 58 101 4 100 12 100 1 61 51 3 77 26 $76 1,220 1,392 3,483 $268 25,084 597 13,491 2,936 102,588 1,615 4,026 34,138 $1,004 3,379 4,062 2,692 457 9,024 520 2,916 301 847 594 424 1,839 2,234 Last Twelve Months (LTM) Revenue $834 7,942 6,175 6,672 $1,313 46,517 764 1,042 1,477 28,299 547 2,280 13,573 $813 4,287 2,905 1,391 223 6,286 286 647 859 1,069 1,169 413 1,503 1,923 EBITDA Revenue Growth 1 Year 3 Years LTM Margins Gross EBITDA P/E Multiple EV / LTM Revenue EV / 2014E EBITDA Revenue EBITDA $11 100 174 262 2.2% 10.5% 78.3% 15.7% 7.8% 11.5% 33.6% 15.2% 9.2% 6.9% 15.5% 16.8% 1.4% 1.3% 2.8% 3.9% 13.7x 27.3x 47.6x 26.2x 0.09x 0.15x 0.23x 0.52x 6.7x 12.2x 8.0x 13.3x NA 0.11x NA 0.47x NA 9.9x NA 11.8x Mean Median 26.7% 13.1% 17.0% 13.4% 12.1% 12.3% 2.3% 2.1% 28.7x 26.7x 0.25x 0.19x 10.0x 10.1x 0.29x 0.29x 10.8x 10.8x (8.1%) 4.7% 32.5% 4.2% 5.8% 28.7% 2.2% 17.6% 25.1% 2.1% 4.9% 5.3% NM 23.9x 31.8x 0.20x 0.54x 0.78x 9.5x 11.0x 14.8x 0.20x 0.51x 0.67x 7.6x 10.3x 12.3x Mean Median 9.7% 4.7% 12.9% 5.8% 15.0% 17.6% 4.1% 4.9% 27.8x 27.8x 0.51x 0.54x 11.8x 11.0x 0.46x 0.51x 10.1x 10.3x 672 266 10,149 135 339 2,989 (28.9%) (1.6%) 1.8% 2.4% (9.5%) 3.1% (23.5%) (13.1%) 3.5% (0.1%) (1.5%) 5.2% 78.5% 25.8% 38.7% 53.3% 28.6% 27.0% 64.5% 18.0% 35.9% 24.7% 14.9% 22.0% 41.3x 25.2x 17.0x 29.0x 30.9x 27.7x 12.94x 1.99x 3.63x 2.95x 1.77x 2.52x 20.1x 11.0x 10.1x 11.9x 11.9x 11.4x 12.33x 1.96x 3.58x 2.85x 2.03x 2.31x 17.8x 10.6x 9.8x 10.7x 10.1x 10.1x Mean Median (5.4%) 0.1% (4.9%) (0.8%) 42.0% 33.7% 30.0% 23.4% 28.5x 28.4x 4.30x 2.73x 12.7x 11.6x 4.18x 2.58x 11.5x 10.3x $78 417 424 227 26 643 41 272 24 109 52 49 181 238 8.8% 5.5% 2.1% 19.9% 16.5% 6.2% 14.8% (7.1%) 46.1% 7.1% (6.6%) 1.9% 13.0% 3.8% 13.3% 6.0% 1.7% 26.9% 25.1% (5.7%) 20.6% (18.7%) 31.1% 6.3% (2.5%) 4.5% 12.6% 4.5% 16.8% 16.2% 19.3% 25.1% 18.8% 20.6% 24.7% 60.6% 29.8% 23.1% 15.6% 21.8% 33.1% 43.3% 9.6% 9.7% 14.6% 16.3% 11.4% 10.2% 14.5% 42.0% 2.8% 10.2% 4.5% 11.8% 12.0% 12.4% NM 13.9x 21.8x 31.0x 40.7x 34.5x 38.3x 21.2x NM 23.6x NM 16.9x 22.7x 21.3x 1.24x 0.79x 1.40x 1.94x 2.04x 1.44x 1.82x 4.51x 0.35x 0.79x 0.51x 1.03x 1.22x 1.16x 12.9x 8.1x 9.6x 11.8x 17.9x 14.0x 12.5x 10.7x 12.4x 7.8x 11.4x 8.7x 10.2x 9.4x 1.13x 0.74x 1.35x 1.67x 1.71x 1.35x 1.59x 4.54x 0.36x 0.68x 0.52x 0.96x 1.12x 1.09x 11.0x 7.2x 8.8x 10.3x 13.8x 11.9x 10.3x 10.8x 9.7x 6.6x 10.0x 7.5x 8.8x 8.5x 9.4% 6.6% 9.0% 6.1% 26.3% 22.4% 13.0% 11.6% 26.0x 22.7x 1.44x 1.23x 11.2x 11.1x 1.34x 1.13x 9.7x 9.9x $28 2,277 40 Mean Median 13 of 16 Trading Statistics Detail (continued)5 Member FINRA/SIPC ($ in millions, except per share data) Fast Casual Chipotle Mexican Grill, Inc. Einstein Noah Restaurant Group, Inc. Fiesta Restaurant Group, Inc. Noodles & Company Potbelly Corporation Panera Bread Company Pizza Domino's Pizza, Inc. Papa John's International Inc. Beverage / Snack Retail Dunkin' Brands Group, Inc. Jamba, Inc. Krispy Kreme Doughnuts, Inc. Starbucks Corporation Tim Hortons Inc. Ticker CMG BAGL FRGI NDLS PBPB PNRA DPZ PZZA DNKN JMBA KKD SBUX THI Price at As a % of Market 9/8/14 52-wk High Cap $678.37 14.03 48.68 17.70 12.42 155.74 76.06 40.24 $46.36 14.75 17.67 77.67 81.40 97.2% 76.6% 91.7% 35.6% 36.6% 80.6% 94.4% 73.2% 87.4% 98.7% 66.4% 94.1% 98.5% $21,040 252 1,281 527 366 4,215 4,192 1,647 $4,861 254 1,135 58,346 10,796 Debt $0 102 69 10 1 100 1,524 210 $1,816 0 2 2,048 1,360 Cash & Enterprise Equiv. Value (EV) $805 4 4 1 71 185 15 20 $176 32 44 1,196 24 $20,235 350 1,346 536 297 4,130 5,701 1,837 $6,500 222 1,093 59,198 12,132 Last Twelve Months (LTM) Revenue $3,625 442 576 369 310 2,471 1,875 1,516 $732 222 461 16,081 3,152 EBITDA BOBE DENN FRS LUB $44.52 7.01 26.25 5.21 73.9% 93.3% 94.6% 56.9% $1,050 595 134 148 $463 180 9 36 $4 1 2 2 $1,509 774 141 182 $1,325 458 209 401 3 Years LTM Margins Gross EBITDA P/E Multiple EV / LTM Revenue EV / 2014E EBITDA Revenue EBITDA $691 45 74 42 30 408 23.2% 2.7% 8.9% 17.3% 17.3% 9.7% 21.1% 2.4% 9.5% 36.0% 36.0% 13.9% 37.3% 20.3% 25.0% 20.9% 30.3% 34.7% 19.1% 10.2% 12.9% 11.5% 9.7% 16.5% NM 19.5x NM NM NM 22.3x 5.58x 0.79x 2.34x 1.45x 0.96x 1.67x 29.3x 7.8x 18.2x 12.6x 9.9x 10.1x 4.57x 0.75x 2.07x 1.21x 0.87x 1.56x 21.5x 6.7x 15.1x 10.4x 9.6x 9.7x Mean Median 13.2% 13.5% 19.8% 17.5% 28.1% 27.7% 13.3% 12.2% 20.9x 20.9x 2.13x 1.56x 14.6x 11.4x 1.84x 1.38x 12.2x 10.1x 354 145 7.2% 8.5% 5.4% 9.2% 30.1% 33.1% 18.9% 9.6% 28.0x 24.9x 3.04x 1.21x 16.1x 12.6x 2.87x 1.14x 14.6x 11.0x Mean Median 7.8% 7.8% 7.3% 7.3% 31.6% 31.6% 14.2% 14.2% 26.4x 26.4x 2.13x 2.13x 14.4x 14.4x 2.01x 2.01x 12.8x 12.8x 8.1% (5.0%) 3.0% 11.3% 5.6% 7.1% (1.7%) 7.2% 11.8% 4.4% 78.3% 37.4% 18.8% 57.9% 24.6% 47.4% 4.9% 13.1% 20.8% 24.5% 31.3x NM 33.8x NM 29.4x 8.88x 1.00x 2.37x 3.68x 3.85x 18.7x 20.5x 18.1x 17.7x 15.7x 8.31x 1.01x 2.17x 3.32x 3.76x 16.2x 10.3x 15.6x 14.1x 14.9x 4.6% 5.6% 5.8% 7.1% 43.4% 37.4% 22.1% 20.8% 31.5x 31.3x 3.96x 3.68x 18.2x 18.1x 3.72x 3.32x 14.2x 14.9x (0.8%) (2.1%) 2.7% 8.4% (7.4%) (5.8%) 1.2% 8.2% 35.2% 37.2% 10.5% 31.3% 8.9% 16.5% 10.2% 4.9% NM 24.6x 13.8x NM 1.14x 1.69x 0.67x 0.45x 12.8x 10.2x 6.6x 9.3x 1.07x 1.64x 0.67x 0.45x 9.4x 9.1x NA NA 2.0% 0.9% (0.9%) (2.3%) 28.5% 33.3% 10.1% 9.6% 19.2x 19.2x 0.99x 0.91x 9.7x 9.8x 0.96x 0.87x 9.2x 9.2x $347 11 60 3,340 771 Mean Median Family Restaurant Bob Evans Farms, Inc. Denny's Corporation Frisch's Restaurants, Inc. Luby's, Inc. Revenue Growth 1 Year $118 76 21 20 Mean Median 14 of 16 Food and Beverage Earnings Release Calendar September 2014 Earnings Release Calendar5 Date Company 9/8/2014 9/9/2014 9/9/2014 9/11/2014 9/12/2014 9/17/2014 9/18/2014 9/18/2014 9/22/2014 Campbell Soup Company (NYSE:CPB) Toho Co., Ltd. (TSE:8142) Hilton Food Group plc (LSE:HFG) The Kroger Co. (NYSE:KR) Del Monte Pacific Limited (SGX:D03) United Natural Foods, Inc. (NasdaqGS:UNFI) ConAgra Foods, Inc. (NYSE:CAG) Rite Aid Corporation (NYSE:RAD) Finsbury Food Group plc (AIM:FIF) October 2014 Date Company 10/8/2014 10/8/2014 10/9/2014 10/16/2014 10/16/2014 10/23/2014 10/29/2014 10/30/2014 10/30/2014 10/30/2014 10/31/2014 Safeway Inc. (NYSE:SWY) Costco Wholesale Corporation (NasdaqGS:COST) Pepsico, Inc. (NYSE:PEP) Philip Morris International, Inc. (NYSE:PM) Diageo plc (LSE:DGE) Unilever plc (LSE:ULVR) Kraft Foods Group, Inc. (NasdaqGS:KRFT) Kellogg Company (NYSE:K) Bunge Limited (NYSE:BG) Maple Leaf Foods Inc. (TSX:MFI) Anheuser-Busch InBev (ENXTBR:ABI) November 2014 Date Company 11/3/2014 11/4/2014 11/4/2014 11/5/2014 11/5/2014 11/6/2014 11/6/2014 11/6/2014 11/6/2014 11/6/2014 11/6/2014 11/6/2014 11/6/2014 11/6/2014 11/7/2014 11/10/2014 11/13/2014 11/17/2014 Sysco Corporation (NYSE:SYY) Archer Daniels Midland Company (NYSE:ADM) Treehouse Foods, Inc. (NYSE:THS) Coca-Cola Bottling Co. Consolidated (NasdaqGS:COKE) SunOpta Inc. (TSX:SOY) Boulder Brands, Inc. (NasdaqGS:BDBD) Flowers Foods, Inc. (NYSE:FLO) Kerry Group (ISE:KRZ) Whole Foods Market, Inc. (NasdaqGS:WFM) Ajinomoto Co., Inc. (TSE:2802) Coca-Cola HBC AG (LSE:CCH) Dairy Crest Group plc (LSE:DCG) Tate & Lyle plc (LSE:TATE) Molson Coors Brewing Company (NYSE:TAP) Annie's, Inc. (NYSE:BNNY) ARIAKE JAPAN Co., Ltd. (TSE:2815) SABMiller plc (LSE:SAB) Tyson Foods, Inc. (NYSE:TSN) 15 of 16 Sources: 1. IMF 2. U.S. Bureau of Labor Statistics 3. Unweighted Average 4. U.S. Census Bureau 5. Capital IQ 6. Thomson Financial 7. S&P 8. Reuters Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services. Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. 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