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Restaurant Sector Valuation - 1

NOTE SUMMARY

  1. Mixed results for restaurant stocks in August as valuations fluctuated by segment.  Coffee and sandwich stocks had multiple expansion during the month, while casual dining and fast casual had multiple contraction.  Valuations for family dining, fine dining and pizza stocks largely remained flat month over month.
  2. Fast casual continues to be the most richly valued segment of the restaurant industry, although a significant decline in previously high-flying NDLS has recently hampered the overall category.
  3. Multiple expansion in the coffee category was led by strength at KKD and the recent surge in THI’s stock following the announcement of its merger with BKW.

 Restaurant Sector Valuation - 2

Restaurant Sector Valuation - 3

restaurant industry

Restaurant Sector Valuation - 4

Restaurant Sector Valuation - 5

Casual dining category

Restaurant Sector Valuation - 6

Restaurant Sector Valuation - 7

Coffee category

Restaurant Sector Valuation - 8

Restaurant Sector Valuation - 9

family dining category

Restaurant Sector Valuation - 10

Restaurant Sector Valuation - 11

fast casual category

Restaurant Sector Valuation - 12

Restaurant Sector Valuation - 13

fine dining category

Restaurant Sector Valuation - 14

Restaurant Sector Valuation - 155

Pizza category

 Restaurant Sector Valuation - 16

Restaurant Sector Valuation - 17

sandwich category

Restaurant Sector Valuation - 18

Restaurant Sector Valuation - 19

Have a wonderful Labor Day Weekend.

Howard Penney

Managing Director

Fred Masotta

Analyst