Please recommend a Financial/Strategic Analysis framework for a Restaurant Chain

aech11's picture
aech11 - Certified Professional
Rank: Senior Chimp | banana points 19


What kind of financial/strategic analysis would you recommend for analyzing a Restaurant Chain? I want to expand my knowleedge regarding the analytic framework for this industry. It would be great if someone could provide some advice from a PE perspective.

Thank you.

Comments (3)

Mar 13, 2019

Are you looking to open a franchise, or acquire a franchisor? Are the stores all company owned and you're looking to buy the company?

A good first place to start would be to find a publicly traded company that matches the model you're looking at, and review their statements / presentations to see the key metrics they look at. Then review some free articles on SeekingAlpha

Mar 13, 2019

Thank you for answering.

In my case, I work as a financial/business analyst for a company in the food industry. One of our business segments is the restaurant industry. We already own a restaurant chain and we are always on the look for new chains to acquire.

The head of the division is a really smart guy who used to work in PE. He has taught me a few metrics for analyzing restaurants. However, I would like to contribute more insights.

Mar 13, 2019