The Level Market Monitor
RestaurantsWhat the biggest restaurant companies tell us about your business
These five public companies aren’t your peers — they’re what an exit looks like at scale. PE firms use their financials as the starting comp set when they value your restaurant group.
Updated quarterly · Last update: April 2026 · All data from SEC filings
$12.4B
Combined Revenue
5 public restaurant companies
5,900+
Combined Locations
Company-owned & franchised
13.8x
Median EV/EBITDA
What the market pays
7
Acquisitions Tracked
Major deals since 2024
Industry Scorecard
Five public restaurant companies, side by side
| Company | Revenue | Growth | Gross Margin | EBITDA Margin | Locations | EV/EBITDA | Rev/Employee |
|---|---|---|---|---|---|---|---|
| TXRHTexas Roadhouse | $5.9B | +9.4% | 16.5% | 11.9% | $816M | 18x | $62K |
| SHAKShake Shack | $1.4B | +15.4% | 21.8% | 14.5% | $659M | 25.5x | $116K |
| DINDine Brands Global | $879M | +8.2% | 48.5% | 25% | $3.4B | 7.2x | $651K |
| CBRLCracker Barrel Old Country Store | $3.5B | +0.5% | 33% | 6.7% | $662M | 9.5x | $53K |
| SGSweetgreen | $679M | +0.4% | 15.2% | -1.6% | $271M | x | $117K |
What this means for you
A 3-location restaurant group won’t trade at 15x EBITDA. But these public multiples set the ceiling for the entire restaurant industry. Private restaurant groups in the $3–30M range typically trade at 3–7x EBITDA. The gap is explained by brand strength, unit economics consistency, and management depth. Understanding the ceiling helps you understand what to work toward.
Operating Benchmarks
How these companies manage costs, cash, and unit economics
Revenue and margins only tell half the story. These are the numbers that show how efficiently a restaurant business actually runs — prime cost, labor management, equipment spend, and how much cash they actually take home. When a PE firm or buyer looks at your books, these are the metrics they dig into.
| Metric | TXRH | SHAK | DIN | CBRL | SG |
|---|---|---|---|---|---|
Collection SpeedHow many days before you get paid | 5 days | 8 days | 22 days | 7 days | 4 days |
Supplier Payment SpeedHow many days you take to pay vendors | 18 days | 15 days | 30 days | 40 days | 18 days |
Short-Term LiquidityCan you cover bills due in 12 months? | 0.72x | 1.15x | 0.85x | 0.75x | 1.45x |
Cash Actually Generated% of revenue that becomes real cash | 6.2% | 5% | 7% | -0.6% | -16.8% |
Equipment & Vehicle SpendTrucks, tools, facilities as % of revenue | 7.8% | 12% | 2.2% | 5% | 18% |
Return on Owner’s InvestmentProfit per dollar invested in the business | 25% | 10.5% | 14% | 3.5% | -35% |
Overhead RateNon-job costs as % of revenue | 4.5% | 9.5% | 20% | 5% | 21.1% |
Click any row to see what the metric means for your businessand where private restaurant operators typically stand.
The cash flow gap
Public restaurant companies collect immediately (DSO near zero for cash/card sales) but manage payables strategically at 15–30 days. The real cash gap for private restaurants is different: it’s the lag between daily sales and weekly/monthly fixed costs — rent, insurance, equipment leases. At $3M revenue and 10% EBITDA margin, poor cash management can wipe out an entire month’s profit.
The Valuation Bridge
From public multiples to your exit number
PE firms start with public company valuations as the ceiling, then adjust down. Here’s how the math works.
Public Companies (6–25x EBITDA)
TXRH, SHAK, DIN, CBRL, SG — wide range reflects growth rates and business model differences. Franchise models (DIN) are asset-light but trade lower on declining traffic. Growth concepts (SHAK, SG) trade at premiums. Operators (TXRH) are valued on execution quality. Family dining (CBRL) trades depressed on negative traffic — Denny's was taken private in Jan 2026 at ~7x EBITDA for the same reason.
Multi-Unit Operators (PE-Backed) (6–10x EBITDA)
Multi-unit franchise operators (5-50+ units) and proven independent concepts with management teams. Multiple depends on brand strength, unit economics, and growth pipeline.
Independent Multi-Unit (3–6x EBITDA)
Owner-operated restaurants with 2-5 locations. Multiple depends heavily on concept replicability, location quality, and whether the business runs without the owner in the kitchen.
Single-Unit / Owner-Operator (1.5–4x SDE)
Single location restaurants. Valued on seller's discretionary earnings (SDE). Buyer pool is other operators, SBA loans, and career-changers. The owner IS the business — which caps the multiple.
What drives the gap between public and private multiples
Prime Cost Control
Prime cost (food + labor) below 60% is the dividing line. Texas Roadhouse manages prime cost at ~58% despite serving premium steaks. Most independent restaurants run 65-72%. That 5-12 point gap is the difference between a multiple of 3x and 6x.
Unit Economics & AUV
Average Unit Volume (revenue per location) drives everything. TXRH does $8.5M+ per unit. A typical independent does $800K-$1.5M. Higher AUV means better leverage on fixed costs (rent, insurance, utilities), which flows directly to margins and multiples.
Replicability of Concept
Can the restaurant be duplicated in another market without the original owner? Shake Shack proves you can scale a concept to 659 locations. If your recipes, systems, and training are documented, you're a concept. If they're in your head, you're a job.
Franchise vs. Company-Owned Model
Franchisors (DIN at 99% franchised) earn royalties with minimal capital investment. Company-operated concepts (TXRH, SHAK) require heavy capex. The franchise model is valued for its capital efficiency, but only if the brand is strong enough to attract franchisees.
Owner Dependence
This is the #1 factor killing restaurant valuations. If the chef-owner is the reason customers come, the business is worth 1.5-3x SDE. If the restaurant runs profitably when the owner is on vacation for a month, the multiple jumps to 4-6x+.
Same-Store Sales Trajectory
Texas Roadhouse delivered 4.9% comp sales growth at company restaurants while the category slowed. Sweetgreen and Cracker Barrel posted negative or flat comps. PE buyers project forward from your comp trend — positive comps mean the business is strengthening, negative comps mean it's deteriorating. Three years of positive comp data is worth 1-2x on your multiple.
Multiple arbitrage: why PE keeps buying restaurant brands
PE firms buy multi-unit operators at 4-6x EBITDA, professionalize operations (standardized food cost, labor scheduling, marketing), add units, and exit at 8-12x. A 5-unit pizza franchise doing $500K EBITDA at 5x is worth $2.5M. Combine it with 10 similar operators into a 60-unit platform, professionalize the back office, and the combined entity is worth 8-10x EBITDA. This is why franchise aggregators like Flynn Group now operate 2,400+ units across multiple brands.
What private restaurants sell for (by revenue tier)
| Revenue Tier | Typical Multiple | Typical Buyer | Key Drivers |
|---|---|---|---|
| Single location (<$1.5M revenue) | 1.5–4x SDE | Individuals, SBA loans, career-changers | Owner dependence, lease terms, concept transferability, location quality |
| 2–5 units ($1.5M–$10M revenue) | 3–6x EBITDA | Larger operators, emerging franchisees, lower middle-market PE | Unit economics consistency, management team, prime cost control, same-store trends |
| 5–25 units ($10M–$50M revenue) | 5–8x EBITDA | PE platforms, franchise aggregators, strategic acquirers | Brand strength, AUV, management depth, growth pipeline, franchise agreement terms |
| 25+ units / platform | 7–12x+ EBITDA | Large PE, public company strategics (TXRH, DIN, Inspire) | Scale, multi-market presence, proprietary technology, supply chain leverage, audit-ready financials |
Company Profiles
Inside each company’s financials
Texas Roadhouse
The highest-performing casual dining chain in America. Company-owned and franchised steakhouses with industry-leading AUVs and same-store sales growth — the standard-bearer for what great restaurant operations look like at scale.
$5.9B
Revenue
11.9%
EBITDA Margin
18x
EV/EBITDA
95,000
Employees
Why restaurant owners should care
Texas Roadhouse is what a great restaurant looks like at scale — $5.9B in revenue with 9.4% growth (lapping a 53-week 2024) and best-in-class unit economics across 816 restaurants. Their average unit volume (AUV) is roughly $8.3M per Texas Roadhouse, nearly double the casual dining average. They achieve this not through discounting but through relentless operational execution: fresh-made rolls, hand-cut steaks, and managing prime cost below 60%. PE firms buying restaurant groups compare every target's unit economics to TXRH.
“We delivered another year of record revenue with comparable restaurant sales growth of 4.9% at company restaurants. Our commitment to legendary food and legendary service continues to drive traffic in every quarter.”
— Jerry Morgan, CEO — FY2025 Earnings Release (Feb 19, 2026)
Shake Shack
The premium fast-casual category leader. Fine-dining quality burgers at scale with a cult following and aggressive unit growth — 659 system-wide locations and climbing.
$1.4B
Revenue
14.5%
EBITDA Margin
25.5x
EV/EBITDA
12,500
Employees
Why restaurant owners should care
Shake Shack trades at 25.5x EBITDA — the highest in this group — because the market is paying for growth, not current profitability. They opened 45 new company-owned locations in 2025 and delivered 2.3% same-store sales growth. For a restaurant owner, Shake Shack shows how the market values growth potential: they pay a premium for concepts that can scale. If your restaurant has a replicable concept, that growth narrative matters to buyers.
“We delivered a record year of new Shack openings, margin expansion, and same-Shack sales growth. Our path to profitability at scale is coming into focus as our operating model continues to mature.”
— Rob Lynch, CEO — FY2025 Earnings Release (Feb 2026)
Dine Brands Global
Parent company of Applebee's and IHOP — two of the largest full-service restaurant chains in America. Primarily a franchisor (99% franchised), making them essentially a royalty collection business.
Cracker Barrel Old Country Store
Iconic American family-dining and retail concept operating 660+ company-owned Cracker Barrel locations plus ~70 Maple Street Biscuit Company units. One of the last large public family-dining pure-plays — a direct read on traditional sit-down dining economics.
M&A Deal Tracker
The consolidation wave is real
Major restaurant acquisitions since 2024. Who’s buying, what they’re paying, and what it means for the industry.
| Buyer | Target | Deal Value | Multiple | Date |
|---|---|---|---|---|
| Roark Capital | Subway (majority stake) Largest restaurant deal ever. PE firm buying the biggest franchise chain by unit count (37,000+ locations). Demonstrates franchise model premium. | $9.6B | ~16x | May 2024 |
| Inspire Brands (Roark) | Portfolio expansion Platform now includes Arby's, Buffalo Wild Wings, Sonic, Jimmy John's, Dunkin', Baskin-Robbins. The PE roll-up playbook at maximum scale. | >$15B platform | ~12-15x | 2024-2025 |
| JAB Holding (Panera parent) | Panera Bread (take-private) European family office buying American fast-casual leader. Coffee+bakery+fast casual bundling strategy. | $7.5B | ~15x | 2024 |
| Dine Brands | 70+ Applebee's from franchisees Franchisor buying back struggling franchise locations to stabilize operations. Shows the other side of franchise M&A. | ~$65M | ~5-6x | 2024-2025 |
| Flynn Restaurant Group | Multiple Taco Bell, Pizza Hut, Wendy's locations Largest franchise operator in the U.S. continues to add units. Demonstrates multi-brand franchise aggregation strategy. | >$1B total platform | ~6-8x | 2024-2025 |
| Red Lobster / RL Investor Holdings (Fortress) | Red Lobster (restructuring) Post-bankruptcy acquisition by Fortress Investment Group after disastrous "endless shrimp" promotion. A cautionary tale in restaurant M&A. | ~$375M (bankruptcy acquisition) | N/A (distressed) | Sep 2024 |
| Private Equity (various) | Multi-unit restaurant operators Steady PE activity in multi-unit restaurant acquisitions, particularly franchise operators with 5-50 units and concepts with proven unit economics. | Typically $10-100M | ~4-8x | 2024-2025 |
Sources: Company IR press releases, SEC filings, Reuters. Deal values and multiples as disclosed by buyers. “N/A” where terms were not publicly disclosed.
What the CEOs Are Saying
Key themes from recent earnings calls
Operational excellence commands the highest multiples
Texas Roadhouse grew revenue 9.4% to $5.88B (lapping a 53-week 2024) and trades at ~18x EBITDA — not because of a fancy concept, but because they execute relentlessly on food quality and prime cost management. Their ~12% EBITDA margin is best-in-class for company-operated casual dining. PE firms are looking for operators who can demonstrate this kind of margin discipline, not just top-line growth.
Sources: TXRH FY2025 10-K; FY2025 earnings release
The franchise model premium is shrinking for weak brands
Dine Brands (7.2x EBITDA) is 99%+ franchised — asset-light with recurring royalties — yet it trades at fractions of Roark's acquisition multiples. Denny's, also ~96% franchised, was taken private in Jan 2026 at ~7x EBITDA after years of negative comps. The franchise model only commands a premium when the brand drives traffic. Declining same-store sales erode franchise value faster than they erode company-operated value because the franchisor can't control execution.
Sources: DIN FY2025 10-K; Denny's take-private filings (Oct 2025–Jan 2026)
Technology and automation are the new table stakes
Sweetgreen's Infinite Kitchen automation shows 10-15% higher throughput and meaningfully lower labor cost. Shake Shack invested heavily in digital ordering (now 40%+ of sales). Even Texas Roadhouse is expanding online ordering and kitchen display systems. For a restaurant owner in 2026, labor automation isn't futuristic — it's the new cost of competing.
Sources: SG FY2025 earnings call; SHAK FY2025 10-K
PE restaurant deal flow hitting record levels
Roark Capital's $9.6B Subway acquisition was the largest restaurant deal ever. Flynn Group crossed 2,400 units. PE-backed restaurant platforms are scaling faster than ever because the franchise model provides predictable cash flows at low capex. For independent restaurant owners with 3+ locations, this means there are more buyers in the market than ever — if your unit economics are clean.
Sources: Roark Capital; Flynn Group portfolio; Restaurant Finance Monitor
Labor cost management is the operating margin battleground
Labor cost as a percentage of revenue ranges from 28% (Sweetgreen, targeting automation) to 35% (Texas Roadhouse, full-service dining). Every restaurant CEO on this list cited labor as their #1 operational challenge. The restaurants winning the margin game are investing in scheduling technology, cross-training, and selective automation — not simply cutting hours.
Sources: All 5 company FY2025 earnings releases and 10-K filings
Get the full report: Level Restaurant Market Monitor Q1 2026
All 5 company profiles, operating benchmarks, M&A deal tracker, valuation bridge, and private restaurant multiple ranges. Free PDF.
Financial data sourced from SEC EDGAR filings (10-K) and company earnings releases. Market valuations from publicly available data. Updated quarterly.
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Methodology & Sources
Financial Data
All company financials sourced from SEC EDGAR filings (Form 10-K) and official company earnings releases. Revenue, margins, unit counts, and same-store sales are as reported by each company for their most recent completed fiscal year.
Valuations & Multiples
Enterprise value and EV/EBITDA multiples use publicly available market data. Private restaurant multiple ranges are sourced from M&A advisory reports and disclosed transaction terms. Multiples are point-in-time estimates.
Disclaimer: The Level Market Monitor is for educational and informational purposes only. Level is not a registered investment advisor, broker-dealer, or valuation firm. The information presented does not constitute investment advice, financial advice, or a recommendation to buy or sell securities. All forward-looking statements reflect company guidance and public analyst estimates, not Level projections. Past performance does not guarantee future results.
SEC Filings Referenced
- TXRH — FY2025 10-K (filed Feb 2026); FY2025 earnings release (Feb 19, 2026)
- SHAK — FY2025 10-K (filed Feb 2026); FY2025 earnings release (Feb 2026)
- DIN — FY2025 10-K (filed Feb 2026); FY2025 earnings release (Feb 2026)
- CBRL — FY2025 10-K (filed Sep 2025); FY2025 earnings release (Sep 17, 2025)
- SG — FY2025 10-K (filed Feb 2026); FY2025 earnings release (Feb 26, 2026)
Frequently Asked Questions
Why should an independent restaurant owner care about publicly traded chains?
Because these companies set the financial benchmarks for the entire industry. When a PE firm or franchise aggregator evaluates your restaurant, they compare your prime cost, labor percentage, and same-store trends to these public benchmarks. Texas Roadhouse's ~12% EBITDA margin is the gold standard for company-operated casual dining. Understanding where you stand relative to these benchmarks helps you price an exit and know what to improve.
What EBITDA multiple can an independent restaurant realistically expect?
Single location: 1.5-4x SDE. 2-5 units: 3-6x EBITDA. 5-25 units: 5-8x. 25+ units: 7-12x+. The biggest drivers are prime cost control (below 60%), owner dependence (can it run without you?), concept replicability, and same-store sales trajectory. A 3-unit restaurant group with 12%+ EBITDA margins, documented systems, and a manager who runs day-to-day operations can command the top of its range.
Why does Shake Shack trade at 25x but Cracker Barrel trades at 9.5x?
Growth and momentum. Shake Shack grew revenue 15.4% and opened 45 new locations with improving unit economics. Cracker Barrel has posted negative traffic for most of the past two years and a polarizing 2024–2025 brand refresh disrupted operations. The market pays for concepts that are scaling, not concepts that are maintaining — and it punishes category laggards. Denny's was taken private in Jan 2026 at ~7x EBITDA for the same reason. The lesson: operational trajectory matters more than business model structure.
How often is this data updated?
We update the Market Monitor quarterly, after each earnings season. All financial data is sourced directly from SEC filings (10-K and 10-Q) and company earnings releases. Market valuations reflect publicly available data at the time of update.
Is this investment advice?
No. The Level Market Monitor is for educational purposes — helping restaurant owners understand the capital markets context around their industry. We are not a registered investment advisor. All financial data is sourced from public filings and is presented as-is.
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