What the biggest restaurant companies tell us about your business
These five public companies aren’t your peers, they provide historical references for diligence. Private-company comparisons depend on contract mix, earnings quality and operating scale.
Historical snapshot · Market data: April 2026 · Revenue and growth checked against SEC facts; other fields have separate limits
A franchise-heavy company records royalties while a company-owned chain records restaurant sales. Those revenue and margin denominators are different. Compare four-wall contribution, corporate overhead, leases and maintenance capex separately; a location count is not backlog. The retained private ranges are planning scenarios, not a transaction benchmark.
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 operating cash remains after the stated cash capital-spending measure, before debt service and owner distributions. When a PE firm or buyer looks at your books, these are the metrics they dig into.
Metric
TXRH
SHAK
DIN
CBRL
SG
5 days
8 days
22 days
7 days
4 days
18 days
15 days
30 days
40 days
18 days
0.72x
1.15x
0.85x
0.75x
1.45x
5.8%
3.9%
6.1%
1.7%
-17.5%
6.6%
11.5%
4%
4.6%
15.7%
25%
8.7%
N/A
10%
-37.6%
4.5%
9.5%
20%
5%
21.1%
Apply these numbers to your business
Prime Cost (Food + Labor)
Food consumed plus fully burdened restaurant labor, divided by the same restaurant-sales period. Inventory timing, payroll burden and revenue scope must match. Prime cost excludes occupancy and central costs.
Comparison and operating check
Level planning references, not observed percentiles: 62-72%, below 60%, and 50-55% for different hypothetical cost structures. The retained 58% TXRH scenario is unverified; the separate legacy 32% food and 30% labor references would sum to 62%, not 58%, if denominators matched. They do not establish its FY2025 prime cost.
Fictional fixed-sales calculation: one percentage point on $1.5M restaurant sales is $15K before offsetting costs and tax. A 58% versus 68% prime-cost scenario does not by itself establish a sale price. Check contribution, service quality, occupancy and central overhead.
Food Cost Percentage
Opening food inventory plus purchases minus closing inventory, with transfers, waste and meals handled consistently, divided by restaurant sales. Buying more inventory this week is not necessarily food consumed this week.
Comparison and operating check
Retained planning ranges, not a measured distribution: 28-35% overall; fine dining 30-38%; casual 28-32%; fast casual 25-30%. The legacy TXRH ~32% and SHAK 28-30% references have not been reproduced here and are not verified company targets.
Fictional fixed-sales calculation: two percentage points on $1.5M is $30K before offsetting costs and tax. A higher percentage may come from food inflation, menu mix, missing sales or stock count errors, not necessarily theft or poor purchasing. Reconcile quantity and mix before blaming the team.
Labor Cost Percentage
Paid wages, payroll taxes, benefits and workers compensation divided by the same restaurant-sales period. Include overtime, training, prep and paid nonservice hours; align owner labor with the intended comparison.
Comparison and operating check
Retained planning ranges, not company targets or observed percentiles: 28-38% overall; fine dining 33-40%; casual 28-35%; fast casual 22-28%. The SG 26-28% automation target and TXRH ~30% are unverified historical references, not measured automation savings.
A reduced schedule can hurt service or shift work onto an unpaid owner. Compare paid hours, sales per service hour, queue time, errors and contribution. No measured 1-2x valuation uplift is established by these ranges.
Average Unit Volume (AUV)
Annual sales for a defined eligible-unit cohort divided by that cohort's units. Specify owned versus licensed, mature versus new, opening weeks and restaurant versus merchandise sales. It is not automatically consolidated revenue divided by system-wide count.
Comparison and operating check
Retained planning references: independent $800K-$1.5M and $1.5-$3M; TXRH $8.3M and company-operated SHAK $3.7M are historical references with cohort definitions requiring confirmation, not guaranteed targets.
A fictional $3M location can leverage fixed rent more than a $1M location, but hours, capacity and variable costs may differ. AUV above $2M is a planning screen, not evidence of buyer interest or pricing power; calculate per-location contribution and growth cash.
Same-Store Sales Growth
Sales change for the issuer's eligible comparable-unit cohort. Eligibility differs by issuer; 18+ months is a retained example, not a universal rule. Split changes in visits, price and mix.
Comparison and operating check
A 3-5% range is a Level planning screen, not a healthy-market percentile. Retained TXRH 4.9% and SHAK 2.3% are historical sales references with cohort definitions requiring verification. CBRL positive comparable restaurant sales can coexist with weak traffic; SG negative comps and opening growth are separate measures.
Positive sales comps do not prove more visits, share gain or higher contribution. Menu pricing can mask lower transactions; a closure can change the comparison population. Three positive years do not establish a causal multiple uplift.
Occupancy Cost
Rent, property taxes, insurance and CAM divided by matched sales, with variable rent and lease terms identified. Separate cash rent from accounting lease expense and deposits.
Comparison and operating check
Retained Level planning screens of 6-10%, above 10%, above 12% and urban 12-15% are not measured regional distributions or automatic diagnoses of an underwater lease. Compare occupancy cash, contribution and break-even at your sales level.
Stress-test a sales decline, renewal step-up and deferred maintenance. A high occupancy ratio may still support contribution in a high-margin concept; low rent does not rescue negative contribution. Lease term, guarantees and transfer rights matter alongside the ratio.
Restaurant-Level Profit Margin
Issuer-defined four-wall contribution before corporate costs. Reconcile food, labor, occupancy, depreciation and pre-opening treatment; company definitions differ and it is not consolidated EBITDA or cash available to owners.
Comparison and operating check
Retained planning bands 15-20%, 20-25% and below 12% are not measured independent-restaurant percentiles. Legacy SHAK 22.6% and TXRH 18%+ are unverified company references whose period and definition are not matched to the scorecard. Do not treat them as its grossMargin field.
Bridge each location to central support, maintenance investment, leases and debt. A positive four-wall margin can coexist with negative consolidated cash. Compare weak units separately before adding stores or assuming a cost-of-capital conclusion.
Click any row to see what the metric means for your business and where private restaurant operators typically stand.
The cash flow gap
Company-operated restaurants and franchise royalty businesses have different receivable cycles. Dated DSO references are roughly 4-8 days for the owned chains and 22 for Dine Brands; retained DPO references span 15-40 days. These ratios are not measured order-payment ages. 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. Illustratively, $3M revenue at 10% EBITDA margin gives $300K annual EBITDA, or about $25K per month. Map payment dates before treating that accounting margin as available cash.
The Valuation Bridge
From public multiples to your exit number
Use public company valuations as one reference point, then examine the adjustments and return requirements a buyer would apply.
Public Companies7.2-25.5x EBITDA (retained observations)
Multi-Unit Operators (PE-Backed)6-10x EBITDA
Independent Multi-Unit3-6x EBITDA
Single-Unit / Owner-Operator1.5-4x SDE
Public Companies (7.2-25.5x EBITDA (retained observations))
Historical April 2026 unreproduced positive multiples for four companies. Sweetgreen has negative EBITDA and no meaningful multiple. EBITDA adjustments, enterprise-value builds and price dates are not matched across these observations; this is not a verified distribution or a private-company ceiling.
Multi-Unit Operators (PE-Backed) (6-10x EBITDA)
Level planning screen, not observed sales: test sustainable EBITDA after central support, growth funding, franchise restrictions and management replacement. No measured premium follows from backing or unit count.
Independent Multi-Unit (3-6x EBITDA)
Level planning screen, not a transaction sample. Reconcile each location before combining results; one profitable flagship can hide two losing stores and future lease obligations.
Single-Unit / Owner-Operator (1.5-4x SDE)
Level planning screen using seller discretionary earnings, not EBITDA. Reconcile owner compensation and add-backs to the cost of a replacement operator before comparing with a professionally managed group.
What drives the gap between public and private multiples
Prime Cost Control
The below-60%, 58% and 65-72% references are unverified planning scenarios, not a Texas Roadhouse result or a measured valuation relationship. Use food consumed plus fully burdened labor divided by the same restaurant-sales period. A favorable ratio created by missing inventory, unpaid labor or a different revenue denominator is not a saving.
Unit Economics & AUV
The retained $8.3M TXRH and $800K-$1.5M independent AUV references have unmatched cohorts. AUV can rise when a low-volume store closes or menu prices rise, without better unit contribution. Track mature-store traffic, check, contribution and occupancy together; openings and closures need separate schedules.
Replicability of Concept
Documentation is only a starting test. Trial another shift or site with a replacement manager, comparable service and accepted food/labor controls. Include training and regional oversight cost. System-wide counts do not demonstrate independent replication or a transferable premium.
Franchise vs. Company-Owned Model
Royalty margins and owned-restaurant margins use different sales bases. Inspect franchisee economics, royalties actually collected, support obligations and lease exposure alongside owned units; an asset-light franchisor can still carry debt and fund distressed locations.
Owner Dependence
Build a bridge from SDE to EBITDA after market compensation for the owner's replacement and recurring central costs. The separate legacy owner-dependence illustrations of 1.5-3x SDE and 4-6x EBITDA are not the main tier-table bounds (1.5-4x SDE and 3-6x EBITDA). These examples use different earnings bases; an owner vacation does not automatically cause a multiple jump.
Same-Store Sales Trajectory
Use the same eligible locations and period, then split transactions, menu price and mix. Positive comparable sales alongside negative traffic is possible. The retained 1-2x uplift is an unverified scenario, not a measured reward for three positive years.
Multiple arbitrage: why PE keeps buying restaurant brands
Fictional financing scenario, not observed acquisition outcomes: a five-unit operator at $500K EBITDA and 5x costs $2.5M before transaction costs. Combining it with ten similar five-unit operators gives 55 units and $5.5M unadjusted EBITDA. Buying all eleven at 5x would cost $27.5M before transaction costs. Compare the exit value with that total entry outlay, not the first operator's $2.5M price. At an assumed 8-10x exit multiple, gross enterprise value would be $44M-$55M before debt, integration costs, corporate overhead and any lost EBITDA. Entry ranges of 4-6x and exit ranges of 8-12x are planning inputs, not guaranteed prices. Keep EBITDA and SDE separate, and stress-test an unchanged or lower exit multiple.
Company-operated and franchised steakhouses, with Bubba's 33 and Jaggers concepts. Use restaurant sales, mature-unit performance and fully burdened labor when comparing its operating model with your own.
$5.9B
Revenue
11.9%
EBITDA Margin
18x
EV/EBITDA
95,000
Employees (approx.)
Why restaurant owners should care
Texas Roadhouse is the denominator check. A company-owned chain records restaurant sales; a franchisor records royalties. Build food cost from purchases plus opening inventory minus closing inventory, and labor from payroll including burden, on the same restaurant-sales period. The retained $8.3M AUV is a historical reference whose unit-cohort definition needs checking. It is not total company revenue divided by every system location, and it does not prove that your location can absorb the same occupancy cost. Review mature units separately from openings; a new store's ramp and pre-opening cost can hide in a chain average. The historical 18.0x multiple is unreproduced, not a demonstrated reward for a particular operating practice.
“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)Retained historical quote; exact wording has not been independently checked.
SHAK
Shake Shack
A fast-casual burger company with owned and licensed locations. Owned sales, licensing royalties and corporate costs need separate denominators.
$1.4B
Revenue
14.5%
EBITDA Margin
25.5x
EV/EBITDA
12,500
Employees (approx.)
Why restaurant owners should care
Shake Shack is the expansion-cost check. The retained 659 system-wide count mixes owned and licensed locations; company revenue divided by that count is not company-operated AUV. Underwrite the next opening with pre-opening costs, construction cash, ramp losses and central support, then compare mature-store contribution on a consistent basis. A restaurant-level margin omits corporate costs and is not EBITDA or free cash flow. The historical 25.5x multiple is an unreproduced market observation; this comparison does not isolate a growth premium or establish an exit price for a private concept.
“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)Retained historical quote; exact wording has not been independently checked.
Dine Brands Global
Parent of Applebee's and IHOP, with a franchise-heavy network, royalty and rental revenue, and company-operated restaurants. These are different operating models inside one consolidated company.
Cracker Barrel Old Country Store
A company-operated family-dining and retail business with Cracker Barrel and Maple Street Biscuit Company units. Restaurant sales and merchandise sales have different cost mixes.
M&A Deal Tracker
The consolidation wave is real
Selected restaurant transactions, restructuring and portfolio references from 2024-2025, plus a retained 2017 take-private. 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)
Retained historical Subway transaction reference. Price and implied multiple are unreproduced; system-wide restaurant sales are not franchisor revenue, and this observation does not isolate a franchise premium.
Retained transaction reference. A disclosed price is not a disclosed EBITDA multiple. Unless a calculation and primary source are shown, the multiple and target financial estimates have not been independently reproduced. Earnouts, assumed debt and forecast periods can change the ratio.
$9.6B
~16x
May 2024
Inspire Brands (Roark)
Portfolio expansion
Portfolio context, not a single priced acquisition: the retained >$15B platform value and ~12-15x multiple are unverified estimates with unmatched dates and earnings definitions.
Retained transaction reference. A disclosed price is not a disclosed EBITDA multiple. Unless a calculation and primary source are shown, the multiple and target financial estimates have not been independently reproduced. Earnouts, assumed debt and forecast periods can change the ratio.
>$15B platform
~12-15x
2024-2025
JAB Holding (Panera parent)
Panera Bread (take-private)
Retained historical JAB/Panera take-private reference. Price, target financial period and implied multiple require reconciliation; this row does not isolate the buyer's strategy or a bundling premium.
Retained transaction reference. A disclosed price is not a disclosed EBITDA multiple. Unless a calculation and primary source are shown, the multiple and target financial estimates have not been independently reproduced. Earnouts, assumed debt and forecast periods can change the ratio.
$7.5B
~15x
July 2017 (historical reference)
Dine Brands
70+ Applebee's from franchisees
Franchisor buying back struggling franchise locations to stabilize operations. Shows the other side of franchise M&A.
Retained transaction reference. A disclosed price is not a disclosed EBITDA multiple. Unless a calculation and primary source are shown, the multiple and target financial estimates have not been independently reproduced. Earnouts, assumed debt and forecast periods can change the ratio.
~$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.
Retained transaction reference. A disclosed price is not a disclosed EBITDA multiple. Unless a calculation and primary source are shown, the multiple and target financial estimates have not been independently reproduced. Earnouts, assumed debt and forecast periods can change the ratio.
>$1B total platform
~6-8x
2024-2025
Red Lobster / RL Investor Holdings (Fortress)
Red Lobster (restructuring)
Retained historical post-bankruptcy restructuring reference. Consideration and earnings basis need reconciliation; this row does not isolate a promotion, lease structure or other cause of the bankruptcy.
Retained transaction reference. A disclosed price is not a disclosed EBITDA multiple. Unless a calculation and primary source are shown, the multiple and target financial estimates have not been independently reproduced. Earnouts, assumed debt and forecast periods can change the ratio.
~$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.
Retained transaction reference. A disclosed price is not a disclosed EBITDA multiple. Unless a calculation and primary source are shown, the multiple and target financial estimates have not been independently reproduced. Earnouts, assumed debt and forecast periods can change the ratio.
Typically $10-100M
~4-8x
2024-2025
Sources and verification limits are linked with each company and deal. Values may be disclosed or reported; a multiple labeled implied is a calculation rather than necessarily a buyer disclosure. Check the price and earnings basis in the source before treating it as a transaction comp. “N/A” or “Not disclosed” means the terms were not publicly disclosed here.
Historical results and operator tests
What the dated results can help you test
A cheap plate can still be a costly order
A lower food-cost percentage can hide a smaller contribution per order, heavier prep labor or slower table turns. Compare menu items on food consumed, preparation time and contribution dollars per constrained service hour, then test waste and mix. Prime-cost planning bands are not observed restaurant percentiles.
Sources: Level operating diagnostic approach; historical public-company cost definitions provide context, not proof of causal results.
Franchise royalties do not erase franchisee distress
Dine Brands illustrates a different revenue denominator from owned chains. Royalty collection, franchisee unit cash flow, support and rental exposure need their own bridge. The retained 7.2x DIN observation and Denny's take-private reference are unreproduced historical ratios, not matched evidence of a franchise premium or brand discount.
Sources: DIN FY2025 filing context; retained transaction estimates with separate evidence limits.
Automation needs a demand test as well as a labor test
For a proposed automated line, measure matching shift demand, paid labor, throughput, error/waste and downtime. Include cash equipment, maintenance and training. Faster production does not create customers, and fewer scheduled hours do not prove lower payroll or a higher valuation. No 10-15% throughput uplift is established by this dataset.
Sources: Level operator measurement plan; SG and SHAK historical references, not a controlled automation study.
Buying eleven operators does not buy eleven identical earnings streams
A 55-unit roll-up scenario requires a store-level bridge for closures, lease commitments, manager replacement, central overhead and integration cash. Keep headline enterprise value separate from proceeds to owners after debt and costs. The listed deal references do not establish record deal flow or a representative transaction-multiple distribution.
Sources: Retained Roark, Flynn and other transaction references; illustrative Level planning scenario.
Check growth in visits before adding another location
Comparable sales can improve through price and mix while traffic weakens. Opening a new location can increase total revenue and still reduce cash after build-out and ramp losses. Reconcile eligible-unit sales, visits and contribution before deciding whether to grow, reprice, adjust staffing or close a weak unit.
Sources: Historical company sales/traffic definitions and Level operating diagnostic approach.
Get the full report: Level Restaurant Benchmarks 2026
Operating benchmarks for private restaurants, prime cost, food cost %, labor %, EBITDA margins, and historical public-company references for private-business diligence. Free PDF.
Q1 2026. Snapshot last updated: April 2026. Financials come from filings and earnings releases; fiscal periods and adjusted earnings definitions vary. Market valuations are historical snapshots, and the report does not promise current prices or automatic quarterly updates.
Want to know what PE sees when they look at your restaurant books?
We can compare your financials with these dated references and identify questions for a benchmarking review, not a valuation or audit.
2,200+ businesses benchmarked·$13.25B in revenue analyzed·Weekly action cadence
No commitment. Real numbers, not generic advice.
Methodology & Sources
Financial Data
Annual revenue and specifically listed fields are checked against linked historical SEC facts. Each profile retains its financial period and separate evidence limits for other ratios, market prices, quotes and transaction estimates.
Valuations & Multiples
EV/EBITDA values are retained April 2026 historical references with unreproduced EV builds and EBITDA definitions. Private ranges are Level planning scenarios, not a verified transaction distribution. 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 Annual period ended 2025-12-30; SEC filing dated 2026-02-27
SHAK Annual period ended 2025-12-31; SEC filing dated 2026-02-26
DIN Annual period ended 2025-12-28; SEC filing dated 2026-02-25
CBRL Annual period ended 2025-08-01; SEC filing dated 2025-09-26
SG Annual period ended 2025-12-28; SEC filing dated 2026-02-27
Frequently Asked Questions
Why should an independent restaurant owner care about publicly traded chains?
Use the chains to ask better questions, not to borrow an exit price. Owned restaurant sales, franchise royalties, retail merchandise and restaurant-level margins have different definitions. Reconcile your mature-unit contribution, central costs, leases and cash investment before comparing.
What EBITDA multiple can an independent restaurant realistically expect?
Retained Level planning ranges, not observed sales: single location 1.5-4x SDE; 2-5 units 3-6x EBITDA; 5-25 units 5-8x; 25+ units 7-12x+. Normalize owner replacement, recurring overhead, lease/debt adjustments and sustainable earnings. These screens do not establish what a buyer will offer or a measured premium for prime cost or growth.
Why does Shake Shack trade at 25x but Cracker Barrel trades at 9.5x?
The retained April 2026 table records 25.5x and 9.5x, but the enterprise-value builds and EBITDA bases are unreproduced. This comparison cannot isolate growth, traffic or brand changes as the cause. Review matched price dates, lease/debt conventions, mature-store contribution and investment requirements before drawing a valuation lesson.
How often is this data updated?
This is a retained April 2026 market snapshot, reviewed October 7, 2026. Market prices and deal status were not refreshed to that date. Annual revenue and specifically listed financial fields are checked against matched historical SEC facts. Operating ratios, quotes, private ranges and deal multiples have separate evidence limits.
Is this investment advice?
No. The Level Market Monitor supplies operating and capital-markets context. The financial table combines specifically matched public filing facts with historical market observations and estimates; it does not verify every field or quotation. Check the linked source period, definition and calculation before using a figure.