Restaurant Monthly July 2018

Restaurant Industry Commentary

TM Capital’s restaurant indices, except for QSR and Family Dining, outpaced the S&P 500 over the last 30 days, while same-store sales increased by 1.1% and same-store traffic decreased by 1.7%.High Bluff Capital Partners continued its buying spree, acquiring del Mar on the heels of its deal for Quiznos. Additionally, JAB Holding Company subsidiary acquired Insomnia Cookies, adding the late-night cookie purveyor to JAB’s already impressive roster of restaurants chains which includes and Einstein Bros. Bagels.

Current Restaurant Valuations by Price Point (TEV / EBITDA)

20.0x

13.8x 13.4x 13.4x 15.0x 12.1x 11.8x 12.7x 12.5x 11.9x 11.0x 10.7x 10.0x 20.0x 20.0x

5.0x 15.0x 13.5x 15.0x12.9x 13.5x 12.9x 11.8x 11.8x 11.8x 11.8x 10.2x 10.2x 10.5x 10.5x 9.0x 9.1x 9.0x 9.1x — 10.0x 10.0x 8.0x 7.7x 8.0x 7.7x QSR Fast Casual Family Dining Casual Dining Premium Dining 5.0x Median5.0x TEV / LTM EBITDA Median TEV / 2018E EBITDA

— — PublicQSR Market PerformanceQSRFast (LatestCasual Twelve FastMonths) CasualFamily Dining Family CasualDining Dining CasualPremium Dining Dining Premium Dining

140 134 130 120 124 110 119 100 113 Segment Index 90 109 80 102 70 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18

S&P 500 QSR Fast Casual Family Dining Casual Dining Premium Dining Recent Restaurant M&A Activity

($ in millions) Closed / Enterprise Industry Announced Target Acquiror Value EBITDA / Value Multiple Segment

7/20/2018A Insomnia Cookies Krispy Kreme $500.0 NA / NA QSR 07/12/2018 18 Applebee's Restaurants in OK, AR and KY Lousiaina Apple NA NA / NA Casual 07/09/2018 High Bluff Capital Partners NA NA / NA QSR 07/06/2018 Hurricane AMT, LLC FAT Brands Inc. $12.5 NA / NA Casual 06/21/2018 Native Foods Holdings Millstone Capital Advisors, LLC NA NA / NA Fast Casual 06/13/2018 Corky's Bar-B-Que, Inc. Dobbs Equity Partners LLC NA NA / NA Casual 06/11/2018 Quiznos High Bluff Capital Partners NA NA / NA Fast Casual 06/05/2018A Bertucci's Earl Enterprises $20.0 NA / NA Casual 05/21/2018 76 Long John Silver's Franchises in Indiana Long John Silver's, LLC NA NA / NA QSR 05/16/2018A Waitr Landcadia Holdings Inc. $308.0 NA / NA Delivery

Indices consist of all publicly-available information for restaurant operators in their respective price points. For full listing, please contact the TM Capital Restaurant Practice. Quarterly Gainers & Decliners Same Store Sales by Price Point by Price Point

Decliners / Gainers 10.0% 8.0% Q1 '18 Q4 '17 Q3 '17 6.0% Q2 '17 Q1 '17 Q4 '16 4.0% Q3 '16 Q2 '16 Q1 '16 2.0% Q4 '15 Q3 '15 Q2 '15 ― Q1 '15 Q4 '14 (2.0%) Q3 '14 Q2 '14 Q1 '14 (4.0%) Q4 '13 Q3 '13 Same Store Sales Growth

Quick Service Q2 '13 (6.0%) Q1 '13 Q4 '12 Same Store Sales Growth Q3 '12 (8.0%) Q2 '12 Q1 '12 Q4 '11 (10.0%) Q3 '11 Q2 '11 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (100%) (80%) (60%) (40%) (20%) ― 20% 40% 60% 80% 100% 2011 2012 2013 2014 2015 2016 2017 2018

Q1 '18 Q4 '17 Q3 '17 QSR Fast Casual Family Dining Casual Dining Premium Dining Q2 '17 Q1 '17 Q4 '16 Q3 '16 Q2 '16 Q1 '16 Q4 '15 Q3 '15 Selected TM Capital Restaurant Experience Q2 '15 Q1 '15 Q4 '14 Q3 '14 Q2 '14 Q1 '14 Q4 '13

Fast Casual Q3 '13 Q2 '13 Q1 '13 Q4 '12 Q3 '12 Q2 '12 Q1 '12 Q4 '11 Q3 '11 Q2 '11 (100%) (80%) (60%) (40%) (20%) ― 20% 40% 60% 80% 100%

Q1 '18 Q4 '17 Q3 '17 Q2 '17 Q1 '17 Q4 '16 Q3 '16 Q2 '16 Q1 '16 Q4 '15 Q3 '15 Q2 '15 Q1 '15 Q4 '14 Q3 '14 Q2 '14 Q1 '14 Q4 '13 Q3 '13

Family Dining Q2 '13 Q1 '13 Q4 '12 Q3 '12 Q2 '12 Q1 '12 Q4 '11 Q3 '11 Q2 '11 (100%) (80%) (60%) (40%) (20%) ― 20% 40% 60% 80% 100%

Q1 '18 Q4 '17 Q3 '17 Q2 '17 Q1 '17 Q4 '16 Q3 '16 Q2 '16 Q1 '16 Q4 '15 Q3 '15 Q2 '15 Q1 '15 Q4 '14 Q3 '14 Q2 '14 Q1 '14 Q4 '13 Q3 '13 Q2 '13

Casual Dining Q1 '13 Q4 '12 Q3 '12 Q2 '12 Q1 '12 TM Capital’s Restaurant Contacts Q4 '11 Q3 '11 Q2 '11 (100%) (80%) (60%) (40%) (20%) ― 20% 40% 60% 80% 100%

Q1 '18 Q4 '17 Q3 '17 Q2 '17 Q1 '17 Q4 '16 Q3 '16 Q2 '16 Q1 '16 Q4 '15 Q3 '15 Q2 '15 Q1 '15 Q4 '14 Q3 '14 Q2 '14 Q1 '14 Q4 '13 Q3 '13 Q2 '13 Q1 '13 Craig M. Gibson Philip S. Krieger John A. Dean Premium Dining Q4 '12 James S. Grien Q3 '12 Q2 '12 Managing Director Managing Director Vice President Q1 '12 Managing Director Q4 '11 Q3 '11 Q2 '11 [email protected] [email protected] [email protected] [email protected] (100%) (80%) (60%) (40%) (20%) ― 20% 40% 60% 80% 100% (404) 995-6235 (617) 259-2204 (404) 995-6242 (404) 995-6234

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