Overview

What We've Been Up To

On January 31, 2018, a family office acquired Huddle House, a portfolio company of Sentinel Capital Partners, adding to the continued momentum of HW&Co’s food and beverage group.

Company Description:

Huddle House is a leading franchisor and operator of over 350 home-style, full-service restaurants across the U.S. Huddle House occupies a differentiated niche in the restaurant industry through focusing on all-day breakfast, serving smaller communities with limited competition, and by combining the value and convenience of quick-service restaurants with the food quality and friendly service of a sit-down restaurant.

Key Value Drivers:

  • Attractive model with strong new unit performance.
  • Strong franchise system.
  • Food distribution network.
  • Leading position in small markets with significant whitespace for growth.
  • Deep, experienced management team.

2017 Restaurant Transactions

Economic Trends

Employment1

Labor Participation Rate1

At Home and Restaurant Spending3

Consumer Confidence2

Wage Growth vs. Consumer Price Index1

Commodity Price Indices1

Public Company Performance4,5

Solebury's Q3 2017 Restaurant Earnings Recap

Solebury’s quarterly restaurant industry earnings recap tracks the performance of select public restaurant concepts relative to industry research analysts’ expectations. Solebury Capital is a leading independent capital markets advisory firm, providing clients with independent advice, highly-informed judgment, and transaction management services. Harris Williams & Co. and Solebury Capital are subsidiaries of PNC. 

Public Company Performance - Limited Service4,5

Median Same-Store Sales Growth

LTM Same-Store Sales Growth (Quarterly Average)

Unit Count Growth (YOY)

LTM EBITDA Margin

Public Company Valuation - Full Service4,5

Median EV/LTM EBITDA Trend*

EV/LTM EBITDA

Indexed Share Price Change

Year Over Year Share Price Change

*Median of the Component Companies' Median EV/LTM EBITDA Multiple. 

 

Public Company Performance4,5

Summary

Financing Market Overview - Restaurants and Retail6

Average Primary Spreads

Average Secondary Spread

Credit Statistics

Loan Volume 

Summary M&A Stats4

M&A Transaction Information4,5

Notable Announced Transactions

  • Sentinel Capital Partners acquired Captain D’s Enterprises from Centre Partners in December 2017.
  • Captain D’s is a differentiated seafood QSR concept with 530 locations across 21 states. Approximately 300 of these locations are company-owned stores.

  • Bento Sushi was acquired by YO!Sushi, an iconic Japanese restaurant group in November 2017.
  • Bento Sushi is North America’s second largest sushi brand with over 600 company-owned locations and 1,700 partner sites. Bento Sushi operates both standalone QSRs and kiosks in supermarkets.

  • Centerplate, a portfolio company of Olympus Partners, was sold to Sodexo, a leading foodservice operator in December 2017.
  • Centerplate is a leading food and hospitality provider to major sports, entertainment, and convention venues.

Recently Closed Transactions

 

1.Bureau of Labor Statistics

2.University of Michigan

3.USDA Economic Research Service: Food Expenditures

4.Factset

5.Company Filings & Press Releases

6.S&P