1851

<div id="pastingspan1"><span style="">According to a recent story in <a href="http://www.nrn.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-valuations-remain-high-despite-unpredictability-of-the-market-3816" target="_blank" rel="nofollow" target="_blank">Nation's Restaurant News</a>, the Dow Jones was down more than four percent as of late February amid concerns about low oil prices, the stronger U.S. dollar and where the global economy was headed. </span></div><div id="pastingspan1"><span style=""><br /></span></div><div id="pastingspan1"><span style="">That drop has affected publicly traded restaurants as well in early 2016, with several reaching new 52-week lows in the first two months of the year.</span></div><div id="pastingspan1"><span style=""><br /></span></div><div id="pastingspan1"><span style="">According to industry experts, multiples, the method for measuring valuations by multiplying the purchase price or enterprise value of a company by its earnings, have also fallen a few notches, but continue to trade at healthy levels related to historical averages.  </span></div><div id="pastingspan1"><span style=""><br /></span></div><div id="pastingspan1"><span style="">So what does it mean? Restaurants continue to be a popular investment source for private equity firms and hedge funds looking to further diversify their portfolios. </span></div><div id="pastingspan1"><span style=""><br /></span></div><div id="pastingspan1"><span style="">The story highlights how investors were eager to put money into public brands such as <a href="http://www.potbelly.com/franchising/default_splash.aspx?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-valuations-remain-high-despite-unpredictability-of-the-market-3816" target="_blank" rel="nofollow" target="_blank">Potbelly Corp.</a>, <a href="https://www.elpolloloco.com/franchising/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-valuations-remain-high-despite-unpredictability-of-the-market-3816" target="_blank" rel="nofollow" target="_blank">El Pollo Loco, Inc.</a>, <a href="https://www.habitburger.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-valuations-remain-high-despite-unpredictability-of-the-market-3816" target="_blank" rel="nofollow" target="_blank">The Habit Restaurants Inc.</a>, and <a href="https://www.shakeshack.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-valuations-remain-high-despite-unpredictability-of-the-market-3816" target="_blank" rel="nofollow" target="_blank">Shake Shack Inc.</a>, earning them prices exceeding the rest of the industry.</span></div><div id="pastingspan1"><span style=""><br /></span></div><div id="pastingspan1"><span style="">These types of public valuations are then often used as the benchmark for transactions that occur in the private market. </span></div><div id="pastingspan1"><span style=""><br /></span></div><div id="pastingspan1"><span style="">However, the story went on to point out that since new laws are enabling smaller companies to go public quicker, those companies are skipping some of the deals that typically needed to happen years ago for a company to reach the public offering stage.  </span></div><div id="pastingspan1"><span style=""><br /></span></div><div id="pastingspan1"><span style="">Investments in smaller companies drove prices up for fast casual or QSR brands, which are now taking calls from investors when they only have one or two locations open. And these valuations are not fluctuating dramatically despite what might be going on in the stock market.</span></div><div id="pastingspan1"><span style=""><br /></span></div><div id="pastingspan1"><span style="">To read the original story, <a href="http://nrn.com/finance/despite-stock-volatility-restaurant-valuations-still-high?NL=NRN-02_&amp%3BIssue=NRN-02__20160303_NRN-02__517&amp%3Bsfvc4enews=42&amp%3Bcl=article_1_3&amp%3Butm_rid=CPG06000001666135&amp%3Butm_campaign=7953&amp%3Butm_medium=email&amp%3Belq2=27dceff2bfd14aecafc348f64d441d74&utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurant-valuations-remain-high-despite-unpredictability-of-the-market-3816" target="_blank" rel="nofollow" target="_blank">click here</a>. </span></div>

1851 Franchise

Volatility seems to be the norm again on Wall Street, but the impact on restaurants appears to be modest for now

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

Restaurant Valuations Remain High Despite Unpredictability of the Market  

restaurant-valuations-remain-high-despite-unpredictability-of-the-market

Layne's Chicken Fingers

image of laynes chicken finger restaurant with 4 hands holding cups in the air to celebrate 

 Layne’s Chicken Fingers Crosses Mid-Year Mark With 11 New Restaurants Opened, Including the First Time the Brand has Seen Two Openings on the Same Day on July 14

laynes-chicken-franchise-growth-2025

HomeTeam Inspection Service

image of an employee from home team checking an outlet with an ipad

HomeTeam Inspection Service Franchise Owners Diversify Income With Multi-Service Model

hometeam-inspection-service-revenue-streams

Right at Home

image of jennifer selden right at home franchisee for a webinar with nick powills

Right at Home Franchise Owner Jennifer Selden To Share Franchise Journey, Sparked by Personal Care Experiences

jennifer-selden-right-at-home-franchise-journey-webinar

Paris Baguette Canada

image of a paris baguette bakery cafe latte with delicious food, croissants, and pastries

What Paris Baguette Franchisees Have To Say About Their Experiences

paris-baguette-franchise-canada-eric-chang

image of right at home franchisee gregory brewer for a webinar with nick powills

Gregory Brewer To Share 20-Year Franchise Journey With Right at Home in Upcoming Webinar

gregory-brewer-right-at-home-franchise-winston-salem-webinar

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

AI Is Reshaping Franchising: $100 Billion Valuations and Hyper-Localized Advertising

ai-is-reshaping-franchising-100-billion-valuations-and-hyper-localized-advertising

Mega Franchisee Sizzling Platter Acquired by Bain Capital

mega-franchisee-sizzling-platter-acquired-by-bain-capital

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Unlocking Superpowers: How KidStrong Is Building the Next Generation of Confident Kids — and Thriving Franchise Owners

kidstrong-franchise-confident-kids

Jollibee -Launch-Story-Brand-Page-Deep-Dive-2025

Jollibee Franchise Costs, Fees, Profit and Data for 2025

jollibee-franchise-costs-fees-profit-and-data-for-2025

Picture of kids for franchise business Kidstrong which focuses on child development and fitness

KidStrong Is Pediatrician-Recommended for Raising Confident, Capable Kids and Families Can't Get Enough

kidstrong-child-development-program

Image of a kid growing up, developing with kidstrong, high fiving and smiling. 

How KidStrong has Become the Franchise Disrupting Child Development by Partnering with Purpose-Driven Franchise Owners 

kidstrong-franchise-opportunity-child-development

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Blending Tech, Hospitality and Health Care: How Three Women From Different Worlds Came Together to Build a Paris Baguette Franchise

paris-baguette-franchise-flower-mound-texas

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

Sola Salons Franchisee Grows Salon Freedom Into a Multi-State Powerhouse 

Restaurant Valuations Remain High Despite Unpredictability of the Market

MORE STORIES LIKE THIS