Cedar Fair Entertainment Company’s Post

Very much enjoyed this informative panel at Restaurant Finance Monitor (RFDC) on the State of Restaurant M&A. Thank you Michael Halen for moderating and panelists Ashish Seth Josh Benn Matthew DiFrisco David Stiles for sharing your insights. A summary of my key take aways are as follows: While the back half of 2022 and first half of 2023 were quiet, there were promising signs of increased deal pipeline in Q3. Restaurant transactions represented the bulk of Retail M&A deals in Q3 at $10.9bn, (versus $700m in Q2), with Roark Capital’s acquisition of Subway for $9.5bn and Bain Capital’s acquisition of Fogo De Chao for $1.1bn, comprising the lion’s share. This was despite, yet another hike in Federal fund’s interest rates, bringing the Federal Fund’s benchmark rate to its highest in 22 years, at 5.5%.  There was some positive news today, with many analysts predicting a 250-275 basis point cut in interest rates in early 2024. Direct Lending funds are active, and many Private Equity funds are raising debt funds, but pricing is typically more expensive than traditional banks. Restaurants facing debt maturity deadlines, should consult proactively with their lender and financial advisors about re-financing options. Traditional lenders are still lending, but favor large scale franchises and QSR. There is approximately $1.4 trillion in dry powder at private equity funds and another $4 trillion in cash on strategic investor balance sheets; so no shortage of equity dollars to be deployed. Family offices are increasingly active restaurant investors and are hiring talent from private equity funds. They can take a longer-term view than traditional private equity firms, as they want to build generational wealth and typically take a less active role in day-to-day operations. There are no new “magic” tools in today’s deal marketplace, although Reps & Warranties insurance, Sell-Side quality of earnings and earnouts have become more prevalent. High growth brands, providing a premium product and consumer experience will prevail. Ultimately, the best measurement of performance, is positive cash flow and store-level EBITDA. Investing in corporate overhead is essential as you grow and will "eat into" overall Company-wide EBITDA, until economies of scale are achieved. Investors understand this dynamic and will focus primarily on store-level profitability. When evaluating potential investor partners, do your research up front. Reference check and find out how your potential partner behaved during a downturn. Technology is key to driving improved revenue and operational efficiencies and there are a wide variety of tools available today. If you are considering going public near-term, set realistic valuation expectations up front. It’s always better to over-deliver than over-promise.

I took a (very) deep dive into the present and future of Fogo de Chão. As you begin to peel back layers, there are definitely comparisons with Texas Roadhouse in terms of how the brand and CEO Barry McGowan look at guest experience. Namely, they both over-index on labor at all costs, with the goal to grow traffic long-term. But specific to Fogo, this is a brand with potential for 600 U.S. locations (850 globally), with AUVs above $10 million, and a guest profile that's only getting stronger. And where did it all begin? By using "joy" as the company's compass during difficult times.

<< Six Flags this week completed an $8 billion merger with rival Cedar Fair to create the largest amusement park operator in the United States. Together, they operate 42 amusement and water parks across 17 states. >> << The success of the deal will determine the future of these amusement parks, and diehard rollercoaster fans are watching carefully. Some are optimistic that the condition of Six Flags’ parks will improve. Others worry it will become more expensive to get into their favorite parks. >> https://lnkd.in/eTkYuacU

Really insightful conversation with Michael Morris of Cana Development and Marc Weller about modern food hall development and the relationship to mixed use projects. Take a listen!

Fran Groesbeck we can't wait to have you back in town again soon! We were so thrilled to host the Cookware and Bakeware Alliance's Annual Meeting this spring! 🍽 Want to fall head over heels for your next meeting destination?🥰 Visit the link below to learn more about your next PVD meeting! #goprovidence #providence #providenceri #rhodeisland #visitrhodeisland #testimonial #eventplanning #meetingsandevents #meetprofs #eventprofs

Know what to add to your whisky

It's National Hot Buttered Rum Day! Learn More About The History of Hot Buttered Rum https://bit.ly/3sxkcRm #hotbutteredrumday #hotbutteredrum #rumdrinks #rumcocktails

Check out this article featuring the grand opening of BBB-Mount Pleasant, South Carolina by The Post and Courier!

If you’re from Pickering, you’ve mostly eaten at the Big M, or atleast passed it on your way to the beach. It’s a staple to the city, but most don’t know it’s older than the city itself. Check out my article about the Big M to learn more about the company’s history and impact. https://lnkd.in/eRxFdTMQ

Chicago, the Windy City, has some hidden gems! From deep-dish pizza secrets to iconic landmarks, here are some fun facts that will make you see Chicago in a whole new light. How many did you know? Share your Chicago knowledge! 🍕🏙️ #ChicagoFunFacts #WindyCityWonders