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Fairness Opinion Detail

BKC FOOpen source

Burger King Holdings, Inc. to 3G Capital

RestaurantsLimited-Service/Sep 2010/Goldman Sachs, Morgan Stanley

Deal Information

Target
Burger King Holdings, Inc.
Acquiror
3G Capital
Sector
RestaurantsLimited-Service
Target Type
Acquiror Type
Financial
Advisors
Goldman Sachs, Morgan Stanley

Transaction Metrics

Enterprise Value
$4.0B
EV / LTM Sales
1.6x
EV / LTM EBITDA
9.0x
EV / Fwd EBITDA
8.6x

Advisor Transaction Comparables

Comparable transactions cited by the advisor, excluding the subject transaction.

Advisor: Goldman Sachs

13 comps
May 2010Dave & Buster’s, Inc.Oak Hill Capital Partners, L.P.$570M-7.6x-
Apr 2010CKE Restaurants, Inc.Apollo Management, L.P.$694M-6.6x-
Jun 2008Landry’s Restaurants, Inc.Tilman J. Fertitta$1.2B-6.7x-
Apr 2008Wendy’s International, Inc.Triarc Companies, Inc.$2.7B-8.9x-
Aug 2007RARE Hospitality International, Inc.Darden Restaurants, Inc.$1.4B-11.7x-
Jun 2007Applebee’s International, Inc.IHOP Corp.$2.1B-10.5x-
Nov 2006OSI Restaurant Partners, LLCBain Capital Partners LLC and Catterton Partners and Company$3.0B-10.6x-
Mar 2006NPC International, Inc.Merrill Lynch Global Private Equity, Inc.$615M-6.7x-
Mar 2006Quiznos Master LLCJP Morgan Partners LLC$1.4B-10.6x-
Dec 2005Dunkin Brands, Inc.Bain Capital Partners LLC, the Carlyle Group and Thomas H. Lee Partners LP$2.4B-13.3x-
Jun 2000Buffets Holdings, Inc.Caxton-Iseman Capital, Inc.$575M-5.0x-
Jan 1999Sbarro, Inc.Sbarro Family$585M-7.4x-
Sep 1998Domino’s Pizza, Inc.Bain Capital, Inc.$1.1B-8.2x-
Mean-8.8x-
Median-8.2x-

Advisor: Morgan Stanley

AV / LTM EBITDA selected range: 8.0x - 10.0x

31 comps
Domestic Transactions
May 2010Dave & Buster’sOak Hill Capital Partners--7.6x-
Apr 2010CKE RestaurantsApollo Management--6.1x-
Mar 2010On-The-Border Cafes, Inc.
No multiple printed (blank in the SC 14D9/A table).
Golden Gate Capital----
Jun 2009Church’s ChickenFriedman Fleischer & Lowe--7.7x-
Aug 2008Romano’s Macaroni GrillGolden Gate Capital--3.0x-
Apr 2008Wendy’s International, Inc.Triarc Companies, Inc.--9.1x-
Jan 2008ABP Corporation
No multiple printed (blank in the SC 14D9/A table).
LNK Partners----
Dec 2007Smokey Bones Barbeque and Grill (Darden)Sun Capital Partners (Barbeque Integrated, Inc.)--4.3x-
Nov 2007Mitchell’s Fish Market
No multiple printed (blank in the SC 14D9/A table).
Ruth’s Chris Steak House Inc.----
Aug 2007RARE Hospitality International Inc.Darden Restaurants Inc.--11.8x-
Aug 2007Boston Market Corporation
No multiple printed (blank in the SC 14D9/A table).
Sun Capital Partners Inc.----
Jul 2007Applebee’s International, Inc.IHOP Corp.--10.4x-
Dec 2006Hard Rock Café International, Inc.
No multiple printed (blank in the SC 14D9/A table).
Seminole Hard Rock Hotel & Casino----
Nov 2006OSI Restaurant Partners, Inc.Bain Capital Partners LLC & Catterton Partners--8.8x-
Oct 2006Logan’s RoadhouseBlack Canyon and BRS--6.8x-
Aug 2006Cheddar’s Inc.
No multiple printed (blank in the SC 14D9/A table).
Catterton Partners & Oak Investment Partners----
Jul 2006Ryan’s Restaurant Group, Inc.Buffets, Inc.--10.9x-
Mar 2006The Quiznos Corporation
No multiple printed (blank in the SC 14D9/A table).
CCMP Capital Advisors LLC----
Mar 2006Jamba Juice Company
No multiple printed (blank in the SC 14D9/A table).
Services Acquisition Corp. International----
Dec 2005Dunkin Brands Inc.Carlyle Group, Bain Capital, THL Partners--12.9x-
Sep 2005El Pollo Loco, Inc.Trimaran Capital Partners, Inc.--12.5x-
May 2005Au bon Pain, Inc.
No multiple printed (blank in the SC 14D9/A table).
Management----
Nov 2004Church’s Chicken
No multiple printed (blank in the SC 14D9/A table).
Arcapita Inc.----
Sep 2004First Watch Restaurants, Inc.
No multiple printed (blank in the SC 14D9/A table).
Catterton Partners----
May 2002Fresh Enterprises Inc. (Baja Fresh)Wendy’s International Inc.--16.3x-
International Transactions
Feb 2008Pret A Manger
No multiple printed (blank in the SC 14D9/A table).
Bridgepoint Capital Ltd.----
Dec 2006Caffe Nero Group PLCRome Bidco (Paladin Partners and Saratoga)--15.1x-
Oct 2006Quick Restaurant NVCDC Capital Investissement--10.0x-
Feb 2006Tele Pizza SAFoodco Pastries--15.4x-
May 2003PizzaExpress PLCInvestor Group--6.2x-
Jul 2002Burger King Corp.
No multiple printed (blank in the SC 14D9/A table).
TPG, Bain Capital, GS Capital Partners----
Mean-9.7x-
Median-9.6x-

DCF Assumptions

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

Goldman Sachs

Open
WACC
8.0% – 10.0%
Terminal method
Exit multiple
Terminal assumption
6.0x – 7.5x (2015 EBITDA (one-year forward))
Forecast basis
-
Forecast period
2011-2015 (Refranchise Case)

Morgan Stanley

Open
WACC
8.0% – 9.0%
Terminal method
Exit multiple
Terminal assumption
6.5x – 8.5x (FY2015 EBITDA)
Forecast basis
-
Forecast period
fiscal 2011-2015 (management forecasts, five cases)
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