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Fairness Opinion Detail

DNKN FOOpen source

Dunkin' Brands Group, Inc. to Inspire Brands (Roark Capital)

Restaurants/Oct 2020/BofA

Deal Information

Target
Dunkin' Brands Group, Inc.
Acquiror
Inspire Brands (Roark Capital)
Sector
Restaurants
Target Type
Public
Acquiror Type
Financial
Advisors
BofA

Transaction Metrics

Enterprise Value
$11.6B
EV / LTM Sales
EV / LTM EBITDA
25.3x
EV / Fwd EBITDA

Advisor Transaction Comparables

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

Advisor: BofA

EV/LTM EBITDA selected range: 16.0x - 21.0x

8 comps
-Portillo's Restaurant Group, Inc.Berkshire Partners LLC--14.3x-
-Tim Hortons Inc.Burger King Worldwide Inc.--15.8x14.9x
-Krispy Kreme Doughnuts, Inc.JAB Holding Company--18.1x15.6x
-Popeyes Louisiana Kitchen, Inc.Restaurant Brands International Inc.--20.6x19.0x
-Panera Bread CompanyJAB Holdings Company--17.8x16.4x
-Buffalo Wild Wings, Inc.Arby's Restaurant Group, Inc.--10.7x10.2x
-Pret A Manger Ltd.JAB Holding Company--15.0x-
-Sonic Corp.Inspire Brands, Inc.--15.8x15.3x
Mean-16.0x15.2x
Median-15.8x15.4x

DCF Assumptions

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

BofA

Open
WACC
6.3% – 8.1%
Terminal method
Exit multiple
Terminal assumption
15.0x – 18.0x (Adjusted EBITDA)
Forecast basis
Company Forecasts (FY2020E–FY2023E) and Company Forecast Extrapolations (FY2024E–FY2025E)… more

Company Forecasts (FY2020E–FY2023E) and Company Forecast Extrapolations (FY2024E–FY2025E), with Unlevered Free Cash Flow prepared by BofA Securities and authorized for use by the Company

Forecast period
beginning of Q4 2020 through December 31, 2025
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