Mergers & TribulationsTransaction Database
ContactSubscribe
Back

Fairness Opinion Detail

RUTH FOOpen source

Ruth’s Hospitality Group, Inc. to Darden Restaurants, Inc.

Restaurants/May 2023/Jefferies

Deal Information

Target
Ruth’s Hospitality Group, Inc.
Acquiror
Darden Restaurants, Inc.
Sector
Restaurants
Target Type
Public
Acquiror Type
Strategic
Advisors
Jefferies

Transaction Metrics

Enterprise Value
EV / LTM Sales
EV / LTM EBITDA
9.4x
EV / Fwd EBITDA

Advisor Transaction Comparables

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

Advisor: Jefferies

EV/LTM Adjusted EBITDA selected range: 8.0x - 11.0x

18 comps
May 2012Fogo de Chao, Inc.Thomas H. Lee Partners, L.P.--8.7x-
Jul 2012Yard House USA, Inc.
Represents multiple of annualized Yard House Fiscal 2013 EBITDA for Darden Restaurants, Inc.'s fiscal year ending May 2013 per investor presentation. Price implies 20.2x 2011 EBITDA multiple. No LTM information available.
Darden Restaurants, Inc.--13.3x-
Jan 2014CEC Entertainment, Inc.Apollo Global Management, LLC--7.9x-
May 2014Red Lobster
Pro forma for $1.5 billion sale-leaseback transaction completed in conjunction with Golden Gate Capital's acquisition of Red Lobster, resulting in pro forma multiple of 4.1x.
Golden Gate Capital--9.2x-
May 2015Frisch's Restaurants, Inc.NRD Partners I, L.P.--7.4x-
Jan 2017Bob Evans RestaurantsGolden Gate Capital--8.0x-
Mar 2017Cheddar's Scratch Kitchen
Multiple net of $30 million of estimated tax benefits per the transaction press release. Pro forma for announced $20 million to $25 million of annualized pre-tax run rate synergies expected to be realized by fiscal 2019, implied pro forma multiple of 7.9x.
Darden Restaurants, Inc.--10.4x-
Oct 2017Ruby Tuesday, Inc.NRD Capital--7.5x-
Nov 2017Buffalo Wild WingsInspire Brands (Arby's Restaurant Group)--10.9x-
Feb 2018Fogo de Chao, Inc.Rhone Capital--10.6x-
May 2018Barteca Restaurant GroupDel Frisco's Restaurant Group Inc.--18.0x-
Jun 2019Del Frisco's Restaurant Group, Inc.
18.7x implied multiple based on LTM Q2 2019 Adjusted EBITDA of $34.6 million as disclosed in Del Frisco's Restaurant Group, Inc. proxy statement. 12.0x multiple of 2019E Adj. EBITDA of $54.3 million as disclosed in Del Frisco's Restaurant Group, Inc. proxy statement.
L. Catterton--12.0x-
Jul 2021J. Alexander's Holdings, Inc.
Represents multiple of 2021E EBITDA per J. Alexander's Holdings, Inc. 2022 Proxy Statement.
SPB Hospitality--8.8x-
Sep 2021Twin PeaksFAT Brands--10.0x-
Apr 2022Main EventDave & Buster's Entertainment, Inc.--9.0x-
May 2022Keke's Breakfast CaféDenny's Corporation--12.0x-
Aug 2022BBQ HoldingsMTY Food Group Inc.--7.5x-
Mar 2023Firebirds Wood Fired Grill
N/A means not available.
Garnett Station Partners, LLC----
Mean-10.1x-
Median-9.2x-

DCF Assumptions

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

Jefferies

Open
WACC
14.25% – 16.75%
Terminal method
Perpetuity growth
Terminal assumption
2.0% – 4.0%
Forecast basis
Projections (stand-alone unlevered, after-tax free cash flows)
Forecast period
calendar years ending December 31, 2023 through December 31, 2027
Compare across opinions →