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Fairness Opinion Detail

SONC FOOpen source

Sonic Corp. to Inspire Brands

RestaurantsLimited-Service/Sep 2018/Guggenheim

Deal Information

Target
Sonic Corp.
Acquiror
Inspire Brands
Sector
RestaurantsLimited-Service
Target Type
Public
Acquiror Type
Strategic
Advisors
Guggenheim

Transaction Metrics

Enterprise Value
$2.3B
EV / LTM Sales
5.3x
EV / LTM EBITDA
15.3x
EV / Fwd EBITDA
14.6x

Advisor Transaction Comparables

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

Advisor: Guggenheim

EV / LTM EBITDA selected range: 11.0x - 15.0x

29 comps
Corporate
Aug 2018Zoe’s Kitchen, Inc.Cava Group, Inc.--13.3x-
Nov 2017Buffalo Wild Wings, Inc.Arby’s Restaurant Group, Inc.--11.4x-
Mar 2017Cheddar’s Scratch KitchenDarden Restaurants, Inc.--10.4x-
Feb 2017Popeyes Louisiana Kitchen, Inc.Restaurant Brands International Inc.--17.3x-
Oct 2014Peter Piper, Inc.CEC Entertainment, Inc.--9.3x-
Aug 2014Tim Hortons Inc.Burger King Worldwide Inc.--16.5x-
Nov 2012Teavana Holdings, Inc.Starbucks Corporation--16.8x-
Jul 2012Yard House USA, Inc.Darden Restaurants, Inc.--13.3x-
Sponsor
Aug 2018Jamba, Inc.Roark Capital Group--13.9x-
Mar 2018Bravo Brio Restaurant Group, Inc.Spice Private Equity Ltd.--5.6x-
Feb 2018Fogo de Chão, Inc.Rhone Capital--10.7x-
Dec 2017Qdoba Restaurant Corp.Apollo Global Management--6.5x-
Oct 2017Ruby Tuesday, Inc.NRD Capital Management--7.4x-
Mar 2017Checkers Drive In Restaurants, Inc.Oak Hill Capital Partners--11.3x-
May 2015Jack’s Family RestaurantsOnex Corporation--11.0x-
Jul 2014The Portillo Restaurant GroupBerkshire Partners--14.1x-
May 2014TGI Fridays RestaurantsSentinel Capital Partners, and TriArtisan Capital Partners--7.4x-
May 2014Red LobsterGolden Gate Capital--9.0x-
Jan 2014CEC Entertainment, Inc.Apollo Global Management--7.8x-
Nov 2013CKE Inc.
Printed as approximate ('~8.5').
Roark Capital Group--8.5x-
Sep 2012J. Alexander’s HoldingsFidelity National Financial--8.6x-
May 2012Fogo de Chão, Inc.Thomas H. Lee Partners--8.0x-
Jun 2011Arby’s Restaurant Group, Inc.Roark Capital Group--8.1x-
JAB
May 2018Pret a MangerJoh. A. Benckiser SE--15.0x-
Apr 2017Panera Bread CompanyJoh. A. Benckiser SE--18.2x-
May 2016Krispy Kreme Doughnuts, Inc.Joh. A. Benckiser SE--18.0x-
Sep 2014Einstein Noah Restaurant Group, Inc.Joh. A. Benckiser SE--9.9x-
Dec 2012Caribou Coffee Company, Inc.Joh. A. Benckiser SE--12.6x-
Jul 2012Peet’s Coffee & Tea, Inc.Joh. A. Benckiser SE--22.0x-
Mean-11.8x-
Median-11.0x-

DCF Assumptions

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

Guggenheim

Open
WACC
7.25% – 8.5%
Terminal method
Perpetuity growth
Terminal assumption
1.5% – 2.5%
Forecast basis
-
Forecast period
five-year projections (updated projections, fiscal years ending August 31)
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