Cash Flow Stress Model by Brand

  • Assumptions for RR’s cash flow stress model for each $1B+ brand under coverage: 45 day restricted period for dine-in sales; -10% decline in drive-thru; +10% increase in to-go; +90% increase in delivery; +4% increase in labor margin;+3% increase in other operating expenses; and no changes to rent, P&I, royalty or advertising expense.
  • This likely represents overly pessimistic assumptions as many chains and operators will benefit from royalty, advertising & rent abatement (a fluid dynamic that we are tracking).
  • Our data shows better results for QSR chains with a higher % of drive-thru with more cash flow stress for sit-down chains.