Unit Valuations

QSR & FSR FRANCHISEE M&A MULTIPLES OUTLOOK DIPS FURTHER INTO BEAR TERRITORY

Concerns about sales, labor, inflation and interest rates continue to weigh heavily on unit-level valuations with both the QSR & FSR indexes firmly in bear territory for the second consecutive month.

Cap Rates

CAP RATE SPREAD OVER 10-YR HOVERS NEAR ALL-TIME LOW

The spread between cap rates and the 10-yr. approached the record low set in April as real estate has become the most attractive asset class to NNN investors. QSR properties remain in favor as indicated by a 4.9% cap rate versus 5.9% for FSR properties during the month.