• RR’s Industry Data Report on Unit Economics provides: (1) FYE 2020 unit level AUV along with COGs, labor, royalty, advertising, other operating and EBITDAR margin estimates for 44 chains; (2) a 5-year history of unit economic performance; (3) an analysis of food and labor cost drivers; and (4) aggregate G&A margins, rent margins and leverage ratios based on RR’s annual lender survey.
  • Report highlights: (1) The average 2020 EBITDAR margin for the $1B+ chains fell to an 18 year low due to significant sales declines coupled with higher labor and other operating costs which were partially off-set by lower COGs; (2) 1H:21 restaurant sales rebounded strongly due to easy y/y comparisons, pent-up demand and government stimulus; (3) 2021 EBITDAR margin is recovering nicely due to the dramatic sales increases which have helped drive down labor costs, more than off-setting commodity inflation; and (4) QSR franchisee leverage levels declined in 2020 and FCCR coverage remains solid reflecting this segment’s strong results while FSR leverage ratios are not available as the sharp sales declines distorted EBITDA (negative in some situations) with liquidity becoming the main focus for these borrowers.

IDR Unit Economics 2021 – Report Outline