PRTODAY / NewswireToday Free press release distribution service network

Written by / Agency / Source: General Electric Company

Check Ads Availability|e-mail Article


Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!

M&A in U.S. Restaurant Industry Begins to Sizzle Says GE Capital - The U.S. restaurant industry is beginning to sizzle, according to the 23rd edition of the Chain Restaurant Industry Review, which was released today at the Restaurant Leadership Conference by GE Capital, Franchise Finance (GEFF) (NYSE: GE)
M&A in U.S. Restaurant Industry Begins to Sizzle Says GE Capital

 

NewswireToday - /newswire/ - Scottsdale, AZ, United States, 2013/04/23 - The U.S. restaurant industry is beginning to sizzle, according to the 23rd edition of the Chain Restaurant Industry Review, which was released today at the Restaurant Leadership Conference by GE Capital, Franchise Finance (GEFF) (NYSE: GE). NYSE: GE

   
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Restaurants/Hotels/Chain Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

• Top 100 restaurant chain sales reach ~$210 billion, or 51.1 percent of all restaurant sales;
• Proprietary Top 100 Chains and Largest 150 Operators lists revealed;
• 23rd annual Chain Restaurant Industry Review released at Restaurant Leadership Conference.

Merger and acquisition activity increased to $3.9 billion from $3.7 billion, and the total volume of syndicated leveraged loans in the restaurant space increased almost 21 percent last year.

In a sign that the American consumer was feeling more confident about disposable income levels, nominal restaurant sales rose 4.2 percent to $425.6 billion in 2012. Sales are projected to increase 3.8% to $441.9 billion this year.

The Top 100 restaurant chains’ system-wide sales were nearly $210 billion, representing more than half of all restaurant sales last year, and gaining 0.5 percent market share from 2011. Their sales grew 4.7 percent year-over-year, outperforming both the foodservice and the restaurant industries, as well as nominal GDP. Total unit growth for the Top 100 at 1.8 percent was the highest since 2007. Franchised unit growth jumped 180 basis points to 77.3 percent of the total the largest share since the survey’s inception 23 years ago.

Institutional investors were eager to get a piece of the pie. Private equity firms paid premium purchase prices multiples of eight to 10 times revenues for growth companies and franchisors. Non-sponsor deals jumped 46.0% to $11.2 billion in 2012, while sponsor deals declined 11.2%. Nearly three-quarters (73 percent) of the total volume was driven by refinancing activity.

After two years of single initial public offerings, four were successfully completed in 2012. Three companies went private.

"In contrast to the slow but promising recovery in the global financial markets, the U.S. restaurant industry has been very focused on growing and expanding," said Agustin Carcoba, president and CEO of GEFF. "The activity has been driven by the improving economy, changing consumer habits and shifting U.S. demographics. People who are investing in the restaurant industry understand the importance of three factors operational performance, financial metrics and asset strategy and how they have changed through the latest cycle."

Full service restaurant (FSR) sales increased 3.1 percent to $202.2 billion, while quick service restaurant (QSR) sales increased 5.6 percent to $179.3 billion. The FSR category includes family, casual, high-end casual and fine dining restaurants, typically those that provide table service. The QSR category includes limited service, fast casual or take-out restaurants with limited menus and, typically, no table service.

QSR menu prices increased at a 3.2 percent annual rate in 2012 compared to 2.2 percent in 2011. FSR menu prices increased 2.6 percent in 2012 compared to 2.3 percent in the prior year.

With the cost of goods sold (COGS) and labor costs comprising more than 60 percent of operating expenses at both FSRs and QSRs, it’s important for operators to understand how to achieve higher margins. By carefully managing COGS as well as advertising, rent, royalties, etc., operators may be able to achieve substantial savings and, thus, increase profits.

"Restaurants typically have relatively limited profit margins, so operators are always trying to adapt to changing consumer tastes while balancing their other costs," Carcoba said. "Ultimately, these are successful entrepreneurs who are trying to grow their businesses by enhancing their endangered brand equity and pleasing their customers. When they’re able to reinvest, they can make capital expenditures for example, investing in new technologies or making equipment purchases and eventually open new locations and hire more employees. It’s the American dream in action."

GEFF assembles its proprietary Top 100 Chains and Largest 150 Operators lists annually for publication in the Chain Restaurant Industry Review. Industry sales figures included here are attributable to the National Restaurant Association.

About GE Capital, Franchise Finance
GE Capital, Franchise Finance (gefranchisefinance.com) is a leading lender for the U.S. franchise finance market via direct sales and portfolio acquisitions. With more than 30 years of experience and $9 billion in served assets, it provides financing to more than 2,000 customers and 16,000 property locations. The business specializes in financing mid-market operators with multiple stores in the restaurant and hospitality industries. Its team of industry experts works with entrepreneurial customers to help them develop individualized growth plans. GE Capital, Franchise Finance customers also receive access to its proprietary industry research and cutting-edge digital tools.

GE Capital (gecapital.com) offers consumers and businesses around the globe an array of financial products and services.

GE (ge.com) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works.

 
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Restaurants/Hotels/Chain Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Written by / Agency / Source: General Electric Company

 
 

Availability: All Regions (Including Int'l)

 

Traffic Booster: [/] Quick Newswire Today Visibility Checker

 

Distribution / Indexing: [+] / [Company listed above is a registered member of our network. Content made possible by PRZOOM / PRTODAY indexing services]

 
 
# # #
 
Restaurants Hotels Chain - Purchase keywords tags fast food chain restaurants rapid pizza delivery order pizza online directory finder / Banner Ads!.

 
  Your Banner Ad showing on ALL
Restaurants/Hotels/Chain articles,
CATCH Visitors via Your Competitors Announcements!


M&A in U.S. Restaurant Industry Begins to Sizzle Says GE Capital

Company website links NOT available to basic submissions
It is OK to republish and/or LINK any newswire for any legitimate media purpose as long as you name Newswire Today and LINK as the source.
 
  Is this your article?
Activate ALL web links and social stream by Upgrading to Press Release PREMIUM Plan Now!

GE News Center |
Publisher Contact: Lisa Tibbitts - GE Capital Americas 
203-956-4582 lisa.tibbitts[.]ge.com
 
Newswire Today - PRZOOM / PRTODAY disclaims any content contained in this article. If you need/wish to contact the company who published the current release, you will need to contact them - NOT us. Issuers of articles are solely responsible for the accuracy of their content. Our complete disclaimer appears here.
IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any General Electric Company securities in any jurisdiction including any other companies listed or named in this release.

Restaurants/Hotels/Chain via RSSAdd NewswireToday - PRZOOM Headline News to FeedBurner
Find who RetweetFollow @NewswireTODAY



Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!


Read Latest Articles From General Electric Company / Company Profile


Read Restaurants/Hotels/Chain Most Recent Related Newswires:

Meliá Hotels International Returns to The Ibex-35
Meliá Hanoi Named One of the Best 5-star Hotels in Vietnam At the Vietnamese Tourism Awards
Meliá Hotels International - A Relevant Player in Germany’s Hospitality
CaixaBank and Meliá Join Forces to Allow Mobile Payments in Hotels Operated by The Chain
All Bar One Launches New Loyalty App
Meliá Hotels International Launches New Hotel & Begins Redevelopment of A 5,000 M² Site
Meliá Hotels International Named Best Digital Transformation Enterprise At The Digital Enterprise Show
Meliá Hotels International Expands Portfolio with 16th Hotel in Indonesia
KFC UK and Ireland Names AirTag IT Supplier of the Year for its Mobile-based Loyalty App
Sol House Announces Partnership with Ibiza Rocks
Meliá Hotels International Expands Footprint in Indonesia with Addition of Meliá Bintan
Meliá Hotels International Announces its First Gran Meliá Hotel in Iran Alongside A Leading Iranian Industrial & Developer Group
Paradisus Resorts Unveils New Look, Celebrates with Interactive Campaign ‘Where You Want To Be’
Meliá Hotels International Is Set to Launch New Hotel, INNSIDE New York NoMad in the Heart of Manhattan
Meliá Hotels International Extends its Presence in Qatar with the New Innside Doha

Boost Your Social Network
& Crowdfunding Campaigns


LIFETIME SOCIAL MEDIA WALL
NewswireToday Celebrates 10 Years in Business


PREMIUM Members


Visit  NAKIVO, Inc.

Visit  JobsWare.com





 
  ©2016 Newswire Today — Limelon Advertising, Co.
Home | About | Advertise/Pricing | Contact | Investors | Privacy/TOS | Sitemap | FRANCAIS
newswire, PR free press releases distribution service magazines engine news alert newsroom press room breaking news public relations articles company news alerts newswiredistribution ezine bizentrepreneur biznewstoday digital business report market search pr firms agencies reports distri-bution today investor relation successful internet entrepreneurs newswire distribution prtoday.com freenewswiredistribution asianewstoday bizwiretoday USA pr UK today - NOT affiliated with PRNewswire as we declined their partnership offer in 2013
 
PRTODAY & NewswireTODAY are NOT affiliated with USA TODAY (usatoday.com)