Basic financial benchmarks,metrics, and growth
Production cost& control
Gross Margin:
- (Fast-casual sector): 13% (8-19%) (Including operating expenses mainly)
- (Chicken sub-sector): 14.5% (8-19%) (Including company operating expenses mainly)
- (Hamburger sub-sector):12% (7-16%) (Including operating expenses mainly)
- (Mediterranean – sub sector):10% (Including operating expenses mainly)
- (Mexican-sub sector): 15% (14-15%) (Including operating expenses mainly)
- (Pizza-sub sector): 52% (Including mainly franchise expenses)
- (Pasta/noodle sub sector): 10.5% (Including operating expenses mainly)
- Gross Margin (before depreciation): 18%
- Depreciation/sales: 5%
- Depreciation/ CAPEX: 1.2
Margins
Operating Margin:
- (Fast-casual sector): 3%
- (Chicken sub-sector): 6.5% (2.5-9%)
- (Hamburger sub-sector): 1%
- (Mediterranean – sub sector): -0.5%
- (Mexican-sub sector): 5%
- (Pizza-sub sector): 1%
- (Pasta/noodle sub sector): -2%
EBITDA / Sales: average 8%
Free Cash Flow before working capital / Sales:
- (Fast-casual sector): 0.8%
- (Chicken sub-sector): 2.5%
- (Hamburger sub-sector): -1%
- (Mediterranean – sub sector): -2%
- (Mexican-sub sector): 3%
- (Pizza-sub sector): 0%
- (Pasta/noodle sub sector): -0.5%
EBI / Asset: 0%
Marketing & general management expenses
SG&A/ Sales:
- (Fast-casual sector): 10%
- (Chicken sub-sector): 8%
- (Hamburger sub-sector): 11%
- (Mediterranean – sub sector): 11%
- (Mexican-sub sector): 9.5%
- (Pizza-sub sector): 51%
- (Pasta/noodle sub sector): 10%
Financing &liquidity
- Debt / Asset: 30%
- Interest / EBITDA: 10%
Growth
2015 2016 2017 2018(annualized)
- Growth in comparable sales (fast-casual sector, US market)
- Average 3% -0.8% -2% -1%
- Range -5-8% -16-3% -13-3% -13-5%
- Growth in comparable transactions (fast-casual sector, US market)
- Average 0.2% -1.5% -3.4% -5%
- Range -2-3.5% -4-3% -9-2% -9-0%
- Growth in comparable sales (hamburger-fast-casual, US market)
- Average 3.3% 0.3% -0.2% -0.35%
- Range 1-7% -3-2.5% -3-3% -4-5%
- Growth in transaction counts (hamburger-fast-casual, US market)
- Average 0.8% -1.2% -2% -5%
- Range -1-3.5% -3.5-3% -6-2%0 -8-0%
- Growth in comparable sales (Chicken/wings-fast-casual US market)
- Average 4.3% 0.35% -0.6% -0.1%
- Range 2-8% -4-3% -4-1.5% -6-7%
- Growth in comparable sales (Mediterranean fast-casual, US market)
- Average 6% 4% -2% -2.5%
- Growth in comparable sales (Mexican –fast-casual US market)
- Average 3% -1.4% -7% 1%
- Range 0.2-4.4% -2.5-0% -8-(-6)% 1-2%
- Growth in comparable transactions (Mexican –fast-casual US market)
- Average -3.3% -9% -4.5%
- Range -3.5-(-3)% -9% -9-(-2)%
- Growth in comparable menu price (Mexican –fast-casual US market)
- Average 4% 2% 2% 5%
- Range 3-5% 1.5-2.2% 1.5-2% 4-7%
- Growth in comparable sales (Pizza-fast-casual US market)
- Average -5% -16% -13%
- Growth in comparable sales (pasta/noodles fast-casual US market):
- Average 0% -1% -2.4% 3%
- Average Increase in SG&A: 13% 12% 2%
- Increase in depreciation:
- Average Increase in CAPEX:
- AVG Increase in Operating Income: 56% -12% -17% -40%
- AVG Increase in cash inflow/share: 25% -13% -25% -50%
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Philosophy of Corporate Operation
A philosophy behind our work is that, when selling the same products and services to the same type of customers, companies should always have opportunities to gain the same performance in terms of finance and operating. It should be relatively easier and less risky for a below-average company to improve its profitability by copying its peers’ winning strategies or management method with existing products and services than jumping into a segment where it has to face a market with new products and services. It is because copying a peer does not always need to invest considerable capital and resources and it does not need to face uncertainties in a new market as well. For most of times, it may only involve some of minor alternations of company’s management and operation such as an optimization of production or a reallocation of resource. It is certainly true that it is impossible for every company to improve its performance by taking our relatively analytical method without significant capital input. However, there is nothing to lose to make a pre-estimate for your company with our data.
