Restaurant Deal Landscape for Mid-Year 2024

Headlines have been filled with a number of restaurant-related transactions this year with well-known names including MOD Pizza, Carrols Restaurant Group, Fogo de Chao, Ruth's Chris and Pollo Tropical. To gain perspective on current deal activity in the restaurant sector, Modern Restaurant Management (MRM) magazine reached out to Nixon Peabody Corporate Transactions associates Robert Pethick and Anthony Bova. 

What factors are fueling deal activity in restaurants right now? Has the thought there was a pent-up demand real and what makes the industry attractive to investors?RP: Amid heightened inflation, interest rates and food costs, buyers and sellers are looking for signs of stability when it comes to M&A in the second half of 2024.    The best indicator of stability is often a target’s strong financial returns and a track record of consistent cash flow.  Buyers are motivated to enter the industry for the economic returns, but also the scalability and growth many…