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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (77490)4/28/2025 9:28:34 AM
From: Elroy  Read Replies (1) of 78476
 
Saw a video on In & Out; they are one of the most profitable by store?

I don't think 20% EBITDA is terribly wonderful for fast food. KRUS and GENK (more like exotic restaurants than fast food, both are "dine in") get about 18% - 20% store level EBITDA. Keep in mind that excludes both corporate and expansion costs.

He said earlier than Burger King gets 30% store level EBITDA. That sort of makes more sense (especially if the store is busy) as the customer is often in the store for ~5 minutes rather than ~40 minutes it takes to dine in somewhere (quick).

Hmmm, Perplexity says Burger King's biggest franchisee gets a 9% EBITDA store level margin, and I'll bet that is declining with the latest news. McDonald's franchisees gets about a 15%-18% store level EBITDA margin. Perhaps 20% is quite good.

Burger King should be cash machine. I really wonder what's their current story?
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