Restaurant Valuation: O'Charley's and AFC
Posted: 16 Mar 2012
Date Written: December 14, 2010
This case is a comparative analysis of the strategy, accounting, performance, and valuation for two restaurant chains alternatively having a company-owned versus franchising strategy. It requires students to identify these two different strategies, and the related impact on the financial statements, assessment of current performance, and choice of comparable firms and prediction of future performance to perform the valuation.
Learning Objective: Provides an introduction to valuation contrasting two different strategies in the restaurant industry: company-owned versus franchising.
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