Recapitalizations of Franchisors: Partnership Considerations

Recapitalizations of Franchisors: Partnership Considerations

Executive Summary Bird Dog Capital Group, LLC ( Bird Dog ) is pleased to share with you our thoughts on considerations to evaluate when choosing a partner Bird Dog s perspective is that of a private equity firm We will also discuss attributes of franchisors (and franchisees) that private equity firms look for when assessing investment opportunities The Bird Dog team has decades of investing and operational experience in the franchise industry Invested over $200 million in equity capital across nine franchise brands Franchisor and franchisee transactions in both the food and non-food segments of the industry Private equity firms are very active in the franchise space and could present a viable option as a partner 2

Getting Started The first part of the process is critical and could determine which path you ultimately take What are you solving for? Lifestyle Retirement Partner for growth Generational transition Liquidity Price Structure Initial needs and future needs Legacy Values that are important to you Changes to your brand Sustainability of your brand 3

Preparation By failing to prepare, you are preparing to fail Financial statements Audited statements are preferred; however, internals may be relied upon Adjustments for owner s expenses o Consider getting a transaction advisory services firm to perform a quality of earnings review Performance relative to budget Diligence checklist Operational metrics (key performance indicators) Financial forecast Legal, Human Resources, Insurance, IT, and Environmental (if applicable) Forming your team Consider hiring an investment banker / broker Engage legal counsel Prepare key members of your management team 4

The Recapitalization Process A summary of the steps you can expect Prepare for Sale Solicit Bids Negotiate Documents Exit Typically 30 to 60 days Non-binding initially Evaluate proposals and keep select bidders in the process Negotiate terms for LOI Documents necessary to consummate the transaction are dependent upon structure Action Items (15 to 30 week Process) Obtain all necessary approvals and close o o o Regulatory Landlord Others Hire Advisor Prepare Data Room Develop Sales Materials IOIs, Mgmt. Preso & Diligence Responses LOI & Definitive Docs Implement Post- Acquisition or Transition 5

There are numerous factors that can impact the valuation you could expect Size Revenue EBITDA SSS Same Store Sales performance Price and traffic Valuation Margins Product / service mix Stability Growth Organic Acquisition 6

There are numerous factors that can impact the valuation you could expect History Business lifecycle Tenure of management Balance Sheet Current debt outstanding Working capital Valuation Assets Date of last remodel Location / trade area Brand Equity Brand awareness Brand integrity 7

There are numerous factors that can impact the valuation you could expect Org Chart Strength of management Areas that need augmentation Economy General economic conditions Credit markets Valuation Risks Litigation history and pending Revenue and profits concentration Structure All cash transaction Owner participation in structure 8

Some prospective partner will analyze metrics of publicly-traded companies, precedent transactions and develop financial models to arrive at valuation COMPARABLES BY SERVICE FORMAT EBITDA Price Equity Enterprise P/E P/E/G EV / EBITDA EV / Revenue Margin CY2017 CY2018 CY2017 CY2018 IQ_LTM CY2017 CY2018 IQ_LTM CY2017 CY2018 IQ_LTM Name 11/10/17 Value Value CY17 CY18 CY17 CY18 LTM CY17 CY18 LTM CY17 CY18 LTM Affordable Upscale & Fine Dining Ark Restaurants Corp. $0.00 $84 $103 0.0x 0.0x 0.0x 0.0x 9.9x 0.0x 0.0x 0.7x 0.0x 0.0x 6.8% Bravo Brio Restaurant Group, Inc. $2.15 $33 $76 11.0x 9.6x 2.0x 1.7x 3.2x 2.9x 3.0x 0.2x 0.2x 0.2x 5.9% The Cheesecake Factory Incorporated $44.31 $1,966 $2,090 17.1x 16.7x 1.3x 1.3x 7.8x 8.2x 8.0x 0.9x 0.9x 0.9x 11.8% Del Frisco's Restaurant Group, Inc. $13.15 $279 $319 18.0x 16.6x 1.5x 1.4x 7.9x 7.1x 6.7x 0.9x 0.9x 0.8x 11.2% Fogo de Chao, Inc. $10.75 $304 $414 14.0x 12.9x 0.9x 0.8x 8.0x 7.7x 6.9x 1.3x 1.3x 1.2x 16.8% J. Alexander's Holdings, Inc. $9.85 $145 $163 28.1x 21.9x 0.0x 0.0x 8.4x 6.6x 6.3x 0.7x 0.7x 0.7x 8.4% Kona Grill, Inc. $2.05 $21 $55 NM NM 0.0x 0.0x 14.9x 12.5x 6.7x 0.3x 0.3x 0.3x 2.0% Ruth's Hospitality Group, Inc. $19.90 $599 $624 19.2x 17.3x 1.4x 1.3x 10.3x 9.9x 9.0x 1.6x 1.5x 1.4x 15.2% Mean $429 $480 15.3x 13.6x 0.9x 0.8x 8.8x 6.9x 5.8x 0.8x 0.7x 0.7x 9.8% Median $212 $241 17.1x 16.6x 1.1x 1.0x 8.2x 7.4x 6.7x 0.8x 0.8x 0.7x 9.8% Casual Dining BJ's Restaurants, Inc. $31.20 $644 $809 22.6x 19.9x 1.4x 1.3x 6.9x 7.5x 6.7x 0.8x 0.8x 0.8x 11.3% Bloomin' Brands, Inc. $16.98 $1,550 $2,666 12.7x 12.3x 1.1x 1.1x 6.9x 6.5x 6.6x 0.6x 0.6x 0.6x 9.4% Brinker International, Inc. $33.74 $1,562 $2,916 10.7x 10.2x 0.7x 0.7x 6.8x 6.9x 6.8x 0.9x 0.9x 0.9x 13.7% Buffalo Wild Wings, Inc. $118.85 $1,844 $2,237 23.9x 21.5x 1.5x 1.3x 8.7x 8.3x 7.9x 1.1x 1.1x 1.1x 12.8% Chuy's Holdings, Inc. $22.75 $385 $367 23.3x 21.4x 1.4x 1.3x 9.5x 9.1x 8.2x 1.0x 1.0x 0.9x 11.0% Cracker Barrel Old Country Store, Inc. $154.64 $3,726 $3,972 18.6x 17.0x 2.9x 2.6x 9.9x 10.0x 9.0x 1.4x 1.3x 1.3x 13.7% Darden Restaurants, Inc. $82.64 $10,220 $11,010 19.7x 17.9x 2.1x 1.9x 11.3x 10.6x 9.6x 1.5x 1.4x 1.3x 13.2% Dave & Buster's Entertainment, Inc. $48.84 $2,007 $2,288 18.7x 16.9x 1.2x 1.1x 8.7x 8.3x 7.4x 2.1x 2.0x 1.7x 24.4% Denny's Corporation $12.30 $803 $1,097 22.5x 20.3x 0.0x 0.0x 11.8x 10.8x 10.4x 2.1x 2.1x 2.0x 17.7% DineEquity, Inc. $46.63 $839 $2,137 11.3x 11.3x 0.0x 0.0x 9.5x 10.1x 10.4x 3.5x 3.5x 3.6x 36.7% Famous Dave's of America, Inc. $3.65 $25 $31 NM NM NM NM 10.2x 12.6x 10.1x 0.3x 0.4x 0.4x 3.2% Luby's, Inc. $2.62 $76 $106 0.0x 0.0x 0.0x 0.0x 9.0x 0.0x 0.0x 0.3x 0.0x 0.0x 3.1% Red Robin Gourmet Burgers, Inc. $46.95 $607 $879 20.8x 17.5x 1.9x 1.6x 6.5x 6.4x 5.9x 0.7x 0.6x 0.6x 10.2% Ruby Tuesday, Inc. $2.37 $143 $309 0.0x 0.0x 0.0x 0.0x 8.3x 0.0x 0.0x 0.3x 0.0x 0.0x 4.1% Texas Roadhouse, Inc. $49.04 $3,487 $3,437 25.3x 22.9x 2.0x 1.8x 11.9x 11.6x 10.6x 1.6x 1.5x 1.4x 13.3% Mean $1,861 $2,284 16.4x 14.9x 1.2x 1.0x 9.1x 7.9x 7.3x 1.2x 1.2x 1.1x 13.2% Median $839 $2,137 19.2x 17.3x 1.3x 1.2x 9.0x 8.3x 7.9x 1.0x 1.0x 0.9x 12.8% 9

Public trading comparables, continued Quick Casual - Performance Issues Chipotle Mexican Grill, Inc. $279.45 $7,890 $7,341 41.7x 29.7x 2.7x 2.0x 17.8x 15.9x 12.5x 1.7x 1.6x 1.5x 9.4% El Pollo Loco Holdings, Inc. $10.10 $390 $469 16.4x 15.7x 1.2x 1.1x 7.6x 7.5x 7.2x 1.2x 1.2x 1.1x 15.5% Fiesta Restaurant Group, Inc. $16.75 $450 $508 NM 23.7x NM 1.8x 8.3x 7.1x 7.5x 0.7x 0.8x 0.8x 9.0% Noodles & Company $4.40 $181 $243 NM 107.3x NM 14.3x 15.4x 9.0x 7.6x 0.5x 0.5x 0.5x 3.3% Potbelly Corporation $11.90 $295 $274 38.6x 34.7x 1.9x 1.7x 7.0x 7.4x 6.9x 0.7x 0.6x 0.6x 9.3% Mean $1,841 $1,767 32.2x 42.2x 2.0x 4.2x 11.2x 9.4x 8.3x 1.0x 0.9x 0.9x 9.3% Median $390 $469 38.6x 29.7x 1.9x 1.8x 8.3x 7.5x 7.5x 0.7x 0.8x 0.8x 9.3% Quick Casual Bojangles', Inc. $12.15 $450 $604 15.5x 16.3x 1.2x 1.3x 8.2x 8.3x 8.7x 1.1x 1.1x 1.1x 13.7% Freshii Inc. $4.61 $142 $114 32.6x 19.3x 1.4x 0.8x 49.7x 15.5x 10.4x 6.9x 6.3x 4.7x 13.8% The Habit Restaurants, Inc. $9.20 $187 $183 62.9x 85.6x 2.5x 3.4x 6.4x 6.5x 5.9x 0.6x 0.6x 0.5x 8.9% Panera Bread Company $0.00 $0 $0 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 14.9% Shake Shack Inc. $38.35 $1,005 $983 74.0x 69.2x 3.0x 2.8x 18.2x 17.2x 14.2x 2.9x 2.8x 2.1x 16.0% Wingstop Inc. $38.10 $1,109 $1,244 52.2x 47.9x 2.7x 2.5x 34.3x 30.8x 26.0x 12.2x 11.9x 10.7x 35.6% Zoe's Kitchen, Inc. $12.50 $244 $282 NM NM NM NM 12.3x 13.3x 10.3x 0.9x 0.9x 0.8x 7.5% Mean $448 $487 39.5x 39.7x 1.8x 1.8x 18.5x 13.1x 10.8x 3.5x 3.4x 2.8x 15.8% Median $244 $282 42.4x 33.6x 2.0x 1.9x 12.3x 13.3x 10.3x 1.1x 1.1x 1.1x 13.8% Quick Service Arcos Dorados Holdings Inc. $10.25 $2,163 $2,557 25.5x 24.2x 1.2x 1.1x 9.8x 8.9x 8.4x 0.8x 0.8x 0.7x 8.0% Carrols Restaurant Group, Inc. $10.90 $386 $624 72.7x 45.3x 3.6x 2.3x 7.7x 7.2x 6.6x 0.6x 0.6x 0.5x 7.8% Del Taco Restaurants, Inc. $12.14 $470 $626 22.0x 20.2x 1.4x 1.3x 9.4x 8.8x 8.2x 1.3x 1.3x 1.2x 14.1% Domino's Pizza, Inc. $173.33 $7,583 $10,682 30.0x 25.1x 1.7x 1.5x 20.2x 19.0x 16.7x 3.9x 3.8x 3.4x 19.5% Jack in the Box Inc. $99.99 $2,942 $4,120 23.6x 20.2x 1.7x 1.5x 11.8x 11.5x 11.4x 2.6x 2.7x 3.0x 21.7% McDonald's Corporation $165.59 $132,006 $157,953 25.4x 23.7x 2.6x 2.4x 16.2x 15.3x 15.3x 6.7x 7.0x 7.7x 40.9% Nathan's Famous, Inc. $95.00 $398 $468 0.0x 0.0x 0.0x 0.0x 16.7x 0.0x 0.0x 4.6x 0.0x 0.0x 27.5% Papa John's International, Inc. $59.53 $2,086 $2,465 21.8x 20.1x 1.7x 1.5x 12.4x 12.3x 11.7x 1.4x 1.4x 1.3x 11.4% Papa Murphy's Holdings, Inc. $5.70 $97 $196 21.9x 22.8x 2.7x 2.9x 13.9x 10.2x 9.3x 1.6x 1.7x 2.0x 11.4% Restaurant Brands International Inc. $65.12 $15,468 $28,980 32.6x 24.5x 1.9x 1.4x 14.5x 13.6x 12.4x 6.5x 6.3x 5.8x 44.6% Sonic Corp. $24.11 $970 $1,596 18.8x 17.2x 1.2x 1.1x 10.6x 10.5x 10.3x 3.3x 3.5x 3.5x 31.5% The Wendy's Company $14.50 $3,512 $6,051 33.1x 26.6x 2.6x 2.1x 15.5x 14.9x 13.7x 4.9x 4.9x 4.8x 31.2% Yum! Brands, Inc. $79.59 $26,821 $35,688 28.4x 25.1x 2.2x 2.0x 17.4x 17.3x 17.3x 5.8x 6.1x 7.5x 33.1% Mean $14,992 $19,385 27.4x 22.7x 1.9x 1.6x 13.5x 11.5x 10.9x 3.4x 3.1x 3.2x 23.3% Median $2,163 $2,557 25.4x 23.7x 1.7x 1.5x 13.9x 11.5x 11.4x 3.3x 2.7x 3.0x 21.7% Snacks & Beverages Dunkin' Brands Group, Inc. $56.54 $5,107 $7,261 23.3x 21.4x 1.8x 1.7x 15.1x 15.0x 14.6x 8.6x 8.5x 8.3x 54.8% JMBA Jamba, Inc. $7.96 $122 $108 15.3x 0.0x 0.0x 0.0x NM 0.0x 0.0x 1.3x 0.0x 0.0x -4.4% SBUX Starbucks Corporation $57.04 $81,658 $82,907 26.9x 23.8x 1.7x 1.5x 15.4x 15.0x 13.4x 3.7x 3.6x 3.3x 22.2% Mean $28,962 $30,092 21.8x 15.1x 1.2x 1.1x 15.3x 10.0x 9.3x 4.5x 4.0x 3.9x 24.2% Median $5,107 $7,261 23.3x 21.4x 1.7x 1.5x 15.3x 15.0x 13.4x 3.7x 3.6x 3.3x 22.2% 10

Valuation can be driven by the composition of the system COMPARABLES BY FRANCHISE STATUS EBITDA Price Equity Enterprise P/E P/E/G EV / EBITDA EV / Revenue Margin Name 11/10/17 Value Value CY17 CY18 CY17 CY18 LTM CY17 CY18 LTM CY17 CY18 LTM Highly Franchised (>70%) Denny's Corporation $12.30 $803 $1,097 22.5x 20.3x 0.0x 0.0x 11.8x 10.8x 10.4x 2.1x 2.1x 2.0x 17.7% DineEquity, Inc. $46.63 $839 $2,137 11.3x 11.3x 0.0x 0.0x 9.5x 10.1x 10.4x 3.5x 3.5x 3.6x 36.7% Dunkin' Brands Group, Inc. $56.54 $5,107 $7,261 23.3x 21.4x 1.8x 1.7x 15.1x 15.0x 14.6x 8.6x 8.5x 8.3x 54.8% Domino's Pizza, Inc. $173.33 $7,583 $10,682 30.0x 25.1x 1.7x 1.5x 20.2x 19.0x 16.7x 3.9x 3.8x 3.4x 19.5% Jack in the Box Inc. $99.99 $2,942 $4,120 23.6x 20.2x 1.7x 1.5x 11.8x 11.5x 11.4x 2.6x 2.7x 3.0x 21.7% McDonald's Corporation $165.59 $132,006 $157,953 25.4x 23.7x 2.6x 2.4x 16.2x 15.3x 15.3x 6.7x 7.0x 7.7x 40.9% Papa John's International, Inc. $59.53 $2,086 $2,465 21.8x 20.1x 1.7x 1.5x 12.4x 12.3x 11.7x 1.4x 1.4x 1.3x 11.4% Restaurant Brands International Inc. $65.12 $15,468 $28,980 32.6x 24.5x 1.9x 1.4x 14.5x 13.6x 12.4x 6.5x 6.3x 5.8x 44.6% Sonic Corp. $24.11 $970 $1,596 18.8x 17.2x 1.2x 1.1x 10.6x 10.5x 10.3x 3.3x 3.5x 3.5x 31.5% The Wendy's Company $14.50 $3,512 $6,051 33.1x 26.6x 2.6x 2.1x 15.5x 14.9x 13.7x 4.9x 4.9x 4.8x 31.2% Mean $17,132 $22,234 24.2x 21.0x 1.5x 1.3x 13.8x 13.3x 12.7x 4.4x 4.4x 4.3x 31.0% Median $3,227 $5,085 23.5x 20.8x 1.7x 1.5x 13.4x 13.0x 12.1x 3.7x 3.7x 3.5x 31.3% Moderately Franchised (30% - 70%) Buffalo Wild Wings, Inc. $118.85 $1,844 $2,237 23.9x 21.5x 1.5x 1.3x 8.7x 8.3x 7.9x 1.1x 1.1x 1.1x 12.8% Brinker International, Inc. $33.74 $1,562 $2,916 10.7x 10.2x 0.7x 0.7x 6.8x 6.9x 6.8x 0.9x 0.9x 0.9x 13.7% Panera Bread Company $0.00 $0 $0 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 14.9% Mean $1,135 $1,718 11.5x 10.6x 0.7x 0.7x 5.2x 5.0x 4.9x 0.7x 0.7x 0.7x 13.8% Median $1,562 $2,237 10.7x 10.2x 0.7x 0.7x 6.8x 6.9x 6.8x 0.9x 0.9x 0.9x 13.7% Minimally Franchised (<30%) Bloomin' Brands, Inc. $16.98 $1,550 $2,666 12.7x 12.3x 1.1x 1.1x 6.9x 6.5x 6.6x 0.6x 0.6x 0.6x 9.4% BJ's Restaurants, Inc. $31.20 $644 $809 22.6x 19.9x 1.4x 1.3x 6.9x 7.5x 6.7x 0.8x 0.8x 0.8x 11.3% The Cheesecake Factory Incorporated $44.31 $1,966 $2,090 17.1x 16.7x 1.3x 1.3x 7.8x 8.2x 8.0x 0.9x 0.9x 0.9x 11.8% Cracker Barrel Old Country Store, Inc. $154.64 $3,726 $3,972 18.6x 17.0x 2.9x 2.6x 9.9x 10.0x 9.0x 1.4x 1.3x 1.3x 13.7% Darden Restaurants, Inc. $82.64 $10,220 $11,010 19.7x 17.9x 2.1x 1.9x 11.3x 10.6x 9.6x 1.5x 1.4x 1.3x 13.2% Dave & Buster's Entertainment, Inc. $48.84 $2,007 $2,288 18.7x 16.9x 1.2x 1.1x 8.7x 8.3x 7.4x 2.1x 2.0x 1.7x 24.4% Red Robin Gourmet Burgers, Inc. $46.95 $607 $879 20.8x 17.5x 1.9x 1.6x 6.5x 6.4x 5.9x 0.7x 0.6x 0.6x 10.2% Ruby Tuesday, Inc. $2.37 $143 $309 0.0x 0.0x 0.0x 0.0x 8.3x 0.0x 0.0x 0.3x 0.0x 0.0x 4.1% Texas Roadhouse, Inc. $49.04 $3,487 $3,437 25.3x 22.9x 2.0x 1.8x 11.9x 11.6x 10.6x 1.6x 1.5x 1.4x 13.3% Mean $2,706 $3,051 17.3x 15.7x 1.5x 1.4x 8.7x 7.7x 7.1x 1.1x 1.0x 1.0x 12.4% Median $1,966 $2,288 18.7x 17.0x 1.4x 1.3x 8.3x 8.2x 7.4x 0.9x 0.9x 0.9x 11.8% 11

Since January 1, 2017, there have been 415 announced M&A transactions in the restaurant industry with a total reported value of over $21 billion ($ in millions) Ann. Service Type Ent. Value / LTM EBITDA Date Target Buyer(s) Primary Secondary Txn. Value LTM Rev. LTM EBITDA Margin 9/29/14/ Einstein Noah Restaurant Group JAB Beech Inc. / BDT Capital Partners Limited Service Fast Casual $473.6 1.10x 10.1x NA 4/5/17 Panera Bread Company JAB Holdings B.V. Limited Service Fast Casual $7,698.8 2.72x 18.7x 14.5% 4/4/17 Guckenheimer Services, LLC ISS A/S (CPSE:ISS) Limited Service Fast Casual $225.0 0.69x 15.9x NA 9/6/16 CICI Enterprises, LP Arlon Group LLC Limited Service Fast Casual 12/15/15 Togo's Eateries, Inc. Nimes Capital, LLC Limited Service Fast Casual NA NA 7.5x NA 7/7/15 Fazoli's System Management, LLC Sentinel Capital Partners, LLC Limited Service Fast Casual NA NA 6.0x NA 6/4/15 Biglari Holdings Inc. (NYSE:BH) Biglari Capital Corp. Limited Service Fast Casual $258.9 1.18x 20.2x 5.8% 7/1/14 Portillo's Hot Dogs Berkshire Partners Limited Service Fast Casual $1,000.0 NA 13.0x NA 3/25/14 Newk's Eatery Sentinel Capital Partners Limited Service Fast Casual NA NA 13.0x NA 1/16/14 CEC Entertainment Inc. Apollo Global Management, LLC (NYSE:APO) Limited Service Fast Casual $1,329.5 1.59x 7.9x 20.1% 2/21/17 Popeyes Louisiana Kitchen, Inc. Restaurant Brands International Inc. (NYSE:QSR) Limited Service QSR $1,827.1 6.75x 20.5x 33.0% 1/9/17 McDonald's China Management Carlyle Group, Citic Capital, Golden Arches Limited Service QSR 12/20/16 K-MAC Holdings Corp. Lee Equity Partners Limited Service QSR 10/26/16 Pacific Island Restaurants, Inc. Restaurant Brands New Zealand Limited Limited Service QSR 5/25/16 Kahala Brands, Ltd. MTY Food Group Inc. (TSX:MTY) Limited Service QSR $339.9 2.43x 10.4x 23.4% 5/9/16 Krispy Kreme Doughnuts, Inc. JAB Holdings Limited Service QSR $1,348.3 2.52x 18.1x 14.0% 12/7/15 Keurig Green Mountain, Inc. JAB Holdings, Mondelez International and BDT Limited Service QSR $14,261.4 3.20x 13.8x NA 12/2/15 Taco Bueno Restaurants, L.P. TPG Growth Limited Service QSR $185.0 NA 8.3x NA 5/26/15 Jack's Family Restaurants Onex Corporation Limited Service QSR $640.0 NA 12.0x NA 3/12/15 Del Taco Holdings, Inc. Levy Acquisition Corp Limited Service QSR $500.0 1.20x 8.3x NA 1/14/15 Brazil Fast Food Corp. - Limited Service QSR $36.6 1.20x 8.1x 14.8% 9/12/14 9 Papa Murphy's Franchises Papa Murphy's Limited Service QSR $3.4 NA 6.1x NA 8/26/14 Tim Hortons Inc. Burger King Worldwide Inc. Limited Service QSR $11,542.7 3.90x 15.2x NA 6/16/14 56 Wendy's Units NPC International Limited Service QSR $58.1 0.80x 6.0x NA 3/31/14 Morgan's Foods Inc. Apex Restaurant Management, Inc Limited Service QSR $52.6 0.58x 7.7x 7.6% 1/24/14 Checkers Drive-In Restaurants, Inc. Sentinel Capital Partners Limited Service QSR NA NA 7.5x NA 1/9/14 PJ United, Inc. TPG Growth Limited Service QSR $123.0 NA 7.5x NA 11/19/13 CKE Restaurants Roark Capital Group Limited Service QSR $1,700.0 1.30x 8.3x NA 10/3/13 Protein Bar Catterton Partners Limited Service QSR $29.0 NA 14.0x NA 5/20/14 Flynn Restaurant Group (Applebee's / Taco Ontario Teachers' Pension Plan Limited Service / Casual Dining / $1,400.0 1.00x 7.6x NA 2/6/13 Ark Restaurants Corp. (NasdaqGM:ARKR) Landry's, Inc. Limited Service / Fine Dining / $77.0 0.52x 5.3x 10.0% 10/16/17 Ruby Tuesday, Inc. (NYSE:RT) NRD Capital Management, LLC Full Service Casual Dining $362.0 0.40x 9.8x 4.1% 8/24/17 Ninety Nine Restaurant, Inc. J. Alexander's LLC Full Service Casual Dining $199.0 0.66x 6.6x 9.9% 3/27/17 Cheddar's Casual Cafe, Inc. Darden Restaurants, Inc. (NYSE:DRI) Full Service Casual Dining $780.0 NA 10.4x NA 1/24/17 Bob Evans Farms, LLC Golden Gate Capital Full Service Casual Dining 10/10/16 Red Lobster Master Holdings, L.P. Thai Union Group Public Company Limited Full Service Casual Dining $575.0 0.51x 8.8x 5.8% 7/23/15 Z'Tejas, Inc. Cornbread Ventures, LP Full Service Casual Dining $3.8 0.11x 7.3x 1.5% 6/25/15 PEPPER DINING, INC. Brinker International, Inc. (NYSE:EAT) Full Service Casual Dining $106.5 0.40x 6.5x NA 5/22/15 Frisch's Restaurants, Inc. NRD Capital Management, LLC Full Service Casual Dining $177.4 0.80x 7.3x 10.9% 5/15/15 18 Buffalo Wild Wings Locations Diversified Restaurant Holdings Full Service Casual Dining $53.7 1.40x 6.8x NA 5/20/14 TGI Friday's Inc. Sentinel Capital Partners, L.L.C.; Tri-Artisan Capital Full Service Casual Dining $800.0 NA 7.5x NA 5/15/14 Red Lobster Seafood Co., LLC Golden Gate Capital Full Service Casual Dining $2,113.0 0.85x 9.2x 9.2% 4/24/14 On the Border Mexican Grill & Cantina Argonne Capital Group / Fortress Investment Full Service Casual Dining $160.1 0.50x 5.5x NA 3/18/14 Mexican Restaurants, Inc. Williston Holding Company, Inc. (OTCPK:WHCA) Full Service Casual Dining $2.8 0.25x 4.9x 5.1% 3/13/14 Furr's Restaurant Group, Inc. Chatham Credit Management III, LLC Full Service Casual Dining $22.7 0.20x 8.4x 2.4% 7/22/13 Miller's Ale House, Inc. Roark Capital Group Full Service Casual Dining $310.0 NA 9.3x NA 6/4/13 Mastro`s Restaurants LLC Landry's, Inc. Full Service Fine Dining $220.0 NA 10.0x NA 2/1/17 TAO Group LLC The Madison Square Garden Company Full Service Fine Dining $400.0 1.70x 9.3x NA 12

Below is an illustrative valuation summary, referred to as a Football Field, that investors use to help determine valuation The intersection of the four commonly-used methodologies implies a range of values for the investment firm to consider ($ in millions) Valuation Valuation Valuation Parameters Company Implied Value Methodology Metric Range Statistic Low High Implied Valuation Range Trading Comparables EV / NTM EBITDA 10.0x - 12.0x $5.6 $55.9 - $67.0 Transaction Comparables EV / NTM EBITDA 9.5x - 11.5x $5.6 $53.1 - $64.2 Discounted Cash Flow (a) Projections & Year 5 EBITDA 7.5x - 9.5x $4.0 $47.5 - $55.4 LBO Scenario Projections Modeled to a Target IRR 20% - 30% $4.0 $35.6 - $43.5 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 $55.0 $60.0 $65.0 $70.0 $75.0 Notes: (a) Assumes a discount range to yield a present value of future cashflows 13

Contact Information Jason Bedasse Partner jason@birddogcapitalgroup.com (404) 719-2975 Jake LaJoie Partner jake@birddogcapitalgroup.com (404) 909-7657 Dan Lonergan Partner dan@birddogcapitalgroup.com (770) 490-8391 www.birddogcapitalgroup.com Chad Magee Partner chad@birddogcapitalgroup.com (917) 575-7276 14