Why M&A is Hot Again

Because the restaurant business is a relatively safe business, ie. it survives rough economic times as “everyone enjoys going out to dinner”, merger and acquisitions (M&A for short)have always went on. Now we have seen huge companies, like BurgerKing, swallowing up successful fast food chains, like Popeye’s, becoming all the rage in the industry. There are different opinions as to whether or not this is a positive or negative trend in this complicated and huge industry.

Key Takeaways:

• bigger restaurant chains are taking over and buying out smaller restaurant chains
• The restaurant business is a good business to invest in because there are always consumers despite the economy
• it is good for restaurants to buy smaller similar restaurants and implement the bigger restaurants ideas into the smaller restaurant

“Limited capital, real estate, and market share suggest that, like the rule of the jungle, the proven concepts will succeed, often at the expense of their competitors.”

Read more: https://www.qsrmagazine.com/finance/why-ma-hot-again