At what enterprise value was CAFE RIO acquired in 2017?

During the acquisition of CAFE RIO by FREEMAN SPOGLI in 2017, the company was valued at an estimated revenue multiple of below 5x. The transaction's Enterprise Value is estimated to be in the range of 300M - 700M USD. By registering for free, you get access to complete and exact transaction details including enterprise value, revenue, and EBITDA. Additionally, our database shows that the Retail & Consumer industry currently tracks an average EBITDA multiple of 11.0x, providing a valuable benchmark for this transaction.

What was the EV/EBITDA of CAFE RIO when it was acquired by FREEMAN SPOGLI?

The estimated EV/EBITDA multiple for CAFE RIO is in the range of 10x - 18x. For comparison, the Retail & Consumer sector currently shows an average EBITDA multiple of 11.0x. Join our community for free to access full valuation data and industry trends.

When was CAFE RIO acquired by FREEMAN SPOGLI?

CAFE RIO was acquired by FREEMAN SPOGLI in 2017.

What was the revenue of CAFE RIO at the time of the deal?

The revenue of CAFE RIO at the time of the deal is estimated to be in the range of 100M - 200M USD. Register for free to access the full transaction report and exact valuation multiples.

What was the EBITDA of CAFE RIO during the acquisition?

CAFE RIO's EBITDA is estimated to be in the range of 10M - 30M USD. Join our community for free to access complete and exact deal data.

What is Enterprise Value (EV)?

Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.

What is the EV/EBITDA multiple and why is it used?

The EV/EBITDA multiple is a financial ratio that compares a company's Enterprise Value (EV) to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It is widely used in M&A and valuation because it allows for comparisons between companies with different capital structures and provides a clear view of operational profitability.

How is the data for the CAFE RIO acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the CAFE RIO deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://www.freemanspogli.com/news/freeman-spogli-co-acquires-a-majority-interest-in-cafe-rio-inc/

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Home Database Retail & ConsumerCAFE RIO

09/2017

CAFE RIO acquired by FREEMAN SPOGLI

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV 300M - 700M USD

Context

Freeman Spogli & Co. acquired Cafe Rio, Inc. from KarpReilly LLC, taking a majority interest in the fast-casual Mexican restaurant chain while existing management retained significant equity. The transaction marked Freeman Spogli's entry into the growing fast-casual segment, with Cafe Rio's leadership team continuing to guide operations from Salt Lake City headquarters. This deal made strategic sense as Cafe Rio's scratch-made Mexican cuisine and loyal customer base aligned perfectly with Freeman Spogli's successful restaurant investments including El Pollo Loco and other consumer concepts. Coming after KarpReilly's tenure that grew Cafe Rio from 6 Utah locations to over 100 restaurants across 11 states, the timing positioned the chain for accelerated expansion using Freeman Spogli's restaurant scaling expertise. Management emphasized leveraging the new partner's experience to enter additional markets while maintaining the company's culture of food quality and service excellence. The transaction highlighted private equity rotation in fast-casual dining, where proven growth stories attract strategic buyers seeking platform expansion opportunities.

CAFE RIO, which reported an EBITDA margin of LOGIN in 2016, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Retail & Consumer sector (11.0x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Cafe Rio, Inc. is a fast-casual Mexican restaurant chain founded in 1997 and headquartered in Salt Lake City, Utah, United States. The company serves authentic dishes inspired by recipes from Northern Mexico's Rio Grande region, Southern Texas, and New Mexico, using only the freshest ingredients prepared from scratch daily. Menu highlights include customizable burritos, handmade tortillas, fresh salads, tacos, and other Mexican favorites featuring various proteins, house-made sauces, and traditional cooking methods. Cafe Rio operates, in 2017, over 100 company-owned restaurants across 11 states. Cafe Rio's business model focuses on company-owned operations rather than franchising to ensure quality control and consistency across locations. Revenue comes primarily from restaurant sales with a focus on lunch and dinner dayparts. The company has demonstrated strong financial performance through organic expansion and operational excellence.

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REFERENCES

Valuation range: EV 300M - 700M USD

Revenue range: 100M - 200M USD

EBITDA range: 10M - 30M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of CAFE RIO by FREEMAN SPOGLI are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Target: cafe rio

Acquirer: freeman spogli