Restaurant EBITDAR definition
Restaurant EBITDAR means the earnings before interest, taxes, depreciation, amortization, and rent/real property costs for the Covered Restaurants. EBITDAR is a measure of store-level cash flow that is commonly used in the restaurant industry. As is customary, it excludes expenses related to the acquisition or lease of real property (including all payments made under the real property leases for the Covered Restaurants), as well as all debt service costs, whether principal or interest. You should not interpret Restaurant EBITDAR as the amount of profit that the Covered Restaurants generate or that you are likely to generate from operating an Arby’s Restaurant because EBITDAR does not account for all costs and expenses that an Arby’s Restaurant will incur. In addition to the costs and expenses described above in this FPR as being excluded from the Restaurant EBITDAR calculation, this FPR does not include any amounts for the development fees and initial franchise fees that licensees pay us under the License Agreement or any compensation to the licensee’s owners.