T.G.I. Friday's and Red Lobster have much in common: both are large restaurant chains, both embrace the casual-dining aspect of the business and both have agreed to be acquired by private equity firms—Sentinel Capital Partners and Golden Gate Capital, respectively. PE investments in restaurants worldwide are apparently sizzling right now, and the increase in acquisitions makes sense; after all, global consumer confidence is the highest it’s been in years.
But confidence in consumers’ disposable income isn’t enough to guarantee a good investment, so what else is contributing to PE investors’ enthusiasm for restaurants? To find out, click here.