1. Restaurant I

2. Restaurant II.

1. The owner of the Property wants a store committed to maintaining the location. which restaurant spent more on upgrading and maintaining its existing store base on a per square foot basis in 2021?

2. Should it concern you as a landlord that Restaurant I was the subject of an SEC investigation in 2020? Why or why not?

3.Why did labor costs, as a percentage of sales, decrease at Restaurant I in 2021 vs. 2020 even though the restaurants were closed during Covid?

4. What are the sales per square foot that the average Restaurant I generates for 2021 ?

5. What are the sales per square foot that the average Restaurant II generates for 2021?

6. What restaurant has a higher profit margin on food sales? Why?

7. Why does Restaurant II have higher overall EBITDA margins in 2021 despite the lower food margins?

8. For 2021, what did Restaurant I spend on rent per store? Rent/sf?

9. For 2021, what did Restaurant II. spend on rent per store? Rent/sf?

10. Based on Q8 and Q9, what restaurant is more likely to have locations near high-end malls?

11. What restaurant likely caters to more business customers? Why do you think that is the case?

12. What restaurant has to worry more about menu price increases and why?

13. Restaurant II credit agreement has the Financial Covenants

(a) Adjusted EBITDA to Interest and Rent Ratio. Restaurant II shall not permit the Lease Adjusted EBITDA to Interest and Rent Ratio for any Computation Period to be less than 2.0 to 1.0. What is the ratio for 2021 for Texas Roadhouse and is it in compliance?

(b) Leverage Ratio. Restaurant II shall not permit the Leverage Ratio as of the last day of any Computation Period to exceed 1.25 to 1.0. Leverage Ratio means, as of the last day of any Computation Period, the ratio of (a) Adjusted Debt to (b) Lease Adjusted EBITDA for the Computation Period ended on such date. What is the ratio for 2021 for Restaurant II and is it in compliance?

14. what restaurant do you recommend as a tenant?

1) please use financial ratios and the information in the case.

2) Restaurant I prefer the location and can pay 10% more rent for it.

Balance Sheet Balance Sheet as of: Cash Flow For the Fiscal Period Ending Income Statement For the Fiscal Period Ending Balance Sheet Balance Sheet as of: For the Fiscal Period Ending Income Statement Balance Sheet Balance Sheet as of: Cash Flow For the Fiscal Period Ending Income Statement For the Fiscal Period Ending Balance Sheet Balance Sheet as of: For the Fiscal Period Ending Income Statement