Applebee Case Study

EXHIBIT 1
Exhibit 1 provides the company description for Applebee’s, which includes industry
information and historical financial data.
Exhibit 1
Market Approach Case

Situation
Applebee’s International, Inc. (“Applebee’s) has engaged Deloitte Financial Advisory

Services LLP (“Deloitte FAS”) to assist in estimating the Fair Market Value of 100 percent of
the shareholders’ equity as of a current date (“Valuation Date”) on a non-marketable,
minority interest basis for internal tax planning purposes.
Applebee’s Company Overview1
Applebee’s® International, Inc., headquartered in Overland Park, Kansas, develops,

franchises and operates casual dining restaurants in 49 states, one US territory, and 16
international countries under the Applebee’s Neighborhood Grill & Bar® brand.
Each Applebee’s Neighborhood Grill & Bar is designed as an attractive, friendly,

neighborhood establishment featuring moderately priced, high-quality food and beverage
items, table service and a comfortable atmosphere that appeals to all ages. As "America’s
Favorite Neighbor®," each Applebee’s restaurant reflects its local neighborhood. The decor
conveys this theme with photographs and memorabilia highlighting hometown heroes, local
schools and area history.
Applebee’s Neighborhood Grill & Bar is the largest casual dining concept in America, both in
terms of number of restaurants and market share. As of Dec. 31, 2006, there were 1,930
Applebee’s Neighborhood Grill & Bar restaurants, of which 1,409 were operated by
franchisees and 521 were operated by the company.
The company’s common stock trades on The NASDAQ Global Select Market® under the
symbol APPB.
For the fiscal year ended December 2006, the company generated revenues of $1,338 milion,
an increase of 9.9% on the previous year. The company saw a net income of $81 million
during fiscal 2006, an decrease of -20.6% on fiscal 2005.
Financial performance
For the fiscal year ended December 31, 2006, total system-wide sales for the Applebee’s
brand, which includes both company and franchise restaurants, climbed 9.9 percent over the
prior year. Total company revenue for the year grew 9.4 percent to $1.3 billion. Net earnings
for fiscal 2006 were $81.0 million or -20.6 percent less than 2005. This is a disappointing
result and is the second time in a row in the company’s history that earnings failed to exceed
the prior year. Through 2006 year-end, Applebee’s has achieved system-wide comparable
sales growth for 30 consecutive quarters. Comparing restaurants open for at least 18 months,
system-wide comparable sales for 2006 increased 1.8 percent, with franchise restaurant
comparable sales growing 2.7 percent for the year and company comparable sales declining
0.9 percent a gap driven both by the timing of sales initiatives and the concentration of
company restaurants in the Midwest and Northeast, which have experienced economic
weakness.
1
Per Applebee’s website www.applebees.com
Exhibit 1
Structure of industry – Casual Dining

The casual dining segment primarily consists of full-service dinnerhouse restaurants that are
designed to appeal to a majority of people by featuring moderate prices and a comfortable
atmosphere. With an average check running between $10 and $20 per person, the largest
chains can expect nearly $3 million in sales at each of its restaurants. Most dinnerhouses are
loosely designed around a theme, such as T.G.I. Friday's Tiffany-lamp appointed pubs or P.F.
Chang's Asian-influenced bistros, which offers not only an interesting décor but also a means
to distinguish their dining spots from other restaurants.
Growth in the casual dining segment has been hurt in the past year primarily by rising fuel
prices, which has put a strain on most family budgets. While sales have started to rebound, the
sales crunch has forced some full-service operators to pull back on their expansion plans.
Most restaurant chains also invest substantial amounts of time and money on product
development to try and lure more customers with new menu items.
Casual dining chains in the US include:
• Applebee's
• Bahama Breeze
• Bennigan's
• Bob Evans
• Buca di Beppo
• Carrabba's Italian Grill
• The Cheesecake Factory
• Chi-Chi's
• Chili's
• Cracker Barrel Old Country Store
• Damon's
• Don Pablo's
• Down Under Steakhouse
• Hops
• Logan's Roadhouse
• Lone Star Steakhouse
• Morton's of Chicago Steakhouse
• O'Charley's
• Olive Garden
• On The Border
• Outback Steakhouse
• P.F. Chang's China Bistro
• Red Lobster
• Romano's Macaroni Grill
• Ruby Tuesday's
• Smokey Bones BBQ
• Stoney River Legendary Steaks
• TGI Friday's
Future Expectations
Market Size
Over the past decade, the rise in the number of double-income families has spurred
commercial restaurant sales, with increases in food eaten on-premise and ordered for
carryout, drive-through or delivery. Despite the recession beginning in 2001, the intensely
competitive restaurant industry maintained steady growth with no down years. The restaurant
Exhibit 1
industry is typically the top performing sector exiting a recession, with the economic
downturn in the early 2000’s being no exception. In 2004, restaurant revenues totaled $470
billion based on growth of 5.4 percent per year in the 1999-2004 period. In the previous five-
year period (1994-1999), annual growth averaged 4.5 percent. In 2004, away-from-home, or
restaurant sales, accounted for 46.8 percent of the food dollar in the US, up from 46.4 percent
in 1999. In addition, over the past decade, growth in consumer food expenditures has
significantly outpaced population growth in part due to a shift in the food product mix toward
higher value products, especially convenience items. In addition, as an outgrowth of
consumer demands for convenience of all types, dining out has become more routine and is
viewed as a social activity and no longer as a special occasion.
Source: The Freedonia Group, Inc.
Market Environment
A number of factors impact the US restaurant industry, although most are beyond the direct
control of restaurant operators. The health of the overall economy, as well as personal
consumption expenditures and disposable personal income are major factors. These factors
influence how much consumers are willing to spend on commercially prepared meals, the
frequency of dining away from home and the types of restaurants frequented.
Population patterns also have major effects on consumer spending, including restaurant
expenditures. Favorable growth in mature population segments influences the overall
restaurant revenue level and which eating and drinking places will benefit. Older population
segments are more affluent than younger consumers and are willing to pay for the
convenience of restaurant foods. The outlook for restaurants is also affected by changing
dietary patterns and consumer lifestyles (i.e., many people working longer hours and having
busier schedules, which allows for less time to prepare meals).
Establishment Forecasts
Restaurant revenues are forecast to reach $590 billion in 2009 based on growth of 4.7 percent
per year in the 2004-2009 period. Gains will be stimulated by the rising proportion of food
expenditures on food away-from-home as consumers will be willing to pay for convenient,
ready-to-eat offerings that provide different choices than what is typically prepared at home.
In 2009, away-from-home food expenditures are expected to account for 47.2 percent of
consumer food expenditures, which is up 0.2 percent from 2004. Moreover, the availability of
prepared foods from supermarkets and other retail stores, along with increased takeout
offerings from full service restaurants, is a response to consumer demands for increased
Exhibit 1
convenience and will provide further avenues of growth in the away-from-home food
segment.
Full Service Restaurants
Full service restaurant revenues are projected to reach $210 billion in 2009 based on annual
increases of 4.9 percent from 2004. These above-average advances will be due to consumers
continuing to view dining out as a social activity that is not limited to special occasions. The
willingness to pay for the convenience of prepared foods featuring flavors, cuisines and
presentations that are more difficult to achieve at home will stimulate business in full service
restaurants, as will rebounds in domestic and international tourism. Growth in the number of
establishments will trail revenue gains, with the number of full service restaurants reaching
209,000 in 2009 based on expansion of 0.9 percent per year from 2004.
• The fastest revenue growth is expected in the casual dining segment based on favorable
gains in disposable personal income and the combination of convenience and value
provided by such establishments. Moreover, the rapid expansion of upscale casual dining
chain restaurants, which have greater economies of scale and marketing clout than
independents, will boost revenues in the segment. The rising popularity of takeout meals
from full service restaurants and the increased promotion of this option will be another
avenue of revenue growth in this segment as time-pressed consumers seek the
convenience of restaurant foods for offsite consumption.
Top Competitors
Industry competition is currently considered medium. Although there are several large
industry participants, no one company dominates the market. The following companies are
the major competitors of Applebee’s:
• BUCA, Inc.
• Shoney’s Restaurants Inc.
• Darden Restaurants, Inc.
• McDonald’s Corporation
• Wendy’s International, Inc.
• Denny’s Corporation
• Brinker International
• CBRL Group
• Jack in the Box Inc.
• OSI Restaurant Partners, Inc.
• CKE Restaurants
• Lone Star Steakhouse & Saloon, Inc.
• Ruby Tuesday, Inc.
• Cheesecake Factory Incorporated, The
• O Charley’s Inc
• RARE Hospitality International, Inc.
• VICORP Restaurants, Inc.
• Benihana Inc.
• Silver Diner, Inc.
• Applebee’s International, Inc.
Exhibit II, Page 1 of 3 Exhibit 1
Deloitte Learning Initiative
Applebees
Business Valuation
Historical Financial Statement
Valuation as of December 31, 2006
($ Million's)
BALANCE SHEETS
Fiscal Years Ended LTM as of
ASSETS 2004 2005 2006 9/24/2006

Current Assets
Cash and Equivalents $ 10.9 1.4% $ 13.3 1.5% $ 22.6 2.4% $ 10.1 1.1%
Accounts Receivable 41.7 5.5% 39.6 4.5% 48.2 5.2% 37.4 4.2%
Inventories 35.9 4.8% 20.4 2.3% 11.5 1.2% 10.4 1.2%
Other Current Assets 12.2 1.6% 17.0 1.9% 23.0 2.5% 19.6 2.2%
Total Current Assets 100.7 13.3% 90.3 10.3% 105.3 11.3% 77.5 8.7%
Property, Plant & Equipment

Gross Property, Plant & Equipment 723.8 95.9% 868.8 98.9% 954.5 102.0% NA NA
Accumulated Depreciation (237.2) -31.4% (278.2) -31.7% (318.5) -34.0% NA NA
Net Property, Plant & Equipment 486.6 64.5% 590.6 67.2% 636.0 68.0% 621.0 69.5%
Non-Current Assets
Intangible Assets 130.7 17.3% 153.0 17.4% 152.2 16.3% 145.7 16.3%
Other Non-Current Assets 36.5 4.8% 44.7 5.1% 42.0 4.5% 49.8 5.6%
Total Non-Current Assets 167.2 22.2% 197.7 22.5% 194.2 20.8% 195.5 21.9%
TOTAL ASSETS: $ 754.5 100.0% $ 878.6 100.0% $ 935.5 100.0% $ 894.0 100.0%
LIABILITIES & CAPITAL

Current Liabilities
Long-Term Debt Due in One Year $ 0.2 0.0% $ 8.2 0.9% $ 0.3 0.0% $ 10.3 1.2%
Accounts Payable 42.8 5.7% 63.4 7.2% 43.2 4.6% 38.0 4.3%
Income Taxes Payable 2.6 0.3% - 0.0% 7.4 0.8% 4.0 0.4%
Other Current Liabilities 106.1 14.1% 126.1 14.4% 136.0 14.5% 90.4 10.1%
Total Current Liabilities 151.7 20.1% 197.7 22.5% 186.9 20.0% 142.7 16.0%
Non-Current Liabilities
Long-Term Debt 35.5 4.7% 180.2 20.5% 174.9 18.7% 184.0 20.6%
Other Non Current Liabilities 41.5 5.5% 50.4 5.7% 61.9 6.6% 60.4 6.8%
Deferred Taxes & ITC 29.0 3.8% 37.7 4.3% 25.1 2.7% 27.8 3.1%
Minority Interest - 0.0% - 0.0% - 0.0% - 0.0%
Total Non-Current Liabilities 106.0 14.1% 268.3 30.5% 261.9 28.0% 272.2 30.4%
TOTAL LIABILITIES 257.7 34.2% 466.0 53.0% 448.8 48.0% 414.9 46.4%
Stockholders' Equity
Preferred Stock - 0.0% - 0.0% - 0.0% - 0.0%
Common Equity 496.7 65.8% 412.6 47.0% 486.7 52.0% 479.1 53.6%
Common Stock - 0.0% - 0.0% - 0.0% - 0.0%
Capital Surplus - 0.0% - 0.0% - 0.0% - 0.0%
Retained Earnings - 0.0% - 0.0% - 0.0% - 0.0%
Treasury Stock - 0.0% - 0.0% - 0.0% - 0.0%
TOTAL STOCKHOLDERS' EQUITY 496.7 65.8% 412.6 47.0% 486.7 52.0% 479.1 53.6%
TOTAL LIABILITIES & CAPITAL $ 754.4 100.0% $ 878.6 100.0% $ 935.5 100.0% $ 894.0 100.0%
Source Notes:
[S1] Source
C:\Documents and Settings\nscerbo\Desktop\Learning Initiative\Learning Initiative Cap IQ Final Model_unlinked_edited data 2.xls
Applebees
Business Valuation
($ Million's)
INCOME STATEMENTS [D1]
2004 2005 2006 9/24/2006
Net Sales $ 1,111.6 100.0% $ 1,216.7 100.0% $ 1,337.9 100.0% $ 1,296.1 100.0%
Cost of Goods Sold 833.8 75.0% 937.6 77.1% 1,048.9 78.4% 1,016.0 78.4%
GROSS PROFIT 277.8 25.0% 279.1 22.9% 289.0 21.6% 280.1 21.6%
Operating Expenses
Research & Development - 0.0% - 0.0% - 0.0% - 0.0%
Sales & Marketing - 0.0% - 0.0% - 0.0% - 0.0%
General & Administrative 103.8 9.3% 107.5 8.8% 120.0 9.0% 116.3 9.0%
Other Operating Expenses (42.0) -3.8% (47.6) -3.9% (38.7) -2.9% (43.7) -3.4%
EBITDA [D2] 216.0 19.4% 219.2 18.0% 207.7 15.5% 207.5 16.0%
Depreciation and Amortization 46.7 4.2% 55.5 4.6% 65.5 4.9% 63.7 4.9%
EBIT [D3] 169.3 15.2% 163.7 13.5% 142.2 10.6% 143.8 11.1%
Net Interest Expense/(Income) 0.3 0.0% 2.7 0.2% 8.7 0.7% 8.6 0.7%
Non-Operating Expense/(Income) (1.4) -0.1% (1.8) -0.1% - 0.0% (0.7) -0.1%
Non-Recurring Expense/(Income) 1.9 0.2% 6.0 0.5% 11.4 0.9% 10.4 0.8%
EBT [D4] 168.5 15.2% 156.8 12.9% 122.1 9.1% 125.5 9.7%
Income Taxes 57.6 5.2% 54.7 4.5% 41.2 3.1% 42.3 3.3%
NET INCOME $ 110.9 10.0% $ 102.1 8.4% $ 80.9 6.0% $ 83.2 6.4%
SUPPLEMENTAL DATA:
CAPITAL EXPENDITURES $ 104.6 $ 139.4 $ 122.9 $ 125.2

As a % of Revenues 9% 11% 9% 10%
MARGIN SUMMARY:
GROSS MARGIN [D5] 25% 23% 22% 22%
OPERATING MARGIN [D6] 15% 13% 11% 11%
NET MARGIN [D7] 10% 8% 6% 6%
Definitions:
[D1] LTM = Last Twelve Months

[D2] EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization
[D3] EBIT = Earnings Before Interest and Taxes
[D4] EBT = Earnings Before Taxes
[D5] Gross Margin = Gross Profit/Net Sales
[D6] Operating Margin = EBIT/Net Sales
[D7] Net Margin = Net Income/Net Sales
Source Notes:
[S1] Source
Applebees
Business Valuation
RATIO ANALYSIS
2004 2005 2006 9/24/2006

LIQUIDITY ANALYSIS
Current ratio 0.7 0.5 0.6 0.5
Quick ratio 0.3 0.3 0.4 0.3
Operating working capital (51.0) (107.4) (81.6) (65.2)
OWC/sales -5% -9% -6% -5%
Days receivables 14 12 13 11
Days inventory 16 8 4 4
Days payable 19 25 15 14
Trade cycle 11 (5) 2 1
LEVERAGE ANALYSIS
Net fixed assets/total capital 0.91 0.98 0.96 0.92
Long term debt/equity 0.07 0.44 0.36 0.38
Long term debt/total capital 0.07 0.30 0.26 0.28
Long term debt/assets 0.05 0.21 0.19 0.21
DEBT COVERAGE ANALYSIS

Interest coverage 564.33 60.63 16.34 16.72
OPERATING ANALYSIS
Net fixed asset turnover 2.28 2.06 2.10 2.09
Return on average assets 15% 6% 5% 5%
Return on equity [F1] 22% 25% 17% 17%
Net Income/EBT 66% 65% 66% 66%
EBT/EBIT 100% 96% 86% 87%
EBIT/Sales 15% 14% 11% 11%
Sales/Assets 1.5 1.4 1.4 1.5
Assets/Equity 1.5 2.1 1.9 1.9
EBITDA/Sales 0.194 0.18 0.155 0.16
Source Notes:
[S1] Source
Footnotes:
[F1] Calculated on a book basis.
EXHIBIT 2
Exhibit 2 provides some Capital IQ Company Screening Reports for potential

guideline companies.
Exhibit 2
Confidential
Capital IQ Company Screening Report

Screening Criteria
1 Industry Classification: Full Service Restaurants OR Fast-Food Restaurants OR Tea and
Coffee Shops
2 Geographic Location: United States of America
3 Total Revenue ($mm) [LTM]: is greater than 500 (Unreported data set to 0)
McDonald's Corp. (NYSE:MCD)

Industry Classification: Fast-Food Restaurants
Geographic Location: United States of America
Primary Industry: Restaurants
Security Tickers: NYSE:MCD, BASE:MCD, BMV:MCD *, BVL:MCD, DB:MDO, ENXTPA:MA, SEAQ:MCD,
SWX:MCD
Business Description: McDonald’s Corporation operates as a foodservice retailer worldwide. It operates and
franchises McDonald’s restaurants, which offer various food items, and soft drinks and other
beverages. The company also operates Boston Market, a home-meal replacement concept;
and has a minority interest in the U.K.-based Pret A Manger, a quick-service food concept. As
of December 31, 2006, it operated approximately 31,045 restaurants in 118 countries. The
company has a strategic alliance with Sinopec to co-develop drive-thru restaurants in the
People's Republic of China. McDonald’s Corporation was founded in 1948 and is based in
Oak Brook, Illinois.
EBITDA ($mm) [LTM]: 6,282.0
Total Revenue ($mm) [LTM]: 22,136.6
Competitors: BAB, Inc. (OTCBB:BABB), Back Yard Burgers Inc. (NasdaqSC:BYBI), Burger King
Corporation (NYSE:BKC), Carrols Restaurant Group, Inc. (NasdaqNM:TAST), CKE
Restaurants Inc. (NYSE:CKR), Jack in the Box Inc. (NYSE:JBX), Meritage Hospitality Group
Inc. (OTCPK:MHGU), Tim Hortons Inc. (NYSE:THI), Toro Ventures Inc.
Total Enterprise Value ($mm) [Latest]: 68,695.3
Darden Restaurants Inc. (NYSE:DRI)

Industry Classification: Full Service Restaurants
Security Tickers: NYSE:DRI, BBSE:DDN, XTRA:DRI
Business Description: Darden Restaurants, Inc. engages in the ownership and operation of casual dining restaurants
in the United States and Canada. The company operates restaurants under the names Red
Lobster, Olive Garden, Bahama Breeze, Smokey Bones, and Seasons 52. As of May 5, 2007,
it operated approximately 1,400 Red Lobster, Olive Garden, Bahama Breeze, Smokey Bones,
and Seasons 52 restaurants. The company was founded in 1968 and is based in Orlando,
Florida.
EBITDA ($mm) [LTM]: 800.2
Competitors: Granite City Food & Brewery Ltd. (NasdaqNM:GCFB)
Page 1 of 11
Exhibit 2
Confidential

TravelCenters of America LLC (AMEX:TA)
Primary Industry: Automotive Retail
Security Tickers: AMEX:TA, BBSE:T8A
Business Description: TravelCenters of America, Inc., through its subsidiaries, engages in the ownership, operation,
and franchising of travel centers along the United States interstate highway system. Its typical
travel centers contain parking space for tractor trailers and cars; full service and quick service
restaurants that it operates as a franchisee under various brands, including the Country Pride,
Buckhorn Family Restaurants, Fork in the Road brands, Arby’s, Burger King, Pizza Hut,
Popeye’s Chicken & Biscuits, Starbuck’s Coffee, Subway, and Taco Bell; truck repair facility
and parts stores; multiple diesel and gasoline fueling points; travel and convenience stores,
game rooms, lounge, and other amenities; and hotels at some of its travel centers under
franchise contracts with branded chains, including Days Inn, HoJo Inn, Knight’s Inn, Rodeway,
and Travelodge. The company’s customers include long haul trucking fleets and their drivers,
and independent truck drivers and motorists. As of March 15, 2007, its network included 164
travel centers located in 40 states in the United States and the province of Ontario, Canada.
The company was founded in 1992 and is headquartered in Westlake, Ohio.
Competitors: Flying J, Inc., Love's Travel Stops and Country Stores, Inc., Pilot Travel Centers LLC
Total Enterprise Value ($mm) [Latest]: 511.7
Brinker International Inc. (NYSE:EAT)

Security Tickers: NYSE:EAT, DB:BKJ
Business Description: Brinker International, Inc. primarily engages in the ownership, operation, development, and
franchising of restaurant brands in the United States. It operates restaurants under the names
of Chili's Grill & Bar, Romano's Macaroni Grill, Maggiano's Little Italy, and On The Border
Mexican Grill & Cantina. As of June 28, 2006, the company operated 1,622 jointly-developed
and franchised restaurants located in 49 states, and Washington, D.C. Brinker International
also has restaurants in the countries of Australia, Bahrain, Canada, Egypt, Great Britain,
Germany, Guatemala, Indonesia, Japan, Kuwait, Lebanon, Malaysia, Mexico, Oman, Peru, the
Philippines, Puerto Rico, Qatar, Saudi Arabia, South Korea, Taiwan, the United Arab Emirates,
and Venezuela. The company was founded in 1977 and is headquartered in Dallas, Texas.
Competitors: Burger King Corporation (NYSE:BKC), Granite City Food & Brewery Ltd. (NasdaqNM:GCFB)
Page 2 of 11
Exhibit 2
Confidential

OSI Restaurant Partners, Inc.
Security Tickers: -
Business Description: OSI Restaurant Partners, Inc. engages in the development and operation of casual dining
restaurants. As of December 31, 2006, it had 1,408 system-wide restaurants, including 786
domestic Outback Steakhouses, 162 international Outback Steakhouses, 229
Carrabba_$BCT_(B Italian Grills, 119 Bonefish Grills, 45 Fleming_$BCT_(B Prime
Steakhouse and Wine Bars, 23 Roy_$BCT_(B, 5 Lee Roy Selmon_$BCT_(B, 1 Blue Coral
Seafood and Spirits, and 38 Cheeseburger in Paradise restaurants in the United States and
20 countries internationally. The company was founded in 1987 as Multi-Venture Partners, Inc.
and changed its name to Outback Steakhouse, Inc. in 1990. Further, the company changed its
name to OSI Restaurant Partners, Inc. in 2006. OSI Restaurant Partners is headquartered in
Tampa, Florida.
Competitors: Granite City Food & Brewery Ltd. (NasdaqNM:GCFB), Papa John's International Inc.
(NasdaqNM:PZZA)
Total Enterprise Value ($mm) [Latest]: -
Wendy's International Inc. (NYSE:WEN)

Security Tickers: NYSE:WEN, BBSE:WEI, XTRA:WEN
Business Description: Wendy’s International, Inc. and its subsidiaries engage in the operation, development, and
franchising of quick-service restaurants in the United States, Canada, and internationally. As
of December 31, 2006, the company operated 6,673 restaurants, of these restaurants 1,465
were operated by the company and 5,208 by the company’s franchisees. Wendy’s
International, Inc. was founded in 1969 and is based in Dublin, Ohio.
Competitors: AFC Enterprises Inc., Back Yard Burgers Inc. (NasdaqSC:BYBI), Burger King Corporation
(NYSE:BKC), Carrols Restaurant Group, Inc. (NasdaqNM:TAST), CKE Restaurants Inc.
(NYSE:CKR), Jack in the Box Inc. (NYSE:JBX)
Page 3 of 11
Exhibit 2
Confidential

Bob Evans Farms Inc. (NasdaqNM:BOBE)
Security Tickers: NasdaqNM:BOBE, BBSE:BF3
Business Description: Bob Evans Farms, Inc. engages in the ownership and operation of restaurants in the United
States. The company operates Bob Evans Restaurants primarily located in the Midwest, mid-
Atlantic, and Southeast regions, as well as Mimi’s Cafés primarily located in California and
other western states. As of April 27, 2007, it owned and operated 694 restaurants, including
579 Bob Evans Restaurants in 18 states and 115 Mimi’s Cafés in 20 states. Bob Evans also
owns and operates SWH Custom Foods, a prep kitchen in Fullerton, California, that prepares
signature muffin mixes, dressings, sauces, and soups for third party restaurants. In addition,
the company produces and distributes fresh and cooked pork products, and various
complementary home-style convenience food items under the Bob Evans and Owens brand
names. It offers food items, such as fresh, smoked, and cooked pork sausage and hickory-
smoked bacon products; and convenience food items, including mashed potatoes,
sandwiches, macaroni and cheese, and entrees primarily to grocery stores in the east north
central, southern, mid-Atlantic, and southwestern United States. Bob Evans distributes its food
products through direct-store delivery system and customer warehouses, as well as through
food wholesalers and distributors. The company was founded in 1953 and is based in
Columbus, Ohio.
Competitors: Friendly Ice Cream Corp. (AMEX:FRN), Michael Foods Inc., VICORP Restaurants, Inc.
Ruby Tuesday, Inc. (NYSE:RT)

Industry Classification: Fast-Food Restaurants, Full Service Restaurants
Security Tickers: NYSE:RT, BBSE:RYW
Business Description: Ruby Tuesday, Inc., together with its subsidiaries, engages in the development, ownership,
operation, and franchising of Ruby Tuesday brand casual dining restaurants. As of October
23, 2006, it owned, operated, or franchised 900 casual dining restaurants primarily in the
United States, the Asia Pacific region, India, Kuwait, Puerto Rico, Canada, Mexico, Iceland,
Eastern Europe, and Central and South America. Ruby Tuesday was founded in 1920 and is
based in Maryville, Tennessee.
Competitors: Burger King Corporation (NYSE:BKC)
Page 4 of 11
Exhibit 2
Confidential

Cheesecake Factory Inc. (NasdaqNM:CAKE)
Security Tickers: NasdaqNM:CAKE, BBSE:CF2, XTRA:CAKE
Business Description: The Cheesecake Factory Incorporated operates upscale, full-service, casual dining
restaurants under The Cheesecake Factory and Grand Lux Cafe marks in the United States.
As of June 29, 2007, the company operated 125 upscale, full-service, casual dining
restaurants under The Cheesecake Factory mark; 9 upscale, full-service, casual dining
restaurants under the Grand Lux Cafe mark in 6 states; and 1 self-service, limited menu
‘express’ foodservice operation under The Cheesecake Factory Express mark inside the
DisneyQuest family entertainment center in Orlando, Florida. It also licensed 2 bakery cafes
under The Cheesecake Factory Bakery Cafe mark to another foodservice operator, as of the
above date. In addition, the company operates bakery production facilities in Calabasas Hills,
California and Rocky Mount, North Carolina that produce bakery products for its restaurants,
as well as for other foodservice operators, retailers, and distributors. The Cheesecake Factory
was founded in 1972 and is based in Calabasas Hills, California.
Competitors: Gordon Biersch Brewery Restaurant Group, Inc.
Cracker Barrel Old Country Store, Inc.

Security Tickers: -
Business Description: Cracker Barrel Old Country Store, Inc. operates restaurants and retail stores in the United
States. Its restaurant offers sausages, salads, spreads, muffins, tea and coffee, orange juice,
grapefruit juice, apple cider, cereals, and dressings, as well as meatloaf and homemade
chicken dumplins, and made-from-scratch biscuits. Cracker Barrel’s retail store offers gift
items, including accessories for the home, old-fashioned candies, books on audio, nostalgic
items, and children’s games and puzzles. The company was founded in 1969 and is
headquartered in Lebanon, Tennessee. Cracker Barrel Old Country Store, Inc. operates as a
subsidiary of CBRL Group, Inc.
EBITDA ($mm) [LTM]: -
Competitors: -
Page 5 of 11
Exhibit 2
Confidential

Buffets Inc.
Security Tickers: -
Business Description: Buffets, Inc. operates a chain of restaurants primarily in the mid-scale family dining industry in
the United States. The company owns and operates restaurants under the names ‘Old
Country Buffet’, ‘Country Buffet’, and ‘HomeTown Buffet’. As of June 28, 2006, it had 338
company-owned restaurants and 18 franchised locations in 35 states. The company was
founded in 1983 and is headquartered in Eagan, Minnesota. Buffets, Inc. is a subsidiary of
Buffets Holdings, Inc.
Competitors: -
Ameristar Casinos Inc. (NasdaqNM:ASCA)

Primary Industry: Casinos and Gaming
Security Tickers: NasdaqNM:ASCA, BBSE:AJB
Business Description: Ameristar Casinos, Inc. engages in the development, ownership, and operation of casinos and
related hotel, food and beverage, entertainment, and other facilities in the United States. It
offers various table games, including blackjack, craps and roulette, and live poker, as well as
slot machines, and multi-coin nickel and penny denomination games. The company also
provides various dining, lodging, and entertainment options. Its signature restaurant concepts
include steakhouses, and elaborate buffets with display cooking and casual dining restaurants
with sports bars. As of December 31, 2006, the company operated seven properties in
Missouri, Iowa, Mississippi, Louisiana, Colorado, and Nevada. Its portfolio of casinos
comprises Ameristar St. Charles in greater St. Louis, Missouri; Ameristar Kansas City in the
Kansas City, Missouri metropolitan area; Ameristar Council Bluffs in Omaha, Nebraska, and
southwestern Iowa; Ameristar Vicksburg in Jackson, Mississippi, and Monroe, Louisiana;
Ameristar Black Hawk in the Denver metropolitan area; and Cactus Petes and The Horseshu
in Jackpot, Nevada. The company was founded in 1954 and is based in Las Vegas, Nevada.
Competitors: Isle of Capri Casinos Inc. (NasdaqNM:ISLE)
Page 6 of 11
Exhibit 2
Confidential

RARE Hospitality International Inc. (NasdaqNM:RARE)
Security Tickers: NasdaqNM:RARE, BBSE:RRH
Business Description: RARE Hospitality International, Inc. and its subsidiaries operate and franchise restaurants in
the United States. It operates company-owned restaurants, joint venture restaurants, and
franchised restaurants. As of June 21, 2007, the company owned, operated, and franchised
316 restaurants, including 286 LongHorn Steakhouse restaurants and 28 Capital Grille
restaurants. RARE Hospitality International also operates Hemenway’s Seafood Grille &
Oyster Bar; and The Old Grist Mill Tavern restaurant. The company was founded in 1981 and
is based in Atlanta, Georgia.
Total Revenue ($mm) [LTM]: 992.7
Competitors: Red Robin Gourmet Burgers Inc. (NasdaqNM:RRGB), Ruth's Chris Steak House Inc.
(NasdaqNM:RUTH)
PF Chang's China Bistro Inc. (NasdaqNM:PFCB)

Security Tickers: NasdaqNM:PFCB, BBSE:PF2
Business Description: P.F. Chang’s China Bistro, Inc., through its subsidiaries, engages in the ownership and
operation of restaurants in the United States. The company operates full service restaurants
under the brand names ‘P.F. Chang’s China Bistro’ and ‘Taneko Japanese Tavern’; and quick
casual restaurants under the name ‘Pei Wei Asian Diner’. As of December 31, 2006, P.F.
Chang’s owned and operated 152 P.F. Chang’s China Bistro restaurants, 107 Pei Wei Asian
Diner restaurants, and 1 Taneko Japanese Tavern restaurant. P.F. Chang’s China Bistro was
founded in 1996 and is headquartered in Scottsdale, Arizona.
Competitors: Gordon Biersch Brewery Restaurant Group, Inc., Red Robin Gourmet Burgers Inc.
(NasdaqNM:RRGB)
Page 7 of 11
Exhibit 2
Confidential

Chipotle Mexican Grill, Inc. (NYSE:CMG)
Security Tickers: NYSE:CMG, BBSE:C9FA, DB:C9F, NYSE:CMG.B
Business Description: Chipotle Mexican Grill, Inc. engages in the development and operation of fast-casual, Mexican
food restaurants in the United States. As of December 31, 2006, it operated 581 restaurants,
including 8 franchise restaurants. The company was founded in 1993 and is based in Denver,
Colorado.
Competitors: Rubio's Restaurants Inc. (NasdaqNM:RUBO)
Lone Star Steakhouse & Saloon Inc.

Security Tickers: BBSE:LO2
Business Description: Lone Star Steakhouse & Saloon, Inc. engages in the ownership and operation of mid-priced,
full service, casual dining restaurant concepts in the United States. The company operates
restaurants under Lone Star, Texas Land & Cattle, Sullivan's, and Del Frisco's brand names.
As of March 6, 2006, the company owned and operated 250 restaurants. It also operated a
mid-priced restaurant operating as Frankie's Italian Grille, as well as licensed 4 Lone Star
restaurants in California, 1 Del Frisco’s restaurant in Florida, 12 Lone Star Steakhouse &
Saloon restaurants in Australia, and 1 in Guam, as of the above date. The company was
founded in 1991 and is headquartered in Wichita, Kansas. As of December 13, 2006, Lone
Star Steakhouse & Saloon Inc. was taken private.
Competitors: Ruth's Chris Steak House Inc. (NasdaqNM:RUTH)
Doctor's Associates Inc.

Security Tickers: -
Business Description: Doctor's Associates, Inc. engages in franchising submarine sandwich chain and restaurants
through Subway brand worldwide. Its restaurants offer various foot long and 6-inch
sandwiches, salads, and wraps made of meats, cheeses, vegetables, and toppings. Doctor's
Associates, Inc. was founded in 1965 and is headquartered in Milford, Connecticut. The
company has additional offices in Amsterdam, Australia, Lebanon, Miami, Singapore, and
South Korea.
Competitors: Burger King Corporation (NYSE:BKC), Tim Hortons Inc. (NYSE:THI)
Page 8 of 11
Exhibit 2
Confidential

Texas Roadhouse Inc. (NasdaqNM:TXRH)
Security Tickers: NasdaqNM:TXRH, BBSE:ROW
Business Description: Texas Roadhouse, Inc., together with its subsidiaries, operates a full-service, casual dining
restaurant chain in the United States. As of December 26, 2006, the company operated 251
Texas Roadhouse restaurants comprising 163 owned and operated restaurants and 88
franchised and licensed restaurants. Texas Roadhouse was founded in 1993 and is based in
Louisville, Kentucky.
Competitors: -
Perkins & Marie Callender’s Inc.

Security Tickers: -
Business Description: Perkins & Marie Callender’s, Inc., together with its subsidiaries, operates and franchises full-
service family dining restaurants primarily in the Midwest, Florida, and Pennsylvania under the
brand name Perkins Restaurant and Bakery. The company also operates casual-dining
restaurants and sells pie and other bakery items primarily located in the western United States
under the name Marie Callender’s Restaurant and Bakery. In addition, it manufactures and
sells pies, pancake mixes, cookie doughs, muffin batters, and other bakery products for third-
party customers. As of December 31, 2006, the company’s network consisted of 155 operated
and 322 franchised Perkins’ restaurants in 33 states and in 5 Canadian provinces, as well as
92 operated and 46 franchised Marie Callender’s restaurants in four states and Mexico. It also
operated 11 Marie Callender’s restaurants under partnership agreements. The company,
formerly known as The Restaurant Company, was founded in 1958 and is based in Memphis,
Tennessee. Perkins & Marie Callender’s, Inc. is a subsidiary of Perkins & Marie Callender’s
Holding, Inc.
Competitors: VICORP Restaurants, Inc.
California Pizza Kitchen Inc. (NasdaqNM:CPKI)

Security Tickers: NasdaqNM:CPKI, BBSE:CN6
Business Description: California Pizza Kitchen, Inc., together with its subsidiaries, owns, operates, licenses, and
franchises a chain of casual dining restaurants in the United States and internationally. It
operates restaurants under the California Pizza Kitchen, California Pizza Kitchen ASAP, and
LA Food Show names in the United States. The company has a trademark license agreement
with Kraft Pizza Company to manufacture and distribute a line of California Pizza Kitchen
frozen pizzas in the United States and Canada. As of May 15, 2007, it had 213 restaurants, of
which 182 were company-owned and 31 operated under franchise or license agreements. The
company was founded in 1985 and is headquartered in Los Angeles, California.
Competitors: Red Robin Gourmet Burgers Inc. (NasdaqNM:RRGB)
Page 9 of 11
Exhibit 2
Confidential
Real Mex Restaurants Inc.

Security Tickers: -
Business Description: Real Mex Restaurants, Inc. operates full service, Mexican casual dining restaurant chain in the
United States. It operates restaurants primarily under El Torito, Acapulco Mexican Restaurant
Y Cantina, and Chevys Fresh Mex brand names. These restaurants offer various Mexican
dishes and alcoholic beverages. The company, through its subsidiary, Real Mex Foods, Inc.
manufactures specialty products for outside customers, including fast food and casual
restaurants, amusement parks, and club stores, as well as food service, retail, vending, and
institutional customers. As of December 31, 2006, the company owned and operated 195
restaurants principally located in California. Real Mex Restaurants was founded in 1998. It
was formerly known as Acapulco Acquisition Corp. and changed its name to Real Mex
Restaurants, Inc. in 2004. The company is headquartered in Cypress, California. Real Mex
Restaurants, Inc. is a subsidiary of RM Restaurant Holding Corp.
Competitors: -
Investors Management Corporation

Security Tickers: -
Business Description: Investors Management Corporation, a holding company, operates a chain of family steak
house restaurants in the United States. Its restaurants offer steak, chicken, and fish entrees.
The company also offers pastries and baked goods. Investors Management Corporation is
based in Raleigh, North Carolina.
Competitors: Worldwide Restaurant Concepts Inc.
Page 10 of 11
Exhibit 2
Confidential

Friendly Ice Cream Corp. (AMEX:FRN)
Security Tickers: AMEX:FRN, BBSE:FY2
Business Description: Friendly Ice Cream Corporation engages in the operation of casual dining restaurant in the
United States. It also involves in the manufacture and sale of ice cream desserts through retail
and institutional locations, and franchising. The company distributes ice cream dessert
products to Friendly's restaurants, supermarkets, and other retail locations. As of December
31, 2006, it operated 316 restaurants, and franchised 198 restaurants and 7 non-traditional
units. Friendly Ice Cream Corporation was founded in 1935 and is headquartered in
Wilbraham, Massachusetts.
Competitors: Baskin-Robbins Incorporated, Ben & Jerry's Homemade Inc., Big Boy Restaurants
International, LLC., Bob Evans Farms Inc. (NasdaqNM:BOBE), Carvel Corporation, CBRL
Group Inc. (NasdaqNM:CBRL), Cold Stone Creamery, Inc., Country Kitchen International,
Denny's Corp. (NasdaqSC:DENN), IHOP Corp. (NYSE:IHP), International Dairy Queen,
Shoney's, Inc., Swensen's, TCBY Enterprises, Inc., Village Inn Restaurants, Waffle House,
Inc.
Financial data provided by
Estimates data provided by
Historical Equity Pricing Data supplied by
Certain data is the copyrighted (2005) material of Dun & Bradstreet, Inc.,
which reserves all of its rights
Fixed income security data provided by
Fixed income security and pricing data provided by
Standard & Poor's ratings information is updated on a daily basis.
Ownership data provided by Thomson Financial
Page 11 of 11
EXHIBIT 3
Exhibit 3 documents the steps used and criteria considered in selecting the set of
guideline companies.
Exhibit 3
Date: March 1, 2007
To: Work Paper Files
From: Valuation Analyst
Subject: Selection of Public Guideline Companies
The following outlines the process utilized to select the public guideline companies.
Subject Company Name: Applebee’s International Inc.
Subject Company SIC Code(s): SIC 5812, Full Service Restaurants
Subject Company Description:
Applebee’s® International, Inc., headquartered in Overland Park, Kansas, develops, franchises

and operates casual dining restaurants in 49 states, one US territory, and 16 international
countries under the Applebee’s Neighborhood Grill & Bar® brand.
Each Applebee’s Neighborhood Grill & Bar is designed as an attractive, friendly, neighborhood
establishment featuring moderately priced, high-quality food and beverage items, table service
and a comfortable atmosphere that appeals to all ages. As "America’s Favorite Neighbor®," each
Applebee’s restaurant reflects its local neighborhood. The decor conveys this theme with
photographs and memorabilia highlighting hometown heroes, local schools and area history.
Applebee’s Neighborhood Grill & Bar is the largest casual dining concept in America, both in
terms of number of restaurants and market share. As of Dec. 31, 2006, there were 1,930
Applebee’s Neighborhood Grill & Bar restaurants, of which 1,409 were operated by franchisees
and 521 were operated by the company.
The company’s common stock trades on The NASDAQ Global Select Market® under the symbol
APPB.
For the fiscal year ended December 2006, the company generated revenues of $1,338 million, an
increase of 9.9% on the previous year. The company saw a net income of $81 million during
fiscal 2006, an decrease of -20.6% on fiscal 2005.
Exhibit 3
Public Guideline Selection Process
1. Searched Capital IQ and OneSource based on SIC Code 5812
2. Searched Capital IQ and OneSource for competitors of Subject Company and

competitors of these competitors.
3. The pool of potential guideline companies was refined based on the following criteria:
a. Products and services of the Subject Company

b. Size: Revenue is greater than $500 million
c. Business Description: Full Service Restaurants and Casual Dining
d. Geographic location: United States
e. Trading Activity: Guideline companies with a per share value of under $2 were
excluded; guideline companies traded on the OTC exchanges were excluded.
Based on the criteria listed above, the following companies were selected:
No. Company Ticker Last FY Sales Brief Description/Major Products & Services
Name ($ millions)
1 Darden Restaurants DRI $5,720.60 Darden Restaurants, Inc. engages in the ownership and
Inc. operation of casual dining restaurants in the United
States and Canada. The company operates restaurants
under the names Red Lobster, Olive Garden, Bahama
Breeze, Smokey Bones, and Seasons 52. As of May 5,
2007, it operated approximately 1,400 Red Lobster,
Olive Garden, Bahama Breeze, Smokey Bones, and
Seasons 52 restaurants. The company was founded in
1968 and is based in Orlando, Florida.
2 Brinker International EAT $4,151.30 Brinker International, Inc. primarily engages in the
Inc. ownership, operation, development, and franchising of
restaurant brands in the United States. It operates
restaurants under the names of Chili's Grill & Bar,
Romano's Macaroni Grill, Maggiano's Little Italy, and
On The Border Mexican Grill & Cantina. As of June 28,
2006, the company operated 1,622 jointly-developed and
franchised restaurants located in 49 states, and
Washington, D.C. Brinker International also has
restaurants in the countries of Australia, Bahrain,
Canada, Egypt, Great Britain, Germany, Guatemala,
Indonesia, Japan, Kuwait, Lebanon, Malaysia, Mexico,
Oman, Peru, the Philippines, Puerto Rico, Qatar, Saudi
Arabia, South Korea, Taiwan, the United Arab Emirates,
and Venezuela. The company was founded in 1977 and
is headquartered in Dallas, Texas.
3 OSI Restaurant OSI $3,941.00 OSI Restaurant Partners, Inc. engages in the
Partners, Inc. development and operation of casual dining restaurant.
As of December 31, 2006, it had 1,408 system-wide
restaurants, including 786 domestic Outback
Steakhouses, 162 international Outback Steakhouses,
Exhibit 3
229 Carrabba’s Italian Grills, 119 Bonefish Grills, 45

Fleming’s Prime Steakhouse and Wine Bars, 23 Roy’s, 5
Lee Roy Selmon’s, 1 Blue Coral Seafood and Spirits,
and 38 Cheeseburger in Paradise restaurants in the
United States and 20 countries internationally. The
company was founded in 1987 as Multi-Venture
Partners, Inc. and changed its name to Outback
Steakhouse, Inc. in 1990. Further, the company changed
its name to OSI Restaurant Partners, Inc. in 2006. OSI
Restaurant Partners is headquartered in Tampa, Florida.
4 Ruby Tuesday, Inc. RT $1,306.20 Ruby Tuesday, Inc., together with its subsidiaries,
engages in the development, ownership, operation, and
franchising of Ruby Tuesday brand casual dining
restaurants. As of October 23, 2006, it owned, operated,
or franchised 900 casual dining restaurants primarily in
the United States, the Asia Pacific region, India, Kuwait,
Puerto Rico, Canada, Mexico, Iceland, Eastern Europe,
and Central and South America. Ruby Tuesday was
founded in 1920 and is based in Maryville, Tennessee.
5 Rare Hospitality RARE $986.90 RARE Hospitality International, Inc. and its subsidiaries
International Inc. operate and franchise restaurants in the United States. It
operates company-owned restaurants, joint venture
restaurants, and franchised restaurants. As of June 21,
2007, the company owned, operated, and franchised 316
restaurants, including 286 LongHorn Steakhouse
restaurants and 28 Capital Grille restaurants. RARE
Hospitality International also operates Hemenway’s
Seafood Grille & Oyster Bar; and The Old Grist Mill
Tavern restaurant. The company was founded in 1981
and is based in Atlanta, Georgia.
Describe any special criteria for including or excluding certain guideline companies, if
necessary
In addition, we excluded companies because of the number of restaurants in operation or

franchised (too few or too many relative to Applebee’s), quality of the restaurant (either too
high end or too low end), and type of food served.
EXHIBIT 4
Exhibit 4 provides the selected guideline companies’ “raw” financial statements.

Workpaper vii, Page 1 of 3 Exhibit 4
Applebees
Business Valuation
Historical Financial Analysis: Guideline Company 1
Valuation as of December 31, 2006 Darden Restaurants Inc.
($ Millions)
BALANCE SHEETS
Fiscal Years Ended As of
ASSETS 2004 2005 2006 8/27/2006

Current Assets
Inventories 198.8 7.2% 235.4 8.0% 198.7 6.6% 208.7 6.8%

Gross Property, Plant & Equipment 3,779.4 135.9% 4,016.2 136.7% 4,228.6 140.5% NA
Accumulated depreciation (1,528.7) -55.0% (1,664.7) -56.7% (1,782.5) -59.2% NA
Net Property, Plant & Equipment 2,250.7 80.9% 2,351.5 80.0% 2,446.1 81.3% 2,449.3 80.0%
Non-Current Assets
Intangible Assets 54.5 2.0% 55.7 1.9% 56.0 1.9% - 0.0%
TOTAL ASSETS: $ 2,780.4 100.0% $ 2,937.8 100.0% $ 3,010.3 100.0% $ 3,060.2 100.0%

Current Liabilities
Long-term Debt Due in One Year $ 14.5 0.5% $ 299.9 10.2% $ 193.9 6.4% $ 230.0 7.5%
Income Taxes Payable 48.8 1.8% 52.4 1.8% 64.8 2.2% 96.9 3.2%
Total Current Liabilities 683.5 24.6% 1,044.6 35.6% 1,026.1 34.1% 1,036.5 33.9%
Long-term Debt 653.3 23.5% 350.3 11.9% 494.7 16.4% 493.9 16.1%
Other Non-Current Liabilities 135.6 4.9% 155.1 5.3% 169.0 5.6% 178.5 5.8%
TOTAL LIABILITIES 1,605.1 57.7% 1,664.8 56.7% 1,780.4 59.1% 1,795.6 58.7%
Preferred Stock - 0.0% - 0.0% - 0.0% - 0.0%
Common Equity 1,175.3 42.3% 1,273.0 43.3% 1,229.8 40.9% 1,264.6 41.3%
Common Stock - 0.0% - 0.0% - 0.0% - 0.0%
Capital Surplus - 0.0% - 0.0% - 0.0% - 0.0%
Treasury Stock - 0.0% - 0.0% - 0.0% - 0.0%
TOTAL STOCKHOLDERS' EQUITY 1,175.3 42.3% 1,273.0 43.3% 1,229.8 40.9% 1,264.6 41.3%
TOTAL LIABILITIES & CAPITAL $ 2,780.4 100.0% $ 2,937.8 100.0% $ 3,010.2 100.0% $ 3,060.2 100.0%
Source Notes:
[S1] Source
Exhibit 4
Workpaper vii, Page 2 of 3
Applebees
Business Valuation
($ Millions)
Fiscal Years ended LTM as of
2004 2005 2006 8/27/2006
Net Sales $ 5,003.4 100.0% $ 5,278.1 100.0% $ 5,720.6 100.0% $ 5,767.3 100.0%
Cost of Goods Sold 3,902.9 78.0% 4,095.8 77.6% 4,427.5 77.4% 4,455.8 77.3%
GROSS PROFIT 1,100.5 22.0% 1,182.3 22.4% 1,293.1 22.6% 1,311.5 22.7%
Operating Expenses
Sales & Marketing - 0.0% - 0.0% - 0.0% - 0.0%
General & Administrative - 0.0% - 0.0% - 0.0% - 0.0%
Other Operating Expenses 472.1 9.4% 497.5 9.4% 1,027.3 18.0% 1,036.7 18.0%
EBITDA [D2] 628.4 12.6% 684.8 13.0% 265.8 4.6% 274.8 4.8%
EBIT [D3] 418.4 8.4% 471.6 8.9% 44.3 0.8% 50.7 0.9%
Non-Operating Expense/(Income) - 0.0% - 0.0% - 0.0% - 0.0%
EBT [D4] 332.8 6.7% 424.0 8.0% (17.5) -0.3% (15.0) -0.3%
Income Taxes 105.6 2.1% 133.3 2.5% 144.3 2.5% 143.9 2.5%
NET INCOME $ 227.2 4.5% $ 290.7 5.5% $ (161.8) -2.8% $ (158.9) -2.8%
SUPPLEMENTAL DATA:

MARGIN SUMMARY:
GROSS MARGIN [D5] 22% 22% 23% 23%
NET MARGIN [D7] 5% 6% -3% -3%
Definitions:

Source Notes:
[S1] Source
Exhibit 4
Workpaper vii, Page 3 of 3
Applebees
Business Valuation
RATIO ANALYSIS
2004 2005 2006 8/27/2006

LIQUIDITY ANALYSIS
Quick ratio 0.1 0.1 0.1 0.1
Operating working capital
OWC/sales -7% -12% -11% -11%
Trade cycle 5 7 - 5
LEVERAGE ANALYSIS

OPERATING ANALYSIS
Return on average assets 16% 10% -5% -5%
Return on equity [F1] 19% 23% -13% -13%
Net Income/EBT 68% 69% 925% 1059%
EBT/EBIT 80% 90% -40% -30%
EBIT/Sales 8% 9% 1% 1%
Sales/Assets 1.8 1.8 1.9 1.9
Source Notes:
[S1] Source
Footnotes:
Workpaper viii, Page 1 of 3 Exhibit 4
Applebees
Business Valuation
Valuation as of December 31, 2006 Brinker International Inc.
($ Millions)
BALANCE SHEETS
ASSETS 2004 2005 2006 9/27/2006

Current Assets
Inventories 38.1 1.7% 48.6 2.3% 40.3 1.8% 38.2 1.7%

Accumulated depreciation (823.1) -36.5% (925.0) -42.9% (1,043.1) -46.9% NA
Non-Current Assets
TOTAL ASSETS: $ 2,254.4 100.0% $ 2,156.0 100.0% $ 2,221.8 100.0% $ 2,243.0 100.0%

Current Liabilities
Long-term Debt 639.3 28.4% 406.5 18.9% 500.5 22.5% 504.9 22.5%
Deferred Taxes & ITC 72.5 3.2% 56.2 2.6% 7.0 0.3% - 0.0%
Preferred Stock - 0.0% - 0.0% - 0.0% - 0.0%
Common Equity 1,010.4 44.8% 1,100.3 51.0% 1,075.8 48.4% 1,097.3 48.9%
Common Stock - 0.0% - 0.0% - 0.0% - 0.0%
Capital Surplus - 0.0% - 0.0% - 0.0% - 0.0%
Treasury Stock - 0.0% - 0.0% - 0.0% - 0.0%
Source Notes:
[S1] Source
Exhibit 4
Workpaper viii, Page 2 of 3
Applebees
Business Valuation
($ Million's)
2004 2005 2006 9/27/2006
Net Sales $ 3,541.0 100.0% $ 3,749.5 100.0% $ 4,151.3 100.0% $ 4,215.3 100.0%
GROSS PROFIT 635.9 18.0% 613.2 16.4% 725.8 17.5% 741.7 17.6%
Operating Expenses
Sales & Marketing - 0.0% - 0.0% - 0.0% - 0.0%
Other Operating Expenses 2.7 0.1% 2.1 0.1% 32.2 0.8% 36.4 0.9%
EBITDA [D2] 485.3 13.7% 460.1 12.3% 518.7 12.5% 531.5 12.6%
EBIT [D3] 317.5 9.0% 280.2 7.5% 328.5 7.9% 339.8 8.1%
Non-Operating Expense/(Income) 1.7 0.0% 1.5 0.0% (1.7) 0.0% (2.3) -0.1%
EBT [D4] 235.1 6.6% 191.5 5.1% 305.3 7.4% 317.6 7.5%
Income Taxes 82.9 2.3% 33.1 0.9% 91.4 2.2% 94.5 2.2%
NET INCOME $ 152.2 4.3% $ 158.4 4.2% $ 213.9 5.2% $ 223.1 5.3%
SUPPLEMENTAL DATA:

MARGIN SUMMARY:
GROSS MARGIN [D5] 18% 16% 17% 18%
NET MARGIN [D7] 4% 4% 5% 5%
Definitions:

Source Notes:
[S1] Source
Exhibit 4
Workpaper viii, Page 3 of 3
Applebees
Business Valuation
RATIO ANALYSIS
2004 2005 2006 9/27/2006

LIQUIDITY ANALYSIS
Quick ratio 0.7 0.2 0.2 0.2
OWC/sales 1% -3% -6% -6%
Trade cycle (4) (5) (7) (7)
LEVERAGE ANALYSIS

OPERATING ANALYSIS
EBT/EBIT 74% 68% 93% 94%
Sales/Assets 1.6 1.7 1.9 1.9
Source Notes:
[S1] Source
Footnotes:
Workpaper ix, Page 1 of 3 Exhibit 4
Applebees
Business Valuation
Valuation as of December 31, 2006 OSI Restaurant Partners, Inc.
($ Millions)
BALANCE SHEETS
ASSETS 2004 2005 2006 6/30/2006

Current Assets
Inventories 63.4 3.7% 68.5 3.4% 87.1 3.9% 67.2 3.2%

Accumulated depreciation (533.4) -30.8% (645.9) -32.1% (776.6) -34.4% NA
Non-Current Assets
TOTAL ASSETS: $ 1,733.4 100.0% $ 2,009.5 100.0% $ 2,258.6 100.0% $ 2,076.6 100.0%

Current Liabilities
Long-term Debt 90.2 5.2% 121.9 6.1% 209.6 9.3% 219.2 10.6%
Deferred Taxes & ITC - 0.0% - 0.0% - 0.0% - 0.0%
Minority Interest 48.1 2.8% 44.3 2.2% 36.9 1.6% 43.0 2.1%
TOTAL LIABILITIES 686.3 39.6% 865.1 43.1% 1,037.4 45.9% 857.8 41.3%
Preferred Stock - 0.0% - 0.0% - 0.0% - 0.0%
Common Equity 1,047.1 60.4% 1,144.4 56.9% 1,221.2 54.1% 1,218.8 58.7%
Common Stock - 0.0% - 0.0% - 0.0% - 0.0%
Capital Surplus - 0.0% - 0.0% - 0.0% - 0.0%
Treasury Stock - 0.0% - 0.0% - 0.0% - 0.0%
Source Notes:
[S1] Source
Applebees
Business Valuation
($ Million's)
2004 2005 2006 6/30/2006
Net Sales $ 3,216.0 100.0% $ 3,612.7 100.0% $ 4,191.0 100.0% $ 4,019.7 100.0%
GROSS PROFIT 1,195.7 37.2% 1,367.0 37.8% 1,688.3 40.3% 1,647.6 41.0%
Operating Expenses
Sales & Marketing - 0.0% - 0.0% - 0.0% - 0.0%
EBITDA [D2] 353.9 11.0% 386.1 10.7% 571.0 13.6% 591.0 14.7%
EBIT [D3] 249.1 7.7% 258.3 7.1% 419.4 10.0% 452.0 11.2%
Non-Operating Expense/(Income) 0.4 0.0% 5.8 0.2% (5.2) -0.1% (0.7) 0.0%
EBT [D4] 239.4 7.4% 221.6 6.1% 398.8 9.5% 425.1 10.6%
Income Taxes 78.6 2.4% 73.8 2.0% 41.8 1.0% 53.9 1.3%
NET INCOME $ 151.6 4.7% $ 146.6 4.1% $ 350.2 8.4% $ 370.8 9.2%
SUPPLEMENTAL DATA:

MARGIN SUMMARY:
GROSS MARGIN [D5] 37% 38% 40% 41%
NET MARGIN [D7] 5% 4% 8% 9%
Definitions:

Source Notes:
[S1] Source
Applebees
Business Valuation
RATIO ANALYSIS
2004 2005 2006 6/30/2006

LIQUIDITY ANALYSIS
Quick ratio 0.3 0.2 0.3 0.3
OWC/sales -6% -6% -6% -5%
Trade cycle - (5) (7) (1)
LEVERAGE ANALYSIS

OPERATING ANALYSIS
EBT/EBIT 96% 86% 95% 94%
EBIT/Sales 8% 7% 10% 11%
Sales/Assets 1.9 1.8 1.9 1.9
Source Notes:
[S1] Source
Footnotes:
Workpaper x, Page 1 of 3 Exhibit 4
Applebees
Business Valuation
Valuation as of December 31, 2006 Ruby Tuesday, Inc.
($ Millions)
BALANCE SHEETS
ASSETS 2004 2005 2006 9/5/2006

Current Assets
Inventories 13.6 7.9% 17.0 9.7% 17.4 9.1% 18.6 1.6%

Gross Property, Plant & Equipment - 0.0% - 0.0% - 0.0% NA
Accumulated depreciation 2.9 1.7% 2.9 1.6% 2.7 1.4% NA
Net Property, Plant & Equipment 2.9 1.7% 2.9 1.6% 2.7 1.4% 1,020.4 85.2%
Non-Current Assets
TOTAL ASSETS: $ 172.5 100.0% $ 175.9 100.0% $ 190.2 100.0% $ 1,198.1 100.0%

Current Liabilities
Income Taxes Payable - 0.0% 0.2 0.0% - 0.0% 8.2 0.7%
Long-term Debt 168.1 18.0% 247.2 23.0% 375.6 32.1% 383.5 32.0%
Preferred Stock - 0.0% - 0.0% - 0.0% - 0.0%
Common Equity 516.5 55.2% 563.2 52.4% 527.2 45.0% 536.9 44.8%
Common Stock - 0.0% - 0.0% - 0.0% - 0.0%
Capital Surplus - 0.0% - 0.0% - 0.0% - 0.0%
Treasury Stock - 0.0% - 0.0% - 0.0% - 0.0%
TOTAL LIABILITIES & CAPITAL $ 936.4 100.0% $ 1,074.0 100.0% $ 1,171.6 100.0% $ 1,198.1 100.0%
Source Notes:
[S1] Source
Applebees
Business Valuation
($ Million's)
2004 2005 2006 9/5/2006
Net Sales $ 1,041.4 100.0% $ 1,110.3 100.0% $ 1,306.2 100.0% $ 1,336.7 100.0%
Cost of Goods Sold 583.4 56.0% 625.3 56.3% 741.2 56.7% 757.1 56.6%
GROSS PROFIT 458.0 44.0% 485.0 43.7% 565.0 43.3% 579.6 43.4%
Operating Expenses
Sales & Marketing - 0.0% - 0.0% - 0.0% - 0.0%
General & Administrative (8.0) -0.8% 0.4 0.0% (1.5) -0.1% (0.6) 0.0%
Other Operating Expenses - 0.0% - 0.0% - 0.0% - 0.0%
EBITDA [D2] 466.0 44.7% 484.6 43.6% 566.5 43.4% 580.2 43.4%
EBIT [D3] 408.1 39.2% 417.7 37.6% 495.1 37.9% 507.5 38.0%
Non-Operating Expense/(Income) (5.9) -0.6% (2.7) -0.2% (0.9) -0.1% (1.0) -0.1%
Non-Recurring Expense/(Income) 8.0 0.8% (0.4) 0.0% 1.5 0.1% 0.6 0.0%
EBT [D4] 402.3 38.6% 416.5 37.5% 481.8 36.9% 492.8 36.9%
Income Taxes 60.7 5.8% 52.6 4.7% 50.0 3.8% 49.6 3.7%
NET INCOME $ 341.6 32.8% $ 363.9 32.8% $ 431.8 33.1% $ 443.2 33.2%
SUPPLEMENTAL DATA:

As a % of Revenues 15% 15% 13% 13%
MARGIN SUMMARY:
GROSS MARGIN [D5] 44% 44% 43% 43%
NET MARGIN [D7] 33% 33% 33% 33%
Definitions:

Source Notes:
[S1] Source
Applebees
Business Valuation
RATIO ANALYSIS
2004 2005 2006 9/5/2006

LIQUIDITY ANALYSIS
Quick ratio 0.3 0.3 0.3 0.2
OWC/sales -3% -3% -2% -4%
Trade cycle (9) (14) (8) (9)
LEVERAGE ANALYSIS
Net fixed assets/total capital - - - 1.11

OPERATING ANALYSIS
EBT/EBIT 99% 100% 97% 97%
EBIT/Sales 39% 38% 38% 38%
Sales/Assets 6.0 6.3 6.9 1.1
Source Notes:
[S1] Source
Footnotes:
Workpaper xi, Page 1 of 3 Exhibit 4
Applebees
Business Valuation
Valuation as of December 31, 2006 RARE Hospitality International, Inc.
($ Millions)
BALANCE SHEETS
ASSETS 2004 2005 2006 10/1/2006

Current Assets
Inventories 11.8 6.9% 14.5 9.7% 16.3 9.6% 15.7 2.4%

Accumulated depreciation - 0.0% - 0.0% - 0.0% NA
Net Property, Plant & Equipment - 0.0% - 0.0% - 0.0% 494.4 76.3%
Non-Current Assets
TOTAL ASSETS: $ 169.8 100.0% $ 149.3 100.0% $ 170.0 100.0% $ 647.7 100.0%

Current Liabilities
Income Taxes Payable - 0.0% 1.2 0.2% 3.0 0.4% 4.5 0.7%
Long-term Debt 37.1 6.6% 39.0 6.5% 166.3 23.9% 40.5 6.3%
Preferred Stock - 0.0% - 0.0% - 0.0% - 0.0%
Common Equity 399.1 71.0% 424.3 70.6% 359.6 51.7% 463.6 71.6%
Common Stock - 0.0% - 0.0% - 0.0% - 0.0%
Capital Surplus - 0.0% - 0.0% - 0.0% - 0.0%
Treasury Stock - 0.0% - 0.0% - 0.0% - 0.0%
Source Notes:
[S1] Source
Applebees
Business Valuation
($ Million's)
2004 2005 2006 10/1/2006
Net Sales $ 717.5 100.0% $ 839.3 100.0% $ 986.9 100.0% $ 1,046.6 100.0%
GROSS PROFIT 453.2 63.2% 531.6 63.3% 625.0 63.3% 663.8 63.4%
Operating Expenses
Sales & Marketing 1.2 0.2% (0.8) -0.1% (10.6) -1.1% (8.1) -0.8%
General & Administrative (2.1) -0.3% 0.2 0.0% 5.7 0.6% (0.1) 0.0%
EBITDA [D2] 454.1 63.3% 532.2 63.4% 629.9 63.8% 672.0 64.2%
EBIT [D3] 424.5 59.2% 497.1 59.2% 592.8 60.1% 630.0 60.2%
EBT [D4] 422.3 58.9% 494.6 58.9% 585.3 59.3% 619.3 59.2%
Income Taxes 22.8 3.2% 25.1 3.0% 23.9 2.4% 22.8 2.2%
NET INCOME $ 399.2 55.6% $ 469.3 55.9% $ 561.3 56.9% $ 596.4 57.0%
SUPPLEMENTAL DATA:

As a % of Revenues 14% 12% 12% 11%
MARGIN SUMMARY:
GROSS MARGIN [D5] 63% 63% 63% 63%
NET MARGIN [D7] 56% 56% 57% 57%
Definitions:

Source Notes:
[S1] Source
Applebees
Business Valuation
RATIO ANALYSIS
2004 2005 2006 10/1/2006

LIQUIDITY ANALYSIS
Quick ratio 0.7 0.3 0.4 0.2
OWC/sales 6% 1% -1% 0%
Trade cycle (24) (12) (12) (8)
LEVERAGE ANALYSIS

OPERATING ANALYSIS
Net fixed asset turnover n.a. n.a. n.a. 2.12
EBT/EBIT 100% 100% 99% 98%
EBIT/Sales 59% 59% 60% 60%
Sales/Assets 4.2 5.6 5.8 1.6
Source Notes:
[S1] Source
Footnotes:
EXHIBIT 4A
Exhibit 4A illustrates how the financial statements should be normalized.

, Page 1 of 3 Exhibit 4A
Applebees
Business Valuation
($ Millions)
BALANCE SHEETS
ASSETS 2004 2005 2006 8/27/2006

Current Assets
Inventories 198.8 7.2% 235.4 8.0% 198.7 6.6% 208.7 6.8%
Other Current Assets 80.5 2.9%
% 92.6 3.2%
% 99.5 3.3%
% 110.2 3.6%
%

Accumulated depreciation (1,528.7) -55.0%
% (1,664.7) -56.7%
% (1,782.5) -59.2%
% NA %
Non-Current Assets
Intangible Assets 54.5 2.0% 55.7 1.9% 56.0 1.9% - 0.0%
Other Non-Current Assets 128.9 4.6%
% 123.3 4.2%
% 130.6 4.3%
% 184.6 6.0%
%
TOTAL ASSETS: $ 2,780.4 100.0% $ 2,937.8 100.0% $ 3,010.3 100.0% $ 3,060.2 100.0%

Current Liabilities
Other Current Liabilities 445.6 16.0%
% 501.1 17.1%
% 554.2 18.4%
% 513.9 16.8%
%
Total Current Liabilities 683.5 24.6% 1,044.6 35.6% 1,026.1 34.1% 1,036.5 33.9%
Long-term Debt 653.3 23.5% 350.3 11.9% 494.7 16.4% 493.9 16.1%
Minority Interest - 0.0%
% - 0.0%
% - 0.0%
% - 0.0%
%
Preferred Stock - 0.0% - 0.0% - 0.0% - 0.0%
Common Equity 1,175.3 42.3% 1,273.0 43.3% 1,229.8 40.9% 1,264.6 41.3%
Common Stock - 0.0% - 0.0% - 0.0% - 0.0%
Capital Surplus - 0.0% - 0.0% - 0.0% - 0.0%
Treasury Stock - 0.0% - 0.0% - 0.0% - 0.0%
Source Notes:
[S1] Source
Exhibit 4A
, Page 2 of 3
Applebees
Business Valuation
($ Millions) Unadjusted Operating Expense $1,027 Unadjusted Operating Expense $1,037
Less: Normalized Adjustment 500 Less: Normalized Adjustment 500
INCOME STATEMENTS Normalized Operating Expense $ 527 Normalized Operating Expense $ 537 [D1]
2004 2005 2006 8/27/2006
Net Sales $ 5,003.4 100.0% $ 5,278.1 100.0% $ 5,720.6 100.0% $ 5,767.3 100.0%
GROSS PROFIT 1,100.5 22.0% 1,182.3 22.4% 1,293.1 22.6% 1,311.5 22.7%
Operating Expenses
Sales & Marketing - 0.0% - 0.0% - 0.0% - 0.0%
General & Administrative - 0.0% - 0.0% - 0.0% - 0.0%
EBITDA [D2] 628.4 12.6% 684.8 13.0% 765.8 13.4% 774.8 13.4%
EBIT [D3] 418.4 8.4% 471.6 8.9% 544.3 9.5% 550.7 9.5%
EBT [D4] 332.8 6.7% 424.0 8.0% 482.5 8.4% 485.0 8.4%
Income Taxes 105.6 2.1% 133.3 2.5% 144.3 2.5% 143.9 2.5%
NET INCOME $ 227.2 4.5% $ 290.7 5.5% $ 338.2 5.9% $ 341.1 5.9%
SUPPLEMENTAL DATA:

MARGIN SUMMARY:
GROSS MARGIN [D5] 22% 22% 23% 23%
NET MARGIN [D7] 5% 6% 6% 6%
Definitions:

Source Notes:
[S1] Source
Exhibit 4A
, Page 3 of 3
Applebees
Business Valuation
RATIO ANALYSIS
2004 2005 2006 8/27/2006

LIQUIDITY ANALYSIS
Quick ratio 0.1 0.1 0.1 0.1
OWC/sales -7% -12% -11% -11%
Trade cycle 5 7 - 5
LEVERAGE ANALYSIS

OPERATING ANALYSIS
EBT/EBIT 80% 90% 89% 88%
EBIT/Sales 8% 9% 10% 10%
Sales/Assets 1.8 1.8 1.9 1.9
Source Notes:
[S1] Source
Footnotes:

Applebees
Business Valuation
($ Millions)
BALANCE SHEETS
ASSETS 2004 2005 2006 9/27/2006

Current Assets
Inventories 38.1 1.7% 48.6 2.3% 40.3 1.8% 38.2 1.7%
% 178.9 8.3%
% 93.9 4.2%
% 91.3 4.1%
%

Accumulated depreciation (823.1) -36.5%
% (925.0) -42.9%
% (1,043.1) -46.9%
% NA %
Non-Current Assets
% 71.9 3.3%
% 41.3 1.9%
% 47.6 2.1%
%
TOTAL ASSETS: $ 2,254.4 100.0% $ 2,156.0 100.0% $ 2,221.8 100.0% $ 2,243.0 100.0%

Current Liabilities
% 272.4 12.6%
% 314.5 14.2%
% 293.3 13.1%
%
Long-term Debt 639.3 28.4% 406.5 18.9% 500.5 22.5% 504.9 22.5%
% - 0.0%
% - 0.0%
% - 0.0%
%
Preferred Stock - 0.0% - 0.0% - 0.0% - 0.0%
Common Equity 1,010.4 44.8% 1,100.3 51.0% 1,075.8 48.4% 1,097.3 48.9%
Common Stock - 0.0% - 0.0% - 0.0% - 0.0%
Capital Surplus - 0.0% - 0.0% - 0.0% - 0.0%
Treasury Stock - 0.0% - 0.0% - 0.0% - 0.0%
Source Notes:
[S1] Source
Exhibit 4A
, Page 2 of 3
Applebees
Business Valuation
($ Millions)
No Adjustment Necessary No Adjustment Necessary
2004 2005 2006 9/27/2006
Net Sales $ 3,541.0 100.0% $ 3,749.5 100.0% $ 4,151.3 100.0% $ 4,215.3 100.0%
GROSS PROFIT 635.9 18.0% 613.2 16.4% 725.8 17.5% 741.7 17.6%
Operating Expenses
Sales & Marketing - 0.0% - 0.0% - 0.0% - 0.0%
EBITDA [D2] 485.3 13.7% 460.1 12.3% 518.7 12.5% 531.5 12.6%
EBIT [D3] 317.5 9.0% 280.2 7.5% 328.5 7.9% 339.8 8.1%
Non-Operating Expense/(Income) 1.7 0.0% 1.5 0.0% (1.7) 0.0% (2.3) -0.1%
EBT [D4] 235.1 6.6% 191.5 5.1% 305.3 7.4% 317.6 7.5%
Income Taxes 82.9 2.3% 33.1 0.9% 91.4 2.2% 94.5 2.2%
NET INCOME $ 152.2 4.3% $ 158.4 4.2% $ 213.9 5.2% $ 223.1 5.3%
SUPPLEMENTAL DATA:

MARGIN SUMMARY:
GROSS MARGIN [D5] 18% 16% 17% 18%
NET MARGIN [D7] 4% 4% 5% 5%
Definitions:

Source Notes:
[S1] Source
Exhibit 4A
, Page 3 of 3
Applebees
Business Valuation
RATIO ANALYSIS
2004 2005 2006 9/27/2006

LIQUIDITY ANALYSIS
Quick ratio 0.7 0.2 0.2 0.2
OWC/sales 1% -3% -6% -6%
Trade cycle (4) (5) (7) (7)
LEVERAGE ANALYSIS

OPERATING ANALYSIS
EBT/EBIT 74% 68% 93% 94%
Sales/Assets 1.6 1.7 1.9 1.9
Source Notes:
[S1] Source
Footnotes:

Applebees
Business Valuation
($ Millions)
BALANCE SHEETS
ASSETS 2004 2005 2006 6/30/2006

Current Assets
Inventories 63.4 3.7% 68.5 3.4% 87.1 3.9% 67.2 3.2%
% 90.7 4.5%
% 80.2 3.6%
% 42.7 2.1%
%

Accumulated depreciation (533.4) -30.8%
% (645.9) -32.1%
% (776.6) -34.4%
% NA %
Non-Current Assets
% 202.3 10.1%
% 202.6 9.0%
% 248.5 12.0%
%
TOTAL ASSETS: $ 1,733.4 100.0% $ 2,009.5 100.0% $ 2,258.6 100.0% $ 2,076.6 100.0%

Current Liabilities
% 300.4 14.9%
% 322.6 14.3%
% 205.5 9.9%
%
Long-term Debt 90.2 5.2% 121.9 6.1% 209.6 9.3% 219.2 10.6%
Deferred Taxes & ITC - 0.0% - 0.0% - 0.0% - 0.0%
Minority Interest 48.1 2.8%
% 44.3 2.2%
% 36.9 1.6%
% 43.0 2.1%
%
TOTAL LIABILITIES 686.3 39.6% 865.1 43.1% 1,037.4 45.9% 857.8 41.3%
Preferred Stock - 0.0% - 0.0% - 0.0% - 0.0%
Common Equity 1,047.1 60.4% 1,144.4 56.9% 1,221.2 54.1% 1,218.8 58.7%
Common Stock - 0.0% - 0.0% - 0.0% - 0.0%
Capital Surplus - 0.0% - 0.0% - 0.0% - 0.0%
Treasury Stock - 0.0% - 0.0% - 0.0% - 0.0%
Source Notes:
[S1] Source
Applebees
Business Valuation
($ Millions) Unadjusted Net Sales $4,191 Unadjusted Net Sales $4,020
Less: Normalized Adjustment 250 Less: Normalized Adjustment 250
INCOME STATEMENTS Normalized Net Sales $ 3,941 Normalized Net Sales $ 3,770 [D1]
2004 2005 2006 6/30/2006
Net Sales $ 3,216.0 100.0% $ 3,612.7 100.0% $ 3,941.0 100.0% $ 3,769.7 100.0%
GROSS PROFIT 1,195.7 37.2% 1,367.0 37.8% 1,438.3 36.5% 1,397.6 37.1%
Operating Expenses
Sales & Marketing - 0.0% - 0.0% - 0.0% - 0.0%
EBITDA [D2] 353.9 11.0% 386.1 10.7% 321.0 8.1% 341.0 9.0%
EBIT [D3] 249.1 7.7% 258.3 7.1% 169.4 4.3% 202.0 5.4%
Non-Operating Expense/(Income) 0.4 0.0% 5.8 0.2% (5.2) -0.1% (0.7) 0.0%
EBT [D4] 239.4 7.4% 221.6 6.1% 148.8 3.8% 175.1 4.6%
Income Taxes 78.6 2.4% 73.8 2.0% 41.8 1.1% 53.9 1.4%
NET INCOME $ 151.6 4.7% $ 146.6 4.1% $ 100.2 2.5% $ 120.8 3.2%
SUPPLEMENTAL DATA:

MARGIN SUMMARY:
GROSS MARGIN [D5] 37% 38% 36% 37%
NET MARGIN [D7] 5% 4% 3% 3%
Definitions:

Source Notes:
[S1] Source
Applebees
Business Valuation
RATIO ANALYSIS
2004 2005 2006 6/30/2006

LIQUIDITY ANALYSIS
Quick ratio 0.3 0.2 0.3 0.3
OWC/sales -6% -6% -6% -5%
Trade cycle - (5) (6) -
LEVERAGE ANALYSIS

OPERATING ANALYSIS
EBT/EBIT 96% 86% 88% 87%
Sales/Assets 1.9 1.8 1.7 1.8
Source Notes:
[S1] Source
Footnotes:

Applebees
Business Valuation
($ Millions)
BALANCE SHEETS
ASSETS 2004 2005 2006 9/5/2006

Current Assets
Inventories 13.6 7.9% 17.0 9.7% 17.4 9.1% 18.6 1.6%
% 18.0 10.2%
% 26.1 13.7%
% 23.8 2.0%
%

Accumulated depreciation 2.9 1.7%
% 2.9 1.6%
% 2.7 1.4%
% NA %
Net Property, Plant & Equipment 2.9 1.7% 2.9 1.6% 2.7 1.4% 1,020.4 85.2%
Non-Current Assets
% 88.5 50.3%
% 88.3 46.4%
% 90.2 7.5%
%
TOTAL ASSETS: $ 172.5 100.0% $ 175.9 100.0% $ 190.2 100.0% $ 1,198.1 100.0%

Current Liabilities
Income Taxes Payable - 0.0% 0.2 0.0% - 0.0% 8.2 0.7%
% 51.3 4.8%
% 66.9 5.7%
% 64.3 5.4%
%
Long-term Debt 168.1 18.0% 247.2 23.0% 375.6 32.1% 383.5 32.0%
% - 0.0%
% - 0.0%
% - 0.0%
%
Preferred Stock - 0.0% - 0.0% - 0.0% - 0.0%
Common Equity 516.5 55.2% 563.2 52.4% 527.2 45.0% 536.9 44.8%
Common Stock - 0.0% - 0.0% - 0.0% - 0.0%
Capital Surplus - 0.0% - 0.0% - 0.0% - 0.0%
Treasury Stock - 0.0% - 0.0% - 0.0% - 0.0%
TOTAL LIABILITIES & CAPITAL $ 936.4 100.0% $ 1,074.0 100.0% $ 1,171.6 100.0% $ 1,198.1 100.0%
Source Notes:
[S1] Source
Applebees
Business Valuation
($ Millions)
2004 2005 2006 9/5/2006
Net Sales $ 1,041.4 100.0% $ 1,110.3 100.0% $ 1,306.2 100.0% $ 1,336.7 100.0%
GROSS PROFIT 458.0 44.0% 485.0 43.7% 565.0 43.3% 579.6 43.4%
Operating Expenses
Sales & Marketing - 0.0% - 0.0% - 0.0% - 0.0%
General & Administrative (8.0) -0.8% 0.4 0.0% (1.5) -0.1% (0.6) 0.0%
EBITDA [D2] 466.0 44.7% 484.6 43.6% 566.5 43.4% 580.2 43.4%
EBIT [D3] 408.1 39.2% 417.7 37.6% 495.1 37.9% 507.5 38.0%
Non-Operating Expense/(Income) (5.9) -0.6% (2.7) -0.2% (0.9) -0.1% (1.0) -0.1%
Non-Recurring Expense/(Income) 8.0 0.8% (0.4) 0.0% 1.5 0.1% 0.6 0.0%
EBT [D4] 402.3 38.6% 416.5 37.5% 481.8 36.9% 492.8 36.9%
Income Taxes 60.7 5.8% 52.6 4.7% 50.0 3.8% 49.6 3.7%
NET INCOME $ 341.6 32.8% $ 363.9 32.8% $ 431.8 33.1% $ 443.2 33.2%
SUPPLEMENTAL DATA:

As a % of Revenues 15% 15% 13% 13%
MARGIN SUMMARY:
GROSS MARGIN [D5] 44% 44% 43% 43%
NET MARGIN [D7] 33% 33% 33% 33%
Definitions:

Source Notes:
[S1] Source
Applebees
Business Valuation
RATIO ANALYSIS
2004 2005 2006 9/5/2006

LIQUIDITY ANALYSIS
Quick ratio 0.3 0.3 0.3 0.2
OWC/sales -3% -3% -2% -4%
Trade cycle (9) (14) (8) (9)
LEVERAGE ANALYSIS

OPERATING ANALYSIS
EBT/EBIT 99% 100% 97% 97%
EBIT/Sales 39% 38% 38% 38%
Sales/Assets 6.0 6.3 6.9 1.1
Source Notes:
[S1] Source
Footnotes:

Applebees
Business Valuation
($ Millions)
BALANCE SHEETS
ASSETS 2004 2005 2006 10/1/2006

Current Assets
Inventories 11.8 6.9% 14.5 9.7% 16.3 9.6% 15.7 2.4%
% 63.2 42.3%
% 55.4 32.6%
% 68.3 10.5%
%

Accumulated depreciation - 0.0%
% - 0.0%
% - 0.0%
% NA %
Net Property, Plant & Equipment - 0.0% - 0.0% - 0.0% 494.4 76.3%
Non-Current Assets
% 13.1 8.8%
% 19.0 11.2%
% 25.8 4.0%
%
TOTAL ASSETS: $ 169.8 100.0% $ 149.3 100.0% $ 170.0 100.0% $ 647.7 100.0%

Current Liabilities
Income Taxes Payable - 0.0% 1.2 0.2% 3.0 0.4% 4.5 0.7%
% 74.0 12.3%
% 96.8 13.9%
% 77.2 11.9%
%
Long-term Debt 37.1 6.6% 39.0 6.5% 166.3 23.9% 40.5 6.3%
Minority Interest 1.3 0.2%
% 1.2 0.2%
% 1.0 0.1%
% 1.1 0.2%
%
Preferred Stock - 0.0% - 0.0% - 0.0% - 0.0%
Common Equity 399.1 71.0% 424.3 70.6% 359.6 51.7% 463.6 71.6%
Common Stock - 0.0% - 0.0% - 0.0% - 0.0%
Capital Surplus - 0.0% - 0.0% - 0.0% - 0.0%
Treasury Stock - 0.0% - 0.0% - 0.0% - 0.0%
Source Notes:
[S1] Source
Applebees
Business Valuation
($ Millions)
2004 2005 2006 10/1/2006
Net Sales $ 717.5 100.0% $ 839.3 100.0% $ 986.9 100.0% $ 1,046.6 100.0%
GROSS PROFIT 453.2 63.2% 531.6 63.3% 625.0 63.3% 663.8 63.4%
Operating Expenses
Sales & Marketing 1.2 0.2% (0.8) -0.1% (10.6) -1.1% (8.1) -0.8%
General & Administrative (2.1) -0.3% 0.2 0.0% 5.7 0.6% (0.1) 0.0%
EBITDA [D2] 454.1 63.3% 532.2 63.4% 629.9 63.8% 672.0 64.2%
EBIT [D3] 424.5 59.2% 497.1 59.2% 592.8 60.1% 630.0 60.2%
EBT [D4] 422.3 58.9% 494.6 58.9% 585.3 59.3% 619.3 59.2%
Income Taxes 22.8 3.2% 25.1 3.0% 23.9 2.4% 22.8 2.2%
NET INCOME $ 399.2 55.6% $ 469.3 55.9% $ 561.3 56.9% $ 596.4 57.0%
SUPPLEMENTAL DATA:

As a % of Revenues 14% 12% 12% 11%
MARGIN SUMMARY:
GROSS MARGIN [D5] 63% 63% 63% 63%
NET MARGIN [D7] 56% 56% 57% 57%
Definitions:

Source Notes:
[S1] Source
Applebees
Business Valuation
RATIO ANALYSIS
2004 2005 2006 10/1/2006

LIQUIDITY ANALYSIS
Quick ratio 0.7 0.3 0.4 0.2
OWC/sales 6% 1% -1% 0%
Trade cycle (24) (12) (12) (8)
LEVERAGE ANALYSIS

OPERATING ANALYSIS
Net fixed asset turnover - - - 2.12
EBT/EBIT 100% 100% 99% 98%
EBIT/Sales 59% 59% 60% 60%
Sales/Assets 4.2 5.6 5.8 1.6
Source Notes:
[S1] Source
Footnotes:

EXHIBIT 5
Exhibit 5 provides details on the market capitalization for guideline companies for
Applebee's.
Exhibit 5
Calculate Multiples based on Various Financial

Parameters and Select the Multiples to be applied to
the Subject Company
Based on the following Market Capitalization Data and the normalized financial statements
provided, calculate the following metrics for the selected guideline companies:
• Market Value of Equity (“MVE”)

• Market Value of Invested Capital (“MVIC”)
• Business Enterprise Value (“BEV”)
• BEV/Revenue
• BEV/EBITDA
• BEV/EBIT
Assumptions
• Brinker International’s Balance Sheet includes a jet for CEO’s personal use valued at
$2mm
• Ruby Tuesday’s Balance Sheet includes a rare coin collection in Inventory valued at
$6mm
Darden Restaurants Inc.

2006 LTM
Fully Diluted Weighted Average Shares ( 000's) 149 149
x Price Per Share $36.51 $40.20
= Market Capitalization
+ Book Value of Preferred Stock
+ Total Debt
= MVIC
- Cash & Short-Term Investments
- Non- Operating Assets
+ Non- Operating Liabilities
+ Minority Interest
= Business Enterprise Value
BEV / Sales
BEV / EBITDA
BEV / EBIT
Exhibit 5
Brinker International Inc.

2006 LTM
+ Total Debt
= MVIC
+ Minority Interest
BEV / Sales
BEV / EBITDA
BEV / EBIT
OSI Restaurant Partners, Inc..

2006 LTM
+ Total Debt
= MVIC
+ Minority Interest
BEV / Sales
BEV / EBITDA
BEV / EBIT
Exhibit 5
Ruby Tuesday, Inc.

2006 LTM
+ Total Debt
= MVIC
+ Minority Interest
BEV / Sales
BEV / EBITDA
BEV / EBIT
RARE Hospitality International Inc.

2006 LTM
+ Total Debt
= MVIC
+ Minority Interest
BEV / Sales
BEV / EBITDA
BEV / EBIT
EXHIBIT 6
Exhibit 6 includes all adjusted financial information as well as valuation measures.

Exhibit 6
Darden Restaurants Inc. First Day Traded
Ticker Symbol NYSE:DRI First Fiscal Year Presented 05/28/06 SIC Code Stock Price (Val Date) $40.20 Currency USD
Valuation Date 12/31/06 State of Residency FL Industry Name Restaurants 52 Week High 44.40 Conversion Mode H
Latest Fiscal Year End 5/27/2007 Stock Exchange NYSE S&P Rating Unadjusted Operating Expense $1,027 52 Week Low Unadjusted Operating Expense $1,037 32.90 Filing Version LFR
Latest Twelve Months / Quarter 5/27/2007 Tax Rate 29.00% Employees (Actual) 157,300.0 Less: Normalization Adjustment 500 Avg. Volume (Actual) Less: Normalization Adjustment 500 1,000,000 Filings Date Comparison F
Normalized Operating Expense $ 527 Normalized Operating Expense $ 537 1st Fiscal Year A2006
Darden Restaurants, Inc. engages in the ownership and operation of casual dining restaurants in the United States and Canada. The company operates restaurants under the names Red Lobster, Olive Garden, Bahama Breeze, Smokey Bones, and Seasons 52. As of May 5, 2007, it operated approximately 1,400 Red Lobster, Olive Garden, Bahama Breeze, Smokey Bones, and Seasons 52 restau
# COMPANY DESCRIPTION 996 997 998 999 1000 2000 996 997 998 999 1000 2000
1 Darden Restaurants, Inc. engages in the ownership and operation of casual dining restaurants in th INCOME STATEMENT 2002 2003 2004 2005 2006 8/27/2006 2002 2003 2004 2005 2006 08/27/06
2 United States and Canada. The company operates restaurants under the names Red Lobster, Oliv Net Sales $4,367 $4,655 $5,003 $5,278 $5,721 $5,767 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
3 Garden, Bahama Breeze, Smokey Bones, and Seasons 52. As of May 5, 2007, it operated approximately 1,40 Cost of Goods Sold with D&A 3,560 3,839 4,113 4,309 4,649 4,680 81.5% 82.5% 82.2% 81.6% 81.3% 81.1%
4 Red Lobster, Olive Garden, Bahama Breeze, Smokey Bones, and Seasons 52 restaurants. The company wa Depreciation & Amortization 166 191 210 213 222 224 3.8% 4.1% 4.2% 4.0% 3.9% 3.9%
5 founded in 1968 and is based in Orlando, Florida Cost of Goods Sold w/o D&A 3,395 3,648 3,903 4,096 4,428 4,456 77.7% 78.4% 78.0% 77.6% 77.4% 77.3%
6 Gross Income 972 1,007 1,101 1,182 1,293 1,312 22.3% 21.6% 22.0% 22.4% 22.6% 22.7%
7 Operating Expenses 417 432 472 498 527 537 9.6% 9.3% 9.4% 9.4% 9.2% 9.3%
8 EBITDA 555 575 628 685 766 775 12.7% 12.4% 12.6% 13.0% 13.4% 13.4%
Depreciation & Amortization 166 191 210 213 222 224 3.8% 4.1% 4.2% 4.0% 3.9% 3.9%
996 997 998 999 1000 500 EBIT 389 384 418 472 544 551 8.9% 8.3% 8.4% 8.9% 9.5% 9.5%
MARKET CAPITALIZATION 2002 2003 2004 2005 2006 8/27/2006 Interest Expense (37) (43) (44) (43) (43) (42) -0.8% -0.9% -0.9% -0.8% -0.8% -0.7%
Market Capitalization of Equity 5/26/2002 5/25/2003 5/30/2004 5/29/2005 5/28/2006 Nonoperating Income (Expense) - - - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
- Equity in Affiliates - - - - 500 -
Currency Exchange Gains (Loss) - - - - - -
Other Non-Operating Inc. (Exp.) - - - - - -
Fully Diluted Weighted Average Shares ( 0 177 170 163 157 149 149 Nonrecurring Income (Expense) 3 (4) (42) (5) (19) (23) 0.1% -0.1% -0.8% -0.1% -0.3% -0.4%
x Price Per Share $25.00 $18.40 $22.50 $32.80 $36.51 $40.20 Pretax Income 355 338 333 424 483 485 8.1% 7.3% 6.7% 8.0% 8.4% 8.4%
= Market Capitalization 4,435 3,122 3,677 5,146 5,433 5,982 Total Income Taxes 123 112 106 133 144 144 2.8% 2.4% 2.1% 2.5% 2.5% 2.5%
+ Book Value of Preferred Stock - - - - - - Minority Interest - - - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
+ Total Debt 663 658 668 650 689 724 Net Income (Loss) Before XO 233 226 227 291 338 341 5.3% 4.9% 4.5% 5.5% 5.9% 5.9%
= MVIC 5,098 3,781 4,344 5,797 6,121 6,706 +/- XO Items (Net of Tax Effects) - - - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
U.S. GAAP Adjustment - - - - - -
Earnings of Discontinued Ops. - - - - - -
Extraord. Item & Account. Change - - - - - -
- Cash & Short-Term Investments 163 49 37 43 42 46 Net Income (Loss) $ 233 $ 226 $ 227 $ 291 $ 338 $ 341 5.3% 4.9% 4.5% 5.5% 5.9% 5.9%
- Non- Operating Assets - - - - - -
+ Non- Operating Liabilities - - - - - - Net Income (Excluding Non Operating and $ 230 $ 230 $ 269 $ 295 $ 357 $ 365
+ Minority Interest - - - - - - Net Income (Excluding after tax Non Oper $ 231 $ 229 $ 256 $ 294 $ 351 $ 358
= Business Enterprise Value $ 4,935 $ 3,732 $ 4,308 $ 5,754 $ 6,079 $ 6,660
VALUATION MEASURES 996 997 998 999 1000 2000 996 997 998 999 1000 2000
CASH FLOWS 2002 2003 2004 2005 2006 08/27/06 2002 2003 2004 2005 2006 08/27/06
Common Shares Outstanding (000s) 173.2 168.3 161.0 156.7 148.2 146.8 Depreciation & Amortization $ 166 $ 191 $ 210 $ 213 $ 222 $ 224 3.8% 4.1% 4.2% 4.0% 3.9% 3.9%
Capital Expenditures (318) (423) (354) (329) (338) (353) -7.3% -9.1% -7.1% -6.2% -5.9% -6.1%
BEV / Sales 1.1 0.8 0.9 1.1 1.1 1.2

BEV / EBITDA 8.9 6.5 6.9 8.4 7.9 8.6 Cash Flows from Operations 508 509 525 583 717 626 11.6% 10.9% 10.5% 11.0% 12.5% 10.8%
BEV / EBIT 12.7 9.7 10.3 12.2 11.2 12.1 Cash Flows from Investing (374) (420) (343) (313) (325) (223) -8.6% -9.0% -6.9% -5.9% -5.7% -3.9%
Cash Flows from Financing (43) (193) (194) (264) (393) (601) -1.0% -4.1% -3.9% -5.0% -6.9% -10.4%
Earnings Per Share 1.31 1.33 1.39 1.85 2.27 2.29 Exchange Rate Effect - - - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Book Value Per Share 6.36 6.66 7.19 8.11 8.26 8.50 Change in Cash $ 91 $ (104) $ (12) $ 6 $ (0) $ (199) 2.1% -2.2% -0.2% 0.1% 0.0% -3.5%
MVE to Sales 1.0 0.7 0.7 1.0 0.9 1.0 996 997 998 999 1000 Q 996 997 998 999 1000 Q
MVE to Earnings (Excludes Non Operating 18.5 13.4 14.2 17.4 15.3 16.6 BALANCE SHEET 2002 2003 2004 2005 2006 08/27/06 2002 2003 2004 2005 2006 08/27/06
MVE to Book 3.8 2.7 3.1 4.0 4.4 4.7 ASSETS
Cash & Short-Term Investments $162.80 $48.60 $36.70 $42.80 $42.30 $45.60 6.4% 1.8% 1.3% 1.5% 1.4% 1.5%
Net Receivables 29 29 30 37 37 62 1.2% 1.1% 1.1% 1.2% 1.2% 2.0%
Dividend Payout Ratio Inventories 172 174 199 235 199 209 6.8% 6.5% 7.2% 8.0% 6.6% 6.8%
Dividend per Share 0.1 0.1 0.1 0.4 0.5 0.2 Other Current Assets 79 74 81 93 100 110 3.1% 2.8% 2.9% 3.2% 3.3% 3.6%
Dividend Yield - - - - - - Total Current Assets 443 326 346 407 378 426 17.5% 12.2% 12.5% 13.9% 12.5% 13.9%
FINANCIAL RATIO ANALYSIS Net PP&E 1,927 2,157 2,251 2,352 2,446 2,449 76.2% 81.0% 80.9% 80.0% 81.3% 80.0%
Return on Assets 15% 14% 15% 16% 18% 18% Total Long-Term Investments - - - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Return on Equity 21% 20% 19% 23% 28% 27% Intangibles 19 55 55 56 56 - 0.8% 2.1% 2.0% 1.9% 1.9% 0.0%
Return on Invested Capital 8% 10% 10% 8% 9% 8% Other Assets 140 127 129 123 131 185 5.5% 4.8% 4.6% 4.2% 4.3% 6.0%
Total Long-Term Assets 2,086 2,339 2,434 2,531 2,633 2,634 82.5% 87.8% 87.5% 86.1% 87.5% 86.1%
Asset Turnover 1.7 1.7 1.8 1.8 1.9 1.9 Total Assets $2,529.70 $2,664.60 $2,780.30 $2,937.80 $3,010.20 $3,060.20 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Receivables Turnover 150.1 160.5 165.1 144.6 154.2 93.3
Inventory Turnover 19.7 21.0 19.6 17.4 22.3 21.4 LIABILITIES & SHAREHOLDERS' EQUITY
Debt in Current Liabilities $0.00 $0.00 $14.50 $299.90 $193.90 $230.00 0.0% 0.0% 0.5% 10.2% 6.4% 7.5%
Average Collection Period 2.4 2.3 2.2 2.5 2.4 3.9 Accounts Payable 160 176 175 191 213 196 6.3% 6.6% 6.3% 6.5% 7.1% 6.4%
Days Inventory 18.5 17.4 18.6 21.0 16.4 17.1 Income Taxes Payable 69 68 49 52 65 97 2.7% 2.6% 1.8% 1.8% 2.2% 3.2%
Days Payable 17.2 17.6 16.3 17.0 17.6 16.0 Other Current Liabilities 372 396 446 501 554 514 14.7% 14.9% 16.0% 17.1% 18.4% 16.8%
Total Current Liabilities 601 640 684 1,045 1,026 1,037 23.8% 24.0% 24.6% 35.6% 34.1% 33.9%
Working Capital $ (158) $ (314) $ (337) $ (637) $ (649) $ (610)
Working Capital as % of Sales -3.6% -6.8% -6.7% -12.1% -11.3% -10.6% Long-Term Debt 663 658 653 350 495 494 26.2% 24.7% 23.5% 11.9% 16.4% 16.1%
Debt-Free Working Capital (158) (314) (323) (337) (455) (380) Deferred Taxes & Invest Tax Credit 118 110 133 115 91 87 4.7% 4.1% 4.8% 3.9% 3.0% 2.8%
Debt-Free Working Capital as % of Sales -3.6% -6.8% -6.4% -6.4% -7.9% -6.6% Minority Interest - - - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Debt & Cash-Free Working Capital (320) (363) (359) (380) (497) (426) Other Liabilities 20 127 136 155 169 179 0.8% 4.8% 4.9% 5.3% 5.6% 5.8%
Debt & Cash-Free W.C. as % of Sales -7.3% -7.8% -7.2% -7.2% -8.7% -7.4% Total Long-Term Liabilities 800 895 922 620 754 759 31.6% 33.6% 33.1% 21.1% 25.1% 24.8%
Total Liabilities 1,401 1,535 1,605 1,665 1,780 1,796 55.4% 57.6% 57.7% 56.7% 59.1% 58.7%
Current Ratio 0.7 0.5 0.5 0.4 0.4 0.4
Quick Ratio 0.5 0.2 0.2 0.2 0.2 0.2 Preferred Stock - - - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Interest Coverage Ratio (10.6) (9.0) (9.6) (10.9) (12.6) (13.0) Common Equity 1,129 1,130 1,175 1,273 1,230 1,265 44.6% 42.4% 42.3% 43.3% 40.9% 41.3%
Total Equity 1,129 1,130 1,175 1,273 1,230 1,265 44.6% 42.4% 42.3% 43.3% 40.9% 41.3%
Total Debt to Common Equity 58.7% 58.2% 56.8% 51.1% 56.0% 57.2% Total Liabilities & Equity $ 2,530 $ 2,665 $ 2,780 $ 2,938 $ 3,010 $ 3,060 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Total Debt to Market Cap. 14.9% 21.1% 18.2% 12.6% 12.7% 12.1%
Total Debt to MVIC 13.0% 17.4% 15.4% 11.2% 11.2% 10.8%
Exhibit 6
Brinker International Inc. First Day Traded
Ticker Symbol NYSE:EAT First Fiscal Year Presented 05/28/06 SIC Code Stock Price (Val Date) $30.20 Currency USD
Valuation Date 12/31/06 State of Residency TX Industry Name Restaurants 52 Week High 32.00 Conversion Mode H
Latest Fiscal Year End 6/28/2006 Stock Exchange NYSE S&P Rating 52 Week Low 21.00 Filing Version LFR
Latest Twelve Months / Quarter 3/28/2007 Tax Rate 28.80% Employees (Actual) 110,800.0 Avg. Volume (Actual) 1,700,000 Filings Date Comparison F
1st Fiscal Year A2006
No Adjustment
Brinker International, Inc. primarily engages in the ownership, operation, development, and franchising of restaurant brands in the United States. It operates restaurants under the names of Chili's Grill & Bar, Romano's Macaroni Grill,Necessary
Maggiano's Little Italy, and On The Border Mexican Grill
No Adjustment & Cantina. As of June 28, 2006, the company operated 1,622 jointly-developed and franchis
Necessary
1 Brinker International, Inc. primarily engages in the ownership, operation, development, and INCOME STATEMENT 2002 2003 2004 2005 2006 9/27/2006 2002 2003 2004 2005 2006 09/27/06
2 franchising of restaurant brands in the United States. It operates restaurants under the names of Chili's Net Sales $2,887 $3,285 $3,541 $3,750 $4,151 $4,215 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
3 Grill & Bar, Romano's Macaroni Grill, Maggiano's Little Italy, and On The Border Mexican Grill & Cost of Goods Sold with D&A 2,513 2,861 3,073 3,316 3,616 3,665 87.0% 87.1% 86.8% 88.4% 87.1% 87.0%
4 Cantina. As of June 28, 2006, the company operated 1,622 jointly-developed and franchised restaurants Depreciation & Amortization 130 161 168 180 190 192 4.5% 4.9% 4.7% 4.8% 4.6% 4.5%
5 located in 49 states, and Washington, D.C. Brinker International also has restaurants in the countries Cost of Goods Sold w/o D&A 2,383 2,700 2,905 3,136 3,426 3,474 82.5% 82.2% 82.0% 83.6% 82.5% 82.4%
6 of Australia, Bahrain, Canada, Egypt, Great Britain, Germany, Guatemala, Indonesia, Japan, Kuwait, Non-operating Asset Gross Income 504 585 636 613 726 742 17.5% 17.8% 18.0% 16.4% 17.5% 17.6%
7 Lebanon, Malaysia, Mexico, Oman, Peru, the Philippines, Puerto Rico, Qatar, Saudi Arabia, South (Jet) of $2mm for Operating Expenses 121 132 151 153 207 210 4.2% 4.0% 4.3% 4.1% 5.0% 5.0%
8 Korea, Taiwan, the United Arab Emirates, and Venezuela. The company was founded in 1977 and is CEO's personal use. EBITDA 383 454 485 460 519 532 13.3% 13.8% 13.7% 12.3% 12.5% 12.6%
996 997 998 999 1000 500 EBIT 253 293 318 280 329 340 8.8% 8.9% 9.0% 7.5% 7.9% 8.1%
Market Capitalization of Equity 6/30/2002 6/25/2003 6/30/2004 6/29/2005 6/28/2006 Nonoperating Income (Expense) (2) (4) (2) (2) 2 2 -0.1% -0.1% 0.0% 0.0% 0.0% 0.1%
Fully Diluted Weighted Average Shares ( 0 151 160 159 141 131 127 Nonrecurring Income (Expense) (9) (26) (69) (62) (2) (1) -0.3% -0.8% -2.0% -1.7% 0.0% 0.0%
= MVIC 3,641 4,221 4,258 4,153 3,593 4,333 +/- XO Items (Net of Tax Effects) - - (1) 2 (2) 5 0.0% 0.0% 0.0% 0.0% 0.0% 0.1%
- Non- Operating Assets - - - - 2 2
+ Non- Operating Liabilities - - - - - - Net Income (Excluding Non Operat $ 162 $ 197 $ 223 $ 222 $ 214 $ 222
+ Minority Interest - - - - - - Net Income (Excluding after tax No $ 158 $ 186 $ 198 $ 211 $ 214 $ 222
CASH FLOWS 2002 2003 2004 2005 2006 9/27/2006 2002 2003 2004 2005 2006 9/27/2006
BEV / Sales 1.3 1.3 1.1 1.1 0.9 1.0

Cash Flows from Financing 46 (105) 3 (331) (197) (196) 1.6% -3.2% 0.1% -8.8% -4.7% -4.7%
Book Value Per Share 6.48 7.03 6.37 7.79 8.22 8.66 Change in Cash $ (3) $ 23 $ 14 $ (5) $ 14 $ 16 -0.1% 0.7% 0.4% -0.1% 0.3% 0.4%
MVE to Sales 1.1 1.2 1.0 1.0 0.7 0.9 996 997 998 999 1000 Q 996 997 998 999 1000 Q
Net Receivables 42 36 38 44 53 45 2.3% 1.9% 1.7% 2.0% 2.4% 2.0%
Dividend per Share - - - - 0.3 0.1 Other Current Assets 68 74 98 179 94 91 3.8% 3.8% 4.4% 8.3% 4.2% 4.1%
FINANCIAL RATIO ANALYSIS Net PP&E 1,355 1,500 1,614 1,647 1,793 1,816 76.0% 77.3% 71.6% 76.4% 80.7% 80.9%
Return on Equity 15% 15% 15% 14% 20% 20% Intangibles 194 185 158 125 146 145 10.9% 9.5% 7.0% 5.8% 6.5% 6.5%
Days Inventory 3.3 3.3 4.8 5.7 4.3 4.0 Income Taxes Payable - 8 37 23 30 52 0.0% 0.4% 1.6% 1.1% 1.3% 2.3%
Total Current Liabilities 302 312 379 430 497 493 16.9% 16.1% 16.8% 19.9% 22.4% 22.0%
Working Capital $ (160) $ (144) $ 22 $ (117) $ (255) $ (258)
Working Capital as % of Sales -5.5% -4.4% 0.6% -3.1% -6.1% -6.1% Long-Term Debt 427 354 639 407 501 505 23.9% 18.2% 28.4% 18.9% 22.5% 22.5%
Debt-Free Working Capital (143) (126) 40 (115) (253) (256) Deferred Taxes & Invest Tax Credit 17 48 73 56 7 - 1.0% 2.4% 3.2% 2.6% 0.3% 0.0%
Debt-Free Working Capital as % of Sales -4.9% -3.8% 1.1% -3.1% -6.1% -6.1% Minority Interest - - - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total Liabilities 806 813 1,244 1,056 1,146 1,146 45.2% 41.9% 55.2% 49.0% 51.6% 51.1%
Current Ratio 0.5 0.5 1.1 0.7 0.5 0.5
Interest Coverage Ratio (19.0) (23.6) (27.6) (11.1) (14.3) (14.3) Common Equity 977 1,128 1,010 1,100 1,076 1,097 54.8% 58.1% 44.8% 51.0% 48.4% 48.9%
Total Equity 977 1,128 1,010 1,100 1,076 1,097 54.8% 58.1% 44.8% 51.0% 48.4% 48.9%
Exhibit 6
OSI Restaurant Partners, Inc. First Day Traded
Ticker Symbol IQ32561 First Fiscal Year Presented 05/28/06 SIC Code Stock Price (Val Date) $39.20 Currency USD
Valuation Date 12/31/06 State of Residency FL Industry Name Restaurants 52 Week High 48.30 Conversion Mode H
Latest Fiscal Year End 12/31/2006 Stock Exchange NYSE S&P Rating Unadjusted Net Sales $4,191 52 Week Low Unadjusted Net Sales $4,020
27.30 Filing Version LFR
Less: Normalized Adjustment 250
Latest Twelve Months / Quarter 3/31/2007 Tax Rate 28.00% Employees (Actual) 116,000.0 Avg. Volume (Actual)Less: Normalized Adjustment 250
- Filings Date Comparison F
Normalized Net Sales 3,941 Normalized Net Sales 3,770
#NA
1 INCOME STATEMENT 2002 2003 2004 2005 2006 6/30/2006 2002 2003 2004 2005 2006 06/30/06
OSI Restaurant Partners, Inc. engages in the development and operation of casual dining restaurant. As of December 31,
2 Net Sales $2,295 $2,672 $3,216 $3,613 $3,941 $3,770 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
2006, it had 1,408 system-wide restaurants, including 786 domestic Outback Steakhouses, 162 international Outback
3 Cost of Goods Sold with D&A 1,468 1,744 2,125 2,374 2,654 2,511 64.0% 65.3% 66.1% 65.7% 67.4% 66.6%
4
Steakhouses, 229 Carrabba’s Italian Grills, 119 Bonefish Grills, 45 Fleming’s Prime Steakhouse and Wine Bars, 23 Roy’s, Depreciation & Amortization 73 85 105 128 152 139 3.2% 3.2% 3.3% 3.5% 3.8% 3.7%
5 5 Lee Roy Selmon’s, 1 Blue Coral Seafood and Spirits, and 38 Cheeseburger in Paradise restaurants in the United States Cost of Goods Sold w/o D&A 1,394 1,659 2,020 2,246 2,503 2,372 60.8% 62.1% 62.8% 62.2% 63.5% 62.9%
6 and 20 countries internationally. The company was founded in 1987 as Multi-Venture Partners, Inc. and changed its name Gross Income 900 1,014 1,196 1,367 1,438 1,398 39.2% 37.9% 37.2% 37.8% 36.5% 37.1%
7 to Outback Steakhouse, Inc. in 1990. Further, the company changed its name to OSI Restaurant Partners, Inc. in 2006. OSI Operating Expenses 600 676 842 981 1,117 1,057 26.2% 25.3% 26.2% 27.2% 28.4% 28.0%
8 Restaurant Partners is headquartered in Tampa, Florida. EBITDA 300 338 354 386 321 341 13.1% 12.6% 11.0% 10.7% 8.1% 9.0%
996 997 998 999 1000 500 EBIT 227 253 249 258 169 202 9.9% 9.5% 7.7% 7.1% 4.3% 5.4%
MARKET CAPITALIZATION 2002 2003 2004 2005 2006 6/30/2006 Interest Expense 1 (0) (2) (5) (12) (7) 0.1% 0.0% -0.1% -0.1% -0.3% -0.2%
Market Capitalization of Equity 12/31/2002 12/31/2003 12/31/2004 12/31/2005 12/31/2006 Nonoperating Income (Expense) 4 5 (0) (6) 5 1 0.2% 0.2% 0.0% -0.2% 0.1% 0.0%
Fully Diluted Weighted Average Shares ( 0 79 78 78 77 76 76 Nonrecurring Income (Expense) (7) (5) (7) (26) (14) (21) -0.3% -0.2% -0.2% -0.7% -0.4% -0.5%
+ Book Value of Preferred Stock - - - - - - Minority Interest (2) 3 9 1 7 0 -0.1% 0.1% 0.3% 0.0% 0.2% 0.0%
= MVIC 2,760 3,524 3,694 3,368 3,257 3,283 +/- XO Items (Net of Tax Effects) (1) - - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
+ Minority Interest 43 58 48 44 37 43 Net Income (Excluding after tax No $ 148 $ 167 $ 166 $ 169 $ 113 $ 135
CASH FLOWS 2002 2003 2004 2005 2006 06/30/06 2002 2003 2004 2005 2006 06/30/06
BEV / Sales 1.1 1.3 1.1 0.9 0.8 0.9

Cash Flows from Financing (54) (132) (34) (43) (4) 11 -2.4% -4.9% -1.0% -1.2% -0.1% 0.3%
Book Value Per Share 12.29 12.82 13.51 14.96 16.03 15.99 Change in Cash $ 72 $ (85) $ (15) $ (3) $ 10 $ (11) 3.1% -3.2% -0.5% -0.1% 0.3% -0.3%
MVE to Sales 1.1 1.3 1.1 0.9 0.7 0.8 996 997 998 999 1000 Q 996 997 998 999 1000 Q
Net Receivables 12 16 21 31 50 39 0.9% 1.1% 1.2% 1.5% 2.2% 1.9%
Dividend per Share 0.1 0.5 0.5 0.5 0.5 0.1 Other Current Assets 27 32 66 91 80 43 2.0% 2.1% 3.8% 4.5% 3.6% 2.1%
FINANCIAL RATIO ANALYSIS Net PP&E 915 1,050 1,234 1,388 1,549 1,476 67.6% 71.2% 71.2% 69.1% 68.6% 71.1%
Return on Assets 17% 17% 14% 13% 8% 10% Total Long-Term Investments 38 31 16 21 26 25 2.8% 2.1% 0.9% 1.1% 1.2% 1.2%
Days Inventory 9.1 13.1 11.5 11.1 12.7 10.3 Income Taxes Payable 16 2 0 18 16 17 1.2% 0.2% 0.0% 0.9% 0.7% 0.8%
Working Capital $ 43 $ (82) $ (186) $ (219) $ (249) $ (183)
Working Capital as % of Sales 1.9% -3.1% -5.8% -6.1% -6.3% -4.8% Long-Term Debt 14 10 90 122 210 219 1.1% 0.7% 5.2% 6.1% 9.3% 10.6%
Debt-Free Working Capital 61 (33) (131) (156) (189) (105) Deferred Taxes & Invest Tax Credit 16 1 - - - - 1.2% 0.1% 0.0% 0.0% 0.0% 0.0%
Debt-Free Working Capital as % of Sales 2.7% -1.2% -4.1% -4.3% -4.8% -2.8% Minority Interest 43 58 48 44 37 43 3.2% 3.9% 2.8% 2.2% 1.6% 2.1%
Total Liabilities 379 469 686 865 1,037 858 28.0% 31.8% 39.6% 43.1% 45.9% 41.3%
Current Ratio 1.2 0.7 0.6 0.6 0.6 0.5
Interest Coverage Ratio 188.9 (842.0) (108.3) (53.8) (14.7) (28.5) Common Equity 974 1,005 1,047 1,144 1,221 1,219 72.0% 68.2% 60.4% 56.9% 54.1% 58.7%
Total Equity 974 1,005 1,047 1,144 1,221 1,219 72.0% 68.2% 60.4% 56.9% 54.1% 58.7%
Exhibit 6
Ruby Tuesday, Inc. First Day Traded
Ticker Symbol IQ346489 First Fiscal Year Presented 05/28/06 SIC Code Stock Price (Val Date) $27.40 Currency USD
Valuation Date 12/31/06 State of Residency TN Industry Name Restaurants 52 Week High 33.00 Conversion Mode H
Latest Fiscal Year End 6/5/2007 Stock Exchange NYSE S&P Rating 52 Week Low 21.00 Filing Version LFR
Latest Twelve Months / Quarter 6/5/2007 Tax Rate 30.80% Employees (Actual) 27,700.0 Avg. Volume (Actual) 1,300,000 Filings Date Comparison F
Ruby Tuesday, Inc., together with its subsidiaries, engages in the development, ownership, operation, and franchising of Ruby Tuesday brand casual dining restaurants. As of October 23, 2006, it owned, operated, or franchised 900 casual dining restaurants primarily in the United States, the Asia Pacific region, India, Kuwait, Puerto Rico, Canada, Mexico, Iceland, Eastern Europe, and
1 Ruby Tuesday, Inc., together with its subsidiaries, engages in the development, ownership, INCOME STATEMENT 2002 2003 2004 2005 2006 9/5/2006 2002 2003 2004 2005 2006 09/05/06
2 operation, and franchising of Ruby Tuesday brand casual dining restaurants. As of October 23, 2006, it owned, Net Sales $833 $914 $1,041 $1,110 $1,306 $1,337 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
3 operated, or franchised 900 casual dining restaurants primarily in the United States, the Asia Cost of Goods Sold with D&A 526 586 641 692 813 830 63.1% 64.1% 61.6% 62.3% 62.2% 62.1%
4 Pacific region, India, Kuwait, Puerto Rico, Canada, Mexico, Iceland, Eastern Europe, and Central and Depreciation & Amortization 37 49 58 67 71 73 4.4% 5.4% 5.6% 6.0% 5.5% 5.4%
5 South America. Ruby Tuesday was founded in 1920 and is based in Maryville, Tennessee. Cost of Goods Sold w/o D&A 489 536 583 625 741 757 58.7% 58.7% 56.0% 56.3% 56.7% 56.6%
Non-operating Asset (Rare
6 Gross Income 344 377 458 485 565 580 41.3% 41.3% 44.0% 43.7% 43.3% 43.4%
coin collection in
7 inventory) of $6mm Operating Expenses 196 193 224 262 329 342 23.5% 21.1% 21.5% 23.6% 25.2% 25.6%
8 EBITDA 148 185 234 223 236 238 17.8% 20.2% 22.5% 20.1% 18.0% 17.8%
996 997 998 999 1000 500 EBIT 111 135 176 156 164 165 13.3% 14.8% 16.9% 14.1% 12.6% 12.4%
MARKET CAPITALIZATION 2002 2003 2004 2005 2006 9/5/2006 Interest Expense 6 (2) (4) (4) (13) (15) 0.7% -0.3% -0.4% -0.4% -1.0% -1.1%
Market Capitalization of Equity 6/4/2002 6/3/2003 6/1/2004 5/31/2005 6/6/2006 Nonoperating Income (Expense) 1 3 6 3 1 1 0.1% 0.4% 0.6% 0.2% 0.1% 0.1%
Fully Diluted Weighted Average Shares ( 0 65 67 66 61 58 58 Nonrecurring Income (Expense) (30) (0) (8) 0 (2) (1) -3.6% 0.0% -0.8% 0.0% -0.1% 0.0%
= MVIC 1,486 1,818 2,055 1,800 1,943 1,964 +/- XO Items (Net of Tax Effects) (0) - - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
- Non- Operating Assets - - - - 6 6
+ Minority Interest - - - - - - Net Income (Excluding after tax No $ 77 $ 87 $ 111 $ 100 $ 101 $ 101
CASH FLOWS 2002 2003 2004 2005 2006 09/05/06 2002 2003 2004 2005 2006 09/05/06
BEV / Sales 1.7 2.0 2.0 1.6 1.5 1.5

Cash Flows from Financing (28) (21) (51) (15) (19) (23) -3.4% -2.2% -4.9% -1.3% -1.5% -1.7%
Book Value Per Share 5.14 6.03 7.89 9.19 9.15 9.32 Change in Cash $ 22 $ (24) $ 11 $ 0 $ 3 $ 9 2.7% -2.6% 1.0% 0.0% 0.2% 0.7%
MVE to Sales 1.7 1.8 1.8 1.4 1.2 1.2 996 997 998 999 1000 Q 996 997 998 999 1000 Q
Net Receivables 31 13 13 8 12 12 5.9% 1.6% 1.4% 0.8% 1.1% 1.0%
Dividend per Share - - - - 0.5 - Other Current Assets 15 18 15 18 26 24 2.9% 2.2% 1.6% 1.7% 2.2% 2.0%
FINANCIAL RATIO ANALYSIS Net PP&E 352 678 767 901 984 1,020 67.6% 82.0% 81.9% 83.9% 84.0% 85.2%
Total Long-Term Assets 431 774 875 1,011 1,093 1,128 82.9% 93.7% 93.4% 94.1% 93.3% 94.1%
Asset Turnover 1.6 1.1 1.1 1.0 1.1 1.1 Total Assets $520.30 $825.90 $936.40 $1,074.10 $1,171.60 $1,198.10 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Days Inventory 7.7 8.3 8.5 9.9 8.6 9.0 Income Taxes Payable - - - 0 - 8 0.0% 0.0% 0.0% 0.0% 0.0% 0.7%
Working Capital $ (2) $ (34) $ (33) $ (38) $ (30) $ (47)
Working Capital as % of Sales -0.2% -3.7% -3.2% -3.4% -2.3% -3.5% Long-Term Debt 8 207 168 247 376 384 1.5% 25.1% 18.0% 23.0% 32.1% 32.0%
Debt-Free Working Capital (1) (33) (33) (35) (28) (45) Deferred Taxes & Invest Tax Credit 21 28 46 51 50 47 4.0% 3.4% 4.9% 4.7% 4.2% 3.9%
Debt-Free Working Capital as % of Sales -0.1% -3.6% -3.1% -3.2% -2.2% -3.4% Minority Interest - - - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total Liabilities 186 422 420 511 644 661 35.7% 51.0% 44.8% 47.6% 55.0% 55.2%
Current Ratio 1.0 0.6 0.6 0.6 0.7 0.6
Interest Coverage Ratio 19.2 (58.8) (47.7) (36.3) (12.9) (10.9) Common Equity 334 404 517 563 527 537 64.3% 49.0% 55.2% 52.4% 45.0% 44.8%
Total Equity 334 404 517 563 527 537 64.3% 49.0% 55.2% 52.4% 45.0% 44.8%
Total Debt to Common Equity 2.5% 51.4% 32.6% 44.3% 71.5% 71.8% Total Liabilities & Equity $ 520 $ 826 $ 936 $ 1,074 $ 1,172 $ 1,198 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Exhibit 6
RARE Hospitality International Inc. First Day Traded
Ticker Symbol NASDAQNM:RARE First Fiscal Year Presented 05/28/06 SIC Code Stock Price (Val Date) $32.90 Currency USD
Valuation Date 12/31/06 State of Residency GA Industry Name Restaurants 52 Week High 34.90 Conversion Mode H
Latest Fiscal Year End 12/31/2006 Stock Exchange NasdaqNM S&P Rating 52 Week Low 25.00 Filing Version LFR
Latest Twelve Months / Quarter 4/1/2007 Tax Rate 32.30% Employees (Actual) 19,773.0 Avg. Volume (Actual) 600,000 Filings Date Comparison F
RARE Hospitality International, Inc. and its subsidiaries operate and franchise restaurants in the United States. It operates company-owned restaurants, joint venture restaurants, and franchised restaurants. As of June 21, 2007, the company owned, operated, and franchised 316 restaurants, including 286 LongHorn Steakhouse restaurants and 28 Capital Grille restaurants. RARE Hospita
1 RARE Hospitality International, Inc. and its subsidiaries operate and franchise restaurants in the INCOME STATEMENT 2002 2003 2004 2005 2006 10/1/2006 2002 2003 2004 2005 2006 10/01/06
2 United States. It operates company-owned restaurants, joint venture restaurants, and franchised Net Sales $585 $598 $718 $839 $987 $1,047 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
3 restaurants. As of June 21, 2007, the company owned, operated, and franchised 316 restaurants, including Cost of Goods Sold with D&A 237 240 294 343 399 425 40.5% 40.1% 41.0% 40.8% 40.4% 40.6%
4 286 LongHorn Steakhouse restaurants and 28 Capital Grille restaurants. RARE Hospitality Depreciation & Amortization 26 25 30 35 37 42 4.4% 4.1% 4.1% 4.2% 3.8% 4.0%
5 International also operates Hemenway’s Seafood Grille & Oyster Bar; and The Old Grist Mill Tavern restaurant. Cost of Goods Sold w/o D&A 211 215 264 308 362 383 36.1% 35.9% 36.8% 36.7% 36.7% 36.6%
6 The company was founded in 1981 and is based in Atlanta, Georgia. Gross Income 374 383 453 532 625 664 63.9% 64.1% 63.2% 63.3% 63.3% 63.4%
7 Operating Expenses 294 299 353 416 506 539 50.4% 50.0% 49.1% 49.6% 51.3% 51.5%
8 EBITDA 79 84 101 115 119 124 13.6% 14.1% 14.0% 13.7% 12.0% 11.9%
996 997 998 999 1000 500 EBIT 54 59 71 80 82 82 9.2% 9.9% 9.9% 9.6% 8.3% 7.9%
Market Capitalization of Equity 12/29/2002 12/28/2003 12/26/2004 12/25/2005 12/31/2006 Nonoperating Income (Expense) - - - - - - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Fully Diluted Weighted Average Shares ( 0 34 35 35 35 34 34 Nonrecurring Income (Expense) (2) - (1) (1) (5) (8) -0.3% 0.0% -0.1% -0.1% -0.5% -0.8%
= Market Capitalization 635 835 1,097 1,065 1,133 1,102 Total Income Taxes 16 19 23 25 24 23 2.7% 3.2% 3.2% 3.0% 2.4% 2.2%
+ Book Value of Preferred Stock - - - - - - Minority Interest 0 0 0 0 0 0 0.1% 0.1% 0.0% 0.0% 0.0% 0.0%
= MVIC 657 863 1,135 1,104 1,299 1,143 +/- XO Items (Net of Tax Effects) - 3 1 (1) (11) (8) 0.0% 0.5% 0.2% -0.1% -1.1% -0.8%
+ Minority Interest 1 1 1 1 1 1 Net Income (Excluding after tax No $ 35 $ 40 $ 47 $ 53 $ 53 $ 54
= Business Enterprise Value $ 627 $ 820 $ 1,082 $ 1,087 $ 1,263 $ 1,135
CASH FLOWS 2002 2003 2004 2005 2006 10/01/06 2002 2003 2004 2005 2006 10/01/06
BEV / Sales 1.1 1.4 1.5 1.3 1.3 1.1

Cash Flows from Financing (11) 5 8 (29) 11 3 -1.9% 0.9% 1.0% -3.4% 1.1% 0.3%
Book Value Per Share 8.75 10.12 11.27 12.19 10.45 13.84 Change in Cash $ (12) $ 7 $ (1) $ (7) $ 19 $ (2) -2.1% 1.1% -0.1% -0.9% 2.0% -0.2%
MVE to Sales 1.0 1.3 1.5 1.2 1.1 1.0 996 997 998 999 1000 Q 996 997 998 999 1000 Q
Net Receivables 11 11 13 16 16 15 2.7% 2.3% 2.2% 2.6% 2.3% 2.3%
Dividend per Share - - - - - - Other Current Assets 8 13 58 63 55 68 2.0% 2.7% 10.3% 10.5% 8.0% 10.5%
FINANCIAL RATIO ANALYSIS Net PP&E 300 361 392 452 525 494 77.0% 77.3% 69.8% 75.2% 75.5% 76.3%
Total Long-Term Assets 325 389 426 489 570 539 83.5% 83.4% 75.7% 81.4% 82.0% 83.3%
Asset Turnover 1.5 1.3 1.3 1.4 1.4 1.6 Total Assets $389.30 $467.00 $562.00 $600.90 $695.20 $647.70 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Days Inventory 24.7 16.7 16.3 17.2 16.4 15.0 Income Taxes Payable - - - 1 3 5 0.0% 0.0% 0.0% 0.2% 0.4% 0.7%
Working Capital $ 3 $ 4 $ 44 $ 6 $ (9) $ (3)
Working Capital as % of Sales 0.4% 0.6% 6.1% 0.8% -0.9% -0.3% Long-Term Debt 22 28 37 39 166 41 5.8% 5.9% 6.6% 6.5% 23.9% 6.3%
Debt-Free Working Capital 3 4 44 7 (9) (3) Deferred Taxes & Invest Tax Credit 1 8 10 4 1 - 0.3% 1.7% 1.8% 0.6% 0.2% 0.0%
Debt-Free Working Capital as % of Sales 0.5% 0.6% 6.1% 0.8% -0.9% -0.2% Minority Interest 1 1 1 1 1 1 0.4% 0.3% 0.2% 0.2% 0.1% 0.2%
Total Liabilities 89 115 163 177 336 184 22.9% 24.6% 29.0% 29.4% 48.3% 28.4%
Current Ratio 1.0 1.0 1.5 1.1 0.9 1.0
Interest Coverage Ratio (31.5) (59.4) (54.7) (42.2) (31.4) (33.0) Common Equity 300 352 399 424 360 464 77.1% 75.4% 71.0% 70.6% 51.7% 71.6%
Total Equity 300 352 399 424 360 464 77.1% 75.4% 71.0% 70.6% 51.7% 71.6%
Total Debt to Common Equity 7.5% 7.8% 9.3% 9.3% 46.3% 8.8% Total Liabilities & Equity $ 389 $ 467 $ 562 $ 601 $ 695 $ 648 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
EXHIBIT 7
Exhibit 7 provides examples of some ratio analyses.

Exhibit 7
Workpaper vi, Page 1 of 15

Applebees
Business Valuation
Ratios (Trends)
CURRENT RATIO
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. 1.28 1.29 1.12 1.40 1.36 1.70 1.3 1.3
Darden Restaurants Inc. C 2.5 2.6 4.1 4.5 3.1 2.2 3.9 3.3 Current Ratio
Brinker International Inc. C N/A 3.1 1.0 2.1 1.4 0.7 1.5 1.9
Osi Restaurant Partners, Inc. C 2.2 24.8 634.0 3.8 5.6 4.0 214.5 134.1 5.0
Ruby Tuesday, Inc. C N/A N/A N/A 85.0 N/A 2.3 85.0 85.0 4.5
Rare Hospitality International C N/A N/A N/A 12.1 5.4 3.5 8.8 8.8 4.0
3.5
3.0
Mean of positive #s 2.4 10.2 213.0 21.5 3.9 2.5 62.7 46.6 2.5
Mean 2.4 10.2 213.0 21.5 3.9 2.5 62.7 46.6 2.0
Median 2.4 3.1 4.1 4.5 4.2 2.3 8.8 8.8 1.5
High 2.5 24.8 634.0 85.0 5.6 4.0 214.5 134.1 1.0
Low 2.2 2.6 1.0 2.1 1.4 0.7 1.5 1.9 0.5
0.0
Low Quartile 2.3 2.8 2.6 3.8 2.6 2.2 3.9 3.3
2002 2003 2004 2005 2006 LTM
Upper Quartile 2.4 14.0 319.0 12.1 5.5 3.5 85.0 85.0
= Applebee'S International Inc. = Median
QUICK RATIO
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. - - - - - - - -
Darden Restaurants Inc. C 546.0 555.4 781.5 734.8 599.8 402.0 705.3 643.5 Quick Ratio
Brinker International Inc. C N/A 4,784.4 1,031.6 1,697.4 1,318.5 746.9 1,349.2 2,208.0
Osi Restaurant Partners, Inc. C 2,411.6 15,827.5 383,520.0 2,175.1 2,521.4 2,288.1 129,405.5 81,291.1 6000.0
Ruby Tuesday, Inc. C N/A N/A N/A 192,515.0 N/A 4,751.8 192,515.0 192,515.0
5000.0
Rare Hospitality International C N/A N/A N/A 32,259.2 13,027.3 8,664.7 22,643.3 22,643.3
4000.0
Mean of positive #s 1,478.8 7,055.8 128,444.4 45,876.3 4,366.8 3,370.7 69,323.7 59,860.2 3000.0
Mean 1,478.8 7,055.8 128,444.4 45,876.3 4,366.8 3,370.7 69,323.7 59,860.2
Median 1,478.8 4,784.4 1,031.6 2,175.1 1,920.0 2,288.1 22,643.3 22,643.3 2000.0
High 2,411.6 15,827.5 383,520.0 192,515.0 13,027.3 8,664.7 192,515.0 192,515.0 1000.0
Low 546.0 555.4 781.5 734.8 599.8 402.0 705.3 643.5
0.0
Low Quartile 1,012.4 2,669.9 906.5 1,697.4 1,138.8 746.9 1,349.2 2,208.0
2002 2003 2004 2005 2006 LTM
Upper Quartile 1,945.2 10,306.0 192,275.8 32,259.2 5,147.9 4,751.8 129,405.5 81,291.1
TIMES INTEREST EARNED
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 10.6 9.0 9.6 10.9 12.6 13.0 11.0 10.6 Times Interest Earned
Brinker International Inc. C 19.0 23.6 27.6 11.1 14.3 14.3 17.7 19.1
Osi Restaurant Partners, Inc. C (188.9) 842.0 108.3 53.8 14.7 28.5 58.9 166.0 900.0
Ruby Tuesday, Inc. C (19.2) 58.8 47.7 36.3 12.9 10.9 32.3 27.3 800.0
Rare Hospitality International C 31.5 59.4 54.7 42.2 31.4 33.0 42.8 43.9 700.0
600.0
Mean (29.4) 198.6 49.6 30.9 17.2 19.9 32.6 53.4 400.0
Median 10.6 58.8 47.7 36.3 14.3 14.3 32.3 27.3 300.0
High 31.5 842.0 108.3 53.8 31.4 33.0 58.9 166.0 200.0
100.0
Low (188.9) 9.0 9.6 10.9 12.6 10.9 11.0 10.6
0.0
Low Quartile (19.2) 23.6 27.6 11.1 12.9 13.0 17.7 19.1
2002 2003 2004 2005 2006 LTM
Upper Quartile 19.0 59.4 54.7 42.2 14.7 28.5 42.8 43.9

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
Historical Working Capital Ratios
WORKING CAPITAL / SALES
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. 1.0% 0.9% 0.4% 1.3% 1.3% 2.0% 1.0% 1.0%
Darden Restaurants Inc. C 2.4% 2.3% 3.0% 3.5% 2.3% 1.9% 2.9% 2.7% Working Capital / Sales
Brinker International Inc. C 0.8% 0.5% 0.0% 0.7% 0.3% -0.3% 0.3% 0.4%
Osi Restaurant Partners, Inc. C 0.8% 2.1% 2.0% 1.4% 1.8% 1.3% 1.7% 1.6% 2.5%
Ruby Tuesday, Inc. C 1.2% 1.3% 1.3% 1.5% 1.3% 0.8% 1.4% 1.3%
Rare Hospitality International C 2.4% 1.6% 1.6% 1.6% 1.3% 1.1% 1.5% 1.7% 2.0%
1.5%
Mean of positive #s 1.5% 1.6% 1.6% 1.7% 1.4% 1.3% 1.6% 1.6%
Mean 1.5% 1.6% 1.6% 1.7% 1.4% 1.0% 1.6% 1.6% 1.0%
Median 1.2% 1.6% 1.6% 1.5% 1.3% 1.1% 1.5% 1.6%
High 2.4% 2.3% 3.0% 3.5% 2.3% 1.9% 2.9% 2.7% 0.5%
Low 0.8% 0.5% 0.0% 0.7% 0.3% -0.3% 0.3% 0.4%
0.0%
Low Quartile 0.8% 1.3% 1.3% 1.4% 1.3% 0.8% 1.4% 1.3%
2002 2003 2004 2005 2006 LTM
Upper Quartile 2.4% 2.1% 2.0% 1.6% 1.8% 1.3% 1.7% 1.7%
DEBT-FREE WORKING CAPITAL / SALES
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International In C 121.0% 101.6% 90.2% 83.4% 76.0% N/A 83.2% 94.5%
Darden Restaurants Inc. C 2.4% 2.3% 3.0% 3.5% 2.3% 1.9% 2.9% 2.7% Debt-Free Working Capital / Sales
Brinker International Inc. C 0.8% 0.5% 0.0% 0.7% 0.3% -0.3% 0.3% 0.4%
Ruby Tuesday, Inc. C 1.2% 1.3% 1.3% 1.5% 1.3% 0.8% 1.4% 1.3% 120.0%
Rare Hospitality International C 2.4% 1.6% 1.6% 1.6% 1.3% 1.1% 1.5% 1.7%
100.0%
Mean of positive #s 1.5% 1.6% 1.6% 1.7% 1.4% 1.3% 1.6% 1.6% 80.0%
Mean 1.5% 1.6% 1.6% 1.7% 1.4% 1.0% 1.6% 1.6% 60.0%
Median 1.2% 1.6% 1.6% 1.5% 1.3% 1.1% 1.5% 1.6% 40.0%
High 2.4% 2.3% 3.0% 3.5% 2.3% 1.9% 2.9% 2.7% 20.0%
Low 0.8% 0.5% 0.0% 0.7% 0.3% -0.3% 0.3% 0.4%
0.0%
Low Quartile 0.8% 1.3% 1.3% 1.4% 1.3% 0.8% 1.4% 1.3%
2002 2003 2004 2005 2006 LTM
Upper Quartile 2.4% 2.1% 2.0% 1.6% 1.8% 1.3% 1.7% 1.7%
DEBT-FREE CASH-FREE WORKING CAPITAL / SALES
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International In C -4533.8% -3835.0% -3446.7% -3180.0% -2904.6% -3007.3% -3177.1% -3580.0%
Darden Restaurants Inc. C -854.1% -809.0% -759.2% -726.0% -677.0% -673.5% -720.8% -765.1% Debt-Free Cash-Free Working Capital / Sales
Brinker International Inc. C -1295.9% -1150.0% -1077.9% -1027.0% -936.7% -925.2% -1013.8% -1097.5%
Osi Restaurant Partners, Inc. C -1638.8% -1419.3% -1190.6% -1070.3% -989.9% -1030.5% -1083.6% -1261.8% 0.0%
Ruby Tuesday, Inc. C -4488.8% -4132.5% -3661.0% -3466.3% -2974.8% -2914.2% -3367.3% -3744.7% -500.0%
Rare Hospitality International C -6433.7% -6355.3% -5342.9% -4610.7% -3958.7% -3724.4% -4637.4% -5340.3% -1000.0%
-1500.0%
-2000.0%
Mean of positive #s N/A N/A N/A N/A N/A N/A N/A N/A -2500.0%
Mean -2942.3% -2773.2% -2406.3% -2180.0% -1907.4% -1853.6% -2164.6% -2441.9% -3000.0%
Median -1638.8% -1419.3% -1190.6% -1070.3% -989.9% -1030.5% -1083.6% -1261.8% -3500.0%
High -854.1% -809.0% -759.2% -726.0% -677.0% -673.5% -720.8% -765.1% -4000.0%
Low -6433.7% -6355.3% -5342.9% -4610.7% -3958.7% -3724.4% -4637.4% -5340.3% -4500.0%
-5000.0%
Low Quartile -4488.8% -4132.5% -3661.0% -3466.3% -2974.8% -2914.2% -3367.3% -3744.7%
2002 2003 2004 2005 2006 LTM
Upper Quartile -1295.9% -1150.0% -1077.9% -1027.0% -936.7% -925.2% -1013.8% -1097.5%

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
CASH / CURRENT ASSETS
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 21694.9% 21754.6% 19183.6% 16355.6% 19559.6% 18666.0% 18366.3% 19709.7% Cash / Current Assets
Brinker International Inc. C 171729.4% 154905.7% 100178.5% 79284.0% 96516.1% 102060.2% 91992.9% 120522.7%
140000.0%
120000.0%
Mean 185687.8% 187521.6% 157052.5% 129124.3% 124825.3% 127289.9% 137000.7% 156842.3% 80000.0%
Median 171729.4% 154905.7% 100178.5% 79284.0% 96516.1% 102060.2% 91992.9% 120522.7% 60000.0%
High 363213.6% 387581.6% 324974.6% 266972.4% 239766.9% 248350.3% 277238.0% 296473.1% 40000.0%
Low 21694.9% 21754.6% 19183.6% 16355.6% 19559.6% 18666.0% 18366.3% 19709.7% 20000.0%
0.0%
Low Quartile 108731.2% 63734.9% 60492.1% 56521.2% 44870.3% 57883.9% 53961.2% 66869.9%
2002 2003 2004 2005 2006 LTM
Upper Quartile 263069.9% 309631.1% 280433.8% 226488.2% 223413.8% 209489.2% 243445.3% 280636.1%
DAYS WORKING CAPITAL
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. 441.7 371.0 329.3 304.5 277.5 N/A 303.8 344.8
Darden Restaurants Inc. C 8.7 8.3 10.9 12.7 8.5 7.1 10.7 9.8 Days Working Capital
Brinker International Inc. C 2.8 1.8 0.1 2.5 0.9 (1.2) 1.2 1.6
Ruby Tuesday, Inc. C 4.5 4.9 4.8 5.5 4.9 2.8 5.1 4.9 450.0
350.0
300.0
Mean 5.6 5.8 5.8 6.3 5.2 3.5 5.8 5.7 200.0
Median 4.5 6.0 6.0 5.5 4.9 3.9 5.6 6.0 150.0
High 8.9 8.3 10.9 12.7 8.5 7.1 10.7 9.8 100.0
Low 2.8 1.8 0.1 2.5 0.9 (1.2) 1.2 1.6 50.0
0.0
Low Quartile 3.0 4.9 4.8 5.1 4.9 2.8 5.1 4.9
2002 2003 2004 2005 2006 LTM
Upper Quartile 8.7 7.8 7.2 5.8 6.6 4.9 6.3 6.3
DAYS OF ACCOUNTS RECEIVABLE
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. N/A N/A N/A N/A N/A N/A N/A N/A
Darden Restaurants Inc. C N/A N/A N/A N/A N/A N/A N/A N/A Days of Accounts Receivable
Brinker International Inc. C N/A N/A N/A N/A N/A N/A N/A N/A
Osi Restaurant Partners, Inc. C N/A N/A N/A N/A N/A N/A N/A N/A 1.0
Ruby Tuesday, Inc. C N/A N/A N/A N/A N/A N/A N/A N/A 0.9
Rare Hospitality International C N/A N/A N/A N/A N/A N/A N/A N/A 0.8
0.7
0.6
Mean of positive #s N/A N/A N/A N/A N/A N/A N/A N/A 0.5
Mean #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! N/A #DIV/0! #DIV/0! 0.4
Median N/A N/A N/A N/A N/A N/A N/A N/A 0.3
High - - - - - - - - 0.2
Low - - - - - - - - 0.1
0.0
Low Quartile #NUM! #NUM! #NUM! #NUM! #NUM! N/A #NUM! #NUM!
2002 2003 2004 2005 2006 LTM
Upper Quartile #NUM! #NUM! #NUM! #NUM! #NUM! N/A #NUM! #NUM!

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
DAYS OF INVENTORY
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 17.5 4.9 3.4 3.8 3.5 3.7 3.6 6.6 Days of Inventory
500.0
Mean 30.7 23.7 27.2 11.3 14.5 7.3 17.6 21.5 300.0
Median 24.4 5.9 16.6 11.6 11.0 8.0 13.1 13.0
200.0
High 55.8 75.6 75.1 21.7 37.7 9.5 44.9 52.9
100.0
Low 1.5 4.5 3.4 3.8 3.5 3.7 3.6 6.6
0.0
Low Quartile 17.5 4.9 12.2 4.9 5.9 6.3 11.6 9.1
2002 2003 2004 2005 2006 LTM
Upper Quartile 54.5 27.7 28.5 14.5 14.2 8.8 15.1 25.8
DAYS OF ACCOUNTS PAYABLE
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. 22,247.1 18,755.1 16,786.6 15,069.9 13,524.4 14,005.1 15,126.9 17,276.6
Darden Restaurants Inc. C N/A N/A N/A N/A N/A N/A N/A N/A Days of Accounts Payable
Ruby Tuesday, Inc. C N/A N/A N/A N/A N/A N/A N/A N/A
15000.0
Mean of positive #s N/A N/A N/A N/A N/A N/A N/A N/A
Median N/A N/A N/A N/A N/A N/A N/A N/A
High - - - - - - - - 5000.0
Low - - - - - - - -
0.0
2002 2003 2004 2005 2006 LTM

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
Historical Leverage Ratios
TOTAL DEBT / MVIC
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 11.8% 16.9% 15.7% 18.0% 16.8% 15.5% 16.8% 15.8% Total Debt / MVIC
10.0%
Mean 8.9% 9.3% 9.8% 11.7% 12.8% 10.9% 11.4% 10.5% 6.0%
Median 8.8% 8.6% 8.9% 10.4% 13.8% 11.4% 11.0% 9.8%
4.0%
High 11.8% 16.9% 15.7% 18.0% 17.3% 15.5% 16.8% 15.8%
2.0%
Low 6.1% 4.7% 4.6% 5.6% 5.6% 6.0% 5.2% 5.3%
0.0%
Low Quartile 8.3% 7.4% 8.2% 9.6% 10.3% 9.7% 9.3% 9.2%
2002 2003 2004 2005 2006 LTM
Upper Quartile 9.4% 8.9% 11.6% 14.8% 16.8% 12.0% 14.6% 12.3%
TOTAL DEBT / TOTAL ASSETS
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 429.3% 505.5% 530.3% 847.2% 785.7% 561.5% 721.0% 619.6% Total Debt / Total Assets
500.0%
Mean 458.9% 563.6% 485.2% 528.0% 627.5% 466.8% 546.9% 532.6% 300.0%
Median 362.5% 487.6% 465.3% 598.1% 705.3% 431.0% 721.0% 590.3%
200.0%
High 1047.5% 1372.2% 891.3% 847.2% 1204.4% 1035.1% 800.7% 964.3%
100.0%
Low 126.5% 97.6% 98.2% 113.4% 122.3% 130.5% 111.3% 111.6%
0.0%
Low Quartile 328.5% 355.3% 440.8% 275.8% 320.0% 176.0% 345.5% 377.3%
2002 2003 2004 2005 2006 LTM
Upper Quartile 429.3% 505.5% 530.3% 805.3% 785.7% 561.5% 755.9% 619.6%
CURRENT DEBT / TOTAL DEBT
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. 98.6% 98.3% 98.8% 98.3% 97.8% N/A 98.3% 98.3%
Darden Restaurants Inc. C 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Current Debt / Total Debt
100.0%
80.0%
Mean of positive #s N/A N/A N/A N/A N/A N/A N/A N/A 60.0%
Mean 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Median 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 40.0%
High 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 20.0%
Low 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0%
Low Quartile 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
2002 2003 2004 2005 2006 LTM
Upper Quartile 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
Historical Margins
GROSS MARGIN
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 22.3% 21.6% 22.0% 22.4% 22.6% 22.7% 22.3% 22.2% Gross Margin
30.0%
Mean 36.8% 36.5% 36.9% 36.7% 36.6% 36.8% 36.7% 36.7% 20.0%
Median 39.2% 37.9% 37.2% 37.8% 36.5% 37.1% 37.2% 37.7% 15.0%
High 63.9% 64.1% 63.2% 63.3% 63.3% 63.4% 63.3% 63.6% 10.0%
5.0%
Low 17.5% 17.8% 18.0% 16.4% 17.5% 17.6% 17.3% 17.4%
0.0%
Low Quartile 22.3% 21.6% 22.0% 22.4% 22.6% 22.7% 22.3% 22.2%
2002 2003 2004 2005 2006 LTM
Upper Quartile 41.3% 41.3% 44.0% 43.7% 43.3% 43.4% 43.6% 42.7%
EBITDA MARGIN
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. N/A N/A
Darden Restaurants Inc. C 12.7% 12.4% 12.6% 13.0% 13.4% 13.4% 13.0% 12.8% EBITDA Margin
13.0%
Mean 14.1% 14.6% 14.8% 14.0% 12.8% 13.0% 13.8% 14.0% 12.5%
Median 13.3% 13.8% 13.7% 13.0% 12.5% 12.6% 13.0% 13.1%
High 17.8% 20.2% 22.5% 20.1% 18.0% 17.8% 20.2% 19.7% 12.0%
Low 12.7% 12.4% 11.0% 10.7% 8.1% 9.0% 9.9% 11.1%
11.5%
Low Quartile 13.1% 12.6% 12.6% 12.3% 12.0% 11.9% 12.8% 12.8%
2002 2003 2004 2005 2006 LTM
Upper Quartile 13.6% 14.1% 14.0% 13.7% 13.4% 13.4% 13.3% 13.5%
EBIT MARGIN
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 8.9% 8.3% 8.4% 8.9% 9.5% 9.5% 8.9% 8.8% EBIT Margin
9.5%
9.0%
Mean 10.0% 10.3% 10.4% 9.4% 8.5% 8.6% 9.4% 9.7%
Median 9.2% 9.5% 9.0% 8.9% 8.3% 8.1% 8.9% 8.8% 8.0%
High 13.3% 14.8% 16.9% 14.1% 12.6% 12.4% 14.5% 14.3% 7.5%
Low 8.8% 8.3% 7.7% 7.1% 4.3% 5.4% 6.4% 7.7%
7.0%
Low Quartile 8.9% 8.9% 8.4% 7.5% 7.9% 7.9% 8.1% 8.4%
2002 2003 2004 2005 2006 LTM
Upper Quartile 9.9% 9.9% 9.9% 9.6% 9.5% 9.5% 9.2% 9.4%

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
Historical Margins
NET INCOME MARGIN
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 5.3% 4.9% 4.5% 5.5% 5.9% 5.9% 5.3% 5.2% Net Income Margin
5.0%
Mean 5.9% 6.5% 6.1% 5.9% 5.3% 5.3% 5.7% 5.9% 3.0%
Median 5.7% 6.1% 4.7% 5.5% 5.2% 5.3% 5.3% 5.2% 2.0%
High 7.0% 9.7% 10.5% 9.2% 7.7% 7.5% 9.2% 8.8% 1.0%
Low 5.2% 4.9% 4.3% 4.1% 2.5% 3.2% 3.8% 4.8%
0.0%
Low Quartile 5.3% 5.1% 4.5% 4.2% 5.1% 4.7% 4.6% 4.8%
2002 2003 2004 2005 2006 LTM
Upper Quartile 6.5% 6.6% 6.4% 6.2% 5.9% 5.9% 5.9% 6.0%
CASH FLOW MARGIN
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. 7.2% 4.5% -1.7% 4.8% -8.8% -7.2% -1.9% 1.2%
Darden Restaurants Inc. C 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Cash Flow Margin
4.0%
2.0%
Mean 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -2.0%
Median 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -4.0%
High 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -6.0%
Low 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -8.0%
-10.0%
Low Quartile 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
2002 2003 2004 2005 2006 LTM
Upper Quartile 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
TAX RETENTION RATE
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 65.5% 66.9% 68.3% 68.6% 70.1% 70.3% 69.0% 67.9% Tax Retention Rate
67.0%
Mean 66.1% 66.2% 65.4% 70.2% 68.4% 68.9% 68.0% 67.3% 65.0%
Median 65.9% 66.6% 64.7% 67.4% 67.6% 69.0% 67.1% 67.1%
64.0%
High 67.1% 67.1% 68.3% 82.7% 70.1% 70.3% 72.5% 70.0%
63.0%
Low 65.5% 65.2% 63.3% 66.0% 66.9% 67.0% 65.6% 65.5%
62.0%
Low Quartile 65.7% 65.2% 64.4% 66.2% 67.3% 68.0% 65.8% 65.7%
2002 2003 2004 2005 2006 LTM
Upper Quartile 66.1% 66.9% 66.4% 68.6% 70.1% 70.2% 69.0% 67.9%

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
Historical Return Ratios
RETURN ON ASSETS
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 278.1% 303.5% 324.6% 382.5% 416.8% 298.3% 374.6% 341.1% Return on Assets
300.0%
Mean 391.0% 456.4% 367.5% 340.7% 384.8% 321.1% 364.3% 388.1% 200.0%
Median 278.1% 333.5% 324.6% 382.5% 416.8% 298.3% 374.6% 341.1% 150.0%
High 908.5% 1100.0% 683.7% 612.2% 795.4% 713.9% 575.3% 746.9% 100.0%
50.0%
Low 155.1% 153.4% 183.0% 142.8% 96.1% 90.5% 165.1% 170.8%
0.0%
Low Quartile 274.9% 303.5% 256.5% 176.5% 186.0% 183.3% 181.8% 245.1%
2002 2003 2004 2005 2006 LTM
Upper Quartile 338.4% 391.6% 389.6% 389.7% 430.0% 319.4% 524.9% 436.6%
RETURN ON EQUITY
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C N/A N/A N/A N/A N/A N/A N/A N/A Return on Equity
Osi Restaurant Partners, Inc. C N/A N/A N/A N/A N/A N/A N/A N/A 100.0%
Ruby Tuesday, Inc. C N/A N/A N/A N/A N/A N/A N/A N/A 90.0%
Rare Hospitality International C N/A N/A N/A N/A N/A N/A N/A N/A 80.0%
70.0%
60.0%
Mean #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! N/A #DIV/0! #DIV/0! 40.0%
Median N/A N/A N/A N/A N/A N/A N/A N/A 30.0%
High 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 20.0%
Low 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 10.0%
0.0%
2002 2003 2004 2005 2006 LTM

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
Historical Selected Expenses
COST OF GOODS SOLD / SALES
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 77.7% 78.4% 78.0% 77.6% 77.4% 77.3% 77.7% 77.8% Cost of Goods Sold / Sales
62.5%
62.0%
Mean 63.2% 63.5% 63.1% 63.3% 63.4% 63.2% 63.3% 63.3% 61.0%
Median 60.8% 62.1% 62.8% 62.2% 63.5% 62.9% 62.8% 62.3% 60.5%
High 82.5% 82.2% 82.0% 83.6% 82.5% 82.4% 82.7% 82.6% 60.0%
Low 36.1% 35.9% 36.8% 36.7% 36.7% 36.6% 36.7% 36.4% 59.5%
59.0%
Low Quartile 58.7% 58.7% 56.0% 56.3% 56.7% 56.6% 56.4% 57.3%
2002 2003 2004 2005 2006 LTM
Upper Quartile 77.7% 78.4% 78.0% 77.6% 77.4% 77.3% 77.7% 77.8%
SG&A / SALES
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 9.6% 9.3% 9.4% 9.4% 9.2% 9.3% 9.4% 9.4% SG&A / Sales
25.0%
20.0%
Mean 22.8% 21.9% 22.1% 22.8% 23.8% 23.9% 22.9% 22.7%
Median 23.5% 21.1% 21.5% 23.6% 25.2% 25.6% 23.4% 23.0% 10.0%
High 50.4% 50.0% 49.1% 49.6% 51.3% 51.5% 50.0% 50.1% 5.0%
Low 4.2% 4.0% 4.3% 4.1% 5.0% 5.0% 4.4% 4.3%
0.0%
Low Quartile 9.6% 9.3% 9.4% 9.4% 9.2% 9.3% 9.4% 9.4%
2002 2003 2004 2005 2006 LTM
Upper Quartile 26.2% 25.3% 26.2% 27.2% 28.4% 28.0% 27.2% 26.6%
LABOR EXPENSE / SALES
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 0.9% 2.7% 2.6% 2.2% 2.1% 3.2% 2.3% 2.1% Labor Expense / Sales
2.5%
Mean 2.5% 2.7% 2.8% 3.0% 2.4% 3.0% 2.7% 2.7% 1.5%
Median 2.9% 2.7% 2.3% 2.2% 1.9% 3.2% 2.3% 2.2% 1.0%
High 4.3% 5.3% 6.0% 5.8% 5.2% 5.3% 5.7% 5.3% 0.5%
Low 0.9% 0.9% 1.4% 1.6% 1.0% 1.0% 1.6% 1.4%
0.0%
Low Quartile 1.0% 1.9% 1.5% 1.9% 1.8% 2.1% 1.7% 2.1%
2002 2003 2004 2005 2006 LTM
Upper Quartile 3.2% 2.7% 2.6% 3.4% 2.1% 3.4% 2.3% 2.3%

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
R&D EXPENSE / SALES
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% R&D Expense / Sales
35.0%
30.0%
Mean 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 20.0%
Median 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 15.0%
High 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 10.0%
Low 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 5.0%
0.0%
Low Quartile 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
2002 2003 2004 2005 2006 LTM
Upper Quartile 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
ADVERTISING EXPENSE / SALES
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Advertising Expense / Sales
50.0%
Mean 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 30.0%
Median 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
20.0%
High 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
10.0%
Low 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0%
Low Quartile 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
2002 2003 2004 2005 2006 LTM
Upper Quartile 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
DEPRECIATION & AMORTIZATION / SALES
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 22.8% 21.4% 19.9% 18.9% 17.5% 34.7% 18.8% 20.1% Depreciation & Amortization / Sales
50.0%
40.0%
Mean 78.1% 73.0% 62.8% 56.4% 49.0% 95.2% 56.1% 63.9%
Median 43.4% 37.3% 31.0% 27.7% 25.4% 53.1% 28.0% 33.0% 20.0%
High 170.4% 166.9% 139.1% 119.0% 101.3% 191.1% 119.8% 139.3% 10.0%
Low 22.8% 21.4% 19.9% 18.9% 17.5% 34.7% 18.8% 20.1%
0.0%
Low Quartile 34.5% 30.3% 28.2% 26.6% 24.1% 47.4% 26.3% 28.8%
2002 2003 2004 2005 2006 LTM
Upper Quartile 119.5% 109.1% 95.8% 90.0% 76.6% 149.6% 87.5% 98.2%

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
CAPITAL EXPENDITURES / SALES
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. 0.0% 0.0% 0.1% 0.0% 0.0% -0.1% 0.0% 0.0%
Darden Restaurants Inc. C 856.5% 811.3% 762.2% 729.4% 679.4% 675.5% 723.7% 767.8% Capital Expenditures / Sales
1200.0%
1000.0%
Mean 2943.8% 2774.8% 2407.9% 2181.8% 1908.8% 1854.5% 2166.2% 2443.4% 600.0%
Median 1639.6% 1421.5% 1192.5% 1071.7% 991.7% 1031.9% 1085.3% 1263.4% 400.0%
High 6436.1% 6357.0% 5344.5% 4612.3% 3960.1% 3725.5% 4639.0% 5342.0% 200.0%
Low 856.5% 811.3% 762.2% 729.4% 679.4% 675.5% 723.7% 767.8% 0.0%
-200.0%
Low Quartile 1296.7% 1150.5% 1077.9% 1027.7% 937.0% 924.9% 1014.2% 1097.9%
2002 2003 2004 2005 2006 LTM
Upper Quartile 4490.0% 4133.8% 3662.3% 3467.8% 2976.1% 2915.0% 3368.7% 3746.0%
RENT EXPENSE / SALES
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Rent Expense / Sales
3.5%
3.0%
Mean 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.0%
Median 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.5%
High 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.0%
Low 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.5%
0.0%
Low Quartile 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
2002 2003 2004 2005 2006 LTM
Upper Quartile 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
INTEREST EXPENSE / SALES
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. -0.1% 0.0% 0.0% -0.2% -0.7% -0.7% -0.3% -0.2%
Darden Restaurants Inc. C -0.8% -0.9% -0.9% -0.8% -0.8% -0.7% -0.8% -0.8% Interest Expense / Sales
Brinker International Inc. C -0.5% -0.4% -0.3% -0.7% -0.6% -0.6% -0.5% -0.5%
Osi Restaurant Partners, Inc. C 0.1% 0.0% -0.1% -0.1% -0.3% -0.2% -0.2% -0.1% 0.0%
Ruby Tuesday, Inc. C 0.7% -0.3% -0.4% -0.4% -1.0% -1.1% -0.6% -0.3% -0.1%
Rare Hospitality International C -0.3% -0.2% -0.2% -0.2% -0.3% -0.2% -0.2% -0.2%
-0.2%
Mean of positive #s 0.4% N/A N/A N/A N/A N/A N/A N/A -0.3%
Mean -0.2% -0.3% -0.4% -0.4% -0.6% -0.6% -0.5% -0.4% -0.4%
Median -0.3% -0.3% -0.3% -0.4% -0.6% -0.6% -0.5% -0.3% -0.5%
High 0.7% 0.0% -0.1% -0.1% -0.3% -0.2% -0.2% -0.1% -0.6%
Low -0.8% -0.9% -0.9% -0.8% -1.0% -1.1% -0.8% -0.8%
-0.7%
Low Quartile -0.5% -0.4% -0.4% -0.7% -0.8% -0.7% -0.6% -0.5%
2002 2003 2004 2005 2006 LTM
Upper Quartile 0.1% -0.2% -0.2% -0.2% -0.3% -0.2% -0.2% -0.2%

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
Historical Growth
NET SALES GROWTH
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. 5.2% 4.5% 4.1% -0.5% 6.8% 2.7% 3.3%
Darden Restaurants Inc. Comp 1 6.6% 7.5% 5.5% 8.4% 0.8% 7.1% 7.0% Net Sales Growth
Brinker International Inc. Comp 2 13.8% 7.8% 5.9% 10.7% 1.5% 8.1% 9.5%
Osi Restaurant Partners, Inc. Comp 3 16.5% 20.3% 12.3% 9.1% -4.3% 13.9% 14.6% 16.0%
Ruby Tuesday, Inc. Comp 4 9.7% 14.0% 6.6% 17.6% 2.3% 12.7% 12.0% 14.0%
Rare Hospitality International Comp 5 2.2% 20.1% 17.0% 17.6% 6.0% 18.2% 14.2% 12.0%
10.0%
Mean 9.8% 13.9% 9.5% 12.7% 1.3% 12.0% 11.5% 6.0%
Median 9.7% 14.0% 6.6% 10.7% 1.5% 12.7% 12.0% 4.0%
High 16.5% 20.3% 17.0% 17.6% 6.0% 18.2% 14.6% 2.0%
0.0%
Low 2.2% 7.5% 5.5% 8.4% -4.3% 7.1% 7.0%
-2.0%
Low Quartile 6.6% 7.8% 5.9% 9.1% 0.8% 8.1% 9.5%
2002 2003 2004 2005 2006 LTM
Upper Quartile 13.8% 20.1% 12.3% 17.6% 2.3% 13.9% 14.2%
EBITDA GROWTH
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. 19.1% 10.9% 1.5% -5.2% -5.3% 2.4% 6.5%
Darden Restaurants Inc. Comp 1 3.6% 9.2% 9.0% 11.8% 1.2% 10.0% 8.4% EBITDA Growth
Brinker International Inc. Comp 2 18.4% 7.0% -5.2% 12.7% 2.5% 4.8% 8.2%
Osi Restaurant Partners, Inc. Comp 3 12.6% 4.8% 9.1% -16.9% 6.2% -1.0% 2.4% 25.0%
Ruby Tuesday, Inc. Comp 4 24.6% 27.0% -4.8% 5.6% 1.0% 9.3% 13.1% 20.0%
Rare Hospitality International Comp 5 6.2% 19.7% 14.5% 3.0% 4.7% 12.4% 10.9%
15.0%
Mean 13.1% 13.5% 4.5% 3.3% 3.1% 7.1% 8.6% 5.0%
Median 12.6% 9.2% 9.0% 5.6% 2.5% 9.3% 8.4% 0.0%
High 24.6% 27.0% 14.5% 12.7% 6.2% 12.4% 13.1% -5.0%
Low 3.6% 4.8% -5.2% -16.9% 1.0% -1.0% 2.4%
-10.0%
Low Quartile 6.2% 7.0% -4.8% 3.0% 1.2% 4.8% 8.2%
2002 2003 2004 2005 2006 LTM
Upper Quartile 18.4% 19.7% 9.1% 11.8% 4.7% 10.0% 10.9%
NET INCOME GROWTH
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. N/A N/A N/A N/A N/A N/A N/A
Darden Restaurants Inc. Comp 1 -2.9% 0.5% 27.9% 16.4% 0.9% 14.9% 10.5% Net Income Growth
Brinker International Inc. Comp 2 10.4% -8.4% 4.1% 35.0% 4.3% 10.2% 10.3%
Osi Restaurant Partners, Inc. Comp 3 10.9% -7.7% -3.2% -31.8% 20.7% -14.2% -7.9% 12.0%
Ruby Tuesday, Inc. Comp 4 52.1% 23.6% -6.8% -1.3% -0.1% 5.2% 16.9% 10.0%
Rare Hospitality International Comp 5 17.4% 16.6% 14.7% -4.6% -2.6% 8.9% 11.0%
8.0%
Mean 17.6% 4.9% 7.3% 2.8% 4.6% 5.0% 8.1% 4.0%
Median 10.9% 0.5% 4.1% -1.3% 0.9% 8.9% 10.5% 2.0%
High 52.1% 23.6% 27.9% 35.0% 20.7% 14.9% 16.9% 0.0%
Low -2.9% -8.4% -6.8% -31.8% -2.6% -14.2% -7.9%
-2.0%
Low Quartile 10.4% -7.7% -3.2% -4.6% -0.1% 5.2% 10.3%
2002 2003 2004 2005 2006 LTM
Upper Quartile 17.4% 16.6% 14.7% 16.4% 4.3% 10.2% 11.0%

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
Historical Growth
ASSET GROWTH
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. N/A N/A N/A N/A N/A N/A N/A
Darden Restaurants Inc. Comp 1 -9.6% 1.8% -4.3% 5.9% 41.3% 1.1% -1.5% Asset Growth
Brinker International Inc. Comp 2 -4.7% -7.1% -11.8% -42.6% 15.3% -20.5% -16.5%
Osi Restaurant Partners, Inc. Comp 3 -3.7% 50.5% 86.3% -2.5% 26.7% 44.8% 32.6% 30.0%
Ruby Tuesday, Inc. Comp 4 23.0% 9.3% -8.2% -0.2% 2.2% 0.3% 6.0% 25.0%
Rare Hospitality International Comp 5 -8.5% 92.6% 26.0% 45.0% 35.8% 54.5% 38.8% 20.0%
15.0%
Mean -0.7% 29.4% 17.6% 1.1% 24.2% 16.1% 11.9% 5.0%
Median -4.7% 9.3% -4.3% -0.2% 26.7% 1.1% 6.0%
0.0%
High 23.0% 92.6% 86.3% 45.0% 41.3% 54.5% 38.8%
-5.0%
Low -9.6% -7.1% -11.8% -42.6% 2.2% -20.5% -16.5%
-10.0%
Low Quartile -8.5% 1.8% -8.2% -2.5% 15.3% 0.3% -1.5%
2002 2003 2004 2005 2006 LTM
Upper Quartile -3.7% 50.5% 26.0% 5.9% 35.8% 44.8% 32.6%
EMPLOYEE GROWTH
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. 14.1% 30.2% 80.8% -3.7% -11.0% 35.8% 30.4%
Darden Restaurants Inc. Comp 1 N/A N/A N/A N/A N/A N/A N/A Employee Growth
Brinker International Inc. Comp 2 N/A N/A N/A N/A N/A N/A N/A
Osi Restaurant Partners, Inc. Comp 3 N/A N/A N/A N/A N/A N/A N/A 100.0%
Ruby Tuesday, Inc. Comp 4 N/A N/A N/A N/A N/A N/A N/A
80.0%
Rare Hospitality International Comp 5 N/A N/A N/A N/A N/A N/A N/A
60.0%
Mean of positive #s N/A N/A N/A N/A N/A N/A N/A 40.0%
Mean #DIV/0! #DIV/0! #DIV/0! #DIV/0! N/A #DIV/0! #DIV/0!
Median N/A N/A N/A N/A N/A N/A N/A 20.0%
High 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Low 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
-20.0%
Low Quartile #NUM! #NUM! #NUM! #NUM! N/A #NUM! #NUM!
2002 2003 2004 2005 2006 LTM
Upper Quartile #NUM! #NUM! #NUM! #NUM! N/A #NUM! #NUM!
TOTAL DEBT GROWTH
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Applebee'S International Inc. 0.4% -0.4% 0.6% 0.7% N/A 0.3% 0.3%
Darden Restaurants Inc. Comp 1 6.5% 6.8% 52.8% -1.8% 1.0% 19.3% 16.1% Total Debt Growth
Brinker International Inc. Comp 2 3.1% 21.7% 13.4% 15.7% -0.9% 16.9% 13.5%
Osi Restaurant Partners, Inc. Comp 3 29.5% 36.1% 16.6% 13.1% -30.3% 21.9% 23.8% 25.0%
Ruby Tuesday, Inc. Comp 4 -5.1% 10.0% 6.0% 7.6% 9.0% 7.9% 4.6%
20.0%
Rare Hospitality International Comp 5 19.9% 25.1% 13.8% 27.0% -17.0% 22.0% 21.5%
15.0%
Mean 10.8% 19.9% 20.5% 12.3% -7.7% 17.6% 15.9%
Median 6.5% 21.7% 13.8% 13.1% -0.9% 19.3% 16.1% 5.0%
High 29.5% 36.1% 52.8% 27.0% 9.0% 22.0% 23.8% 0.0%
Low -5.1% 6.8% 6.0% -1.8% -30.3% 7.9% 4.6%
-5.0%
Low Quartile 3.1% 10.0% 13.4% 7.6% -17.0% 16.9% 13.5%
2002 2003 2004 2005 2006 LTM
Upper Quartile 19.9% 25.1% 16.6% 15.7% 1.0% 21.9% 21.5%

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
Historical Efficiency Ratios
SALES / EMPLOYEE
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C N/A N/A N/A N/A N/A N/A N/A N/A Sales / Employee
0.7
0.6
High - - - - - - - - 0.2
Low - - - - - - - - 0.1
0.0
2002 2003 2004 2005 2006 LTM
ASSETS / EMPLOYEE
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C N/A N/A N/A N/A N/A N/A N/A N/A Assets / Employee
0.7
0.6
High - - - - - - - - 0.2
Low - - - - - - - - 0.1
0.0
2002 2003 2004 2005 2006 LTM
NET FIXED PP&E / GROSS PP&E
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C N/A N/A N/A N/A N/A N/A N/A N/A Net Fixed PP&E / Gross PP&E
Brinker International Inc. C 474.9% 507.3% 1041.3% 850.5% 3785.9% N/A 1892.6% 1332.0%
Osi Restaurant Partners, Inc. C N/A N/A N/A N/A N/A N/A N/A N/A 4000.0%
Ruby Tuesday, Inc. C N/A N/A N/A N/A N/A 381.1% N/A N/A 3500.0%
Rare Hospitality International C N/A N/A N/A N/A N/A N/A N/A N/A 3000.0%
2500.0%
Mean 474.9% 507.3% 1041.3% 850.5% 3785.9% 381.1% 1892.6% 1332.0% 1500.0%
Median 474.9% 507.3% 1041.3% 850.5% 3785.9% 381.1% 1892.6% 1332.0%
1000.0%
High 474.9% 507.3% 1041.3% 850.5% 3785.9% 381.1% 1892.6% 1332.0%
500.0%
Low 474.9% 507.3% 1041.3% 850.5% 3785.9% 381.1% 1892.6% 1332.0%
0.0%
Low Quartile 474.9% 507.3% 1041.3% 850.5% 3785.9% 381.1% 1892.6% 1332.0%
2002 2003 2004 2005 2006 LTM
Upper Quartile 474.9% 507.3% 1041.3% 850.5% 3785.9% 381.1% 1892.6% 1332.0%

Exhibit 7
Applebees
Business Valuation
Ratios (Trends)
Historical Efficiency Ratios
SALES / PP&E
2002 2003 2004 2005 2006 LTM 3 FY Avg. 5 FY Avg.

Darden Restaurants Inc. C 9.8 14.3 14.4 13.0 15.1 13.5 14.2 13.3 Sales / PP&E
14.0
12.0
Mean 11.3 14.1 11.8 12.6 13.9 15.6 12.7 12.7 8.0
Median 9.4 14.3 13.3 12.9 15.1 17.9 12.9 13.3 6.0
High 20.3 19.6 17.0 17.7 17.1 19.0 17.1 15.6 4.0
Low 8.0 7.7 5.3 7.5 7.9 9.7 6.9 7.5 2.0
0.0
Low Quartile 9.1 11.5 8.8 12.0 12.5 13.5 12.6 11.6
2002 2003 2004 2005 2006 LTM
Upper Quartile 9.8 17.4 14.4 13.0 16.7 18.0 14.2 15.6

EXHIBIT 8
Exhibit 8 provides examples of some multiple analyses.

Multiples Analyses Exhibit 8
Applebees
Fair Market Value of Equity
As of December 31, 2006
Summary Multiple Adjustments
Rare
Darden Brinker Osi Hospitality
Restaurants International Restaurant Ruby International
Inc. Inc. Partners, Inc. Tuesday, Inc. Inc.
BEV/Revenue
Unadjusted Multiple (TTM) 1.15 x 1.01 x 0.87 x 1.45 x 1.08 x
Profitability Adjustment 16% 38% 100% -10% 41%

Growth Adjustment 6% 2% -5% -1% -1%
Risk Adjustment 0% -2% 0% -1% 11%
Adjusted Multiple 1.42 x 1.39 x 1.65 x 1.27 x 1.67 x

Implied Adjustment 23% 38% 90% -12% 54%
BEV/EBITDA

BEV/EBIT

MVE/Earnings

MVE/Book Value


Applebees
Profitability Adjustments
Darden Brinker Osi Restaurant Ruby Tuesday, Rare Hospitality

Restaurants Inc. International Inc. Partners, Inc. Inc. International Inc.
EBIT Margin (TTM) 9.5% 8.1% 5.4% 12.4% 7.9%
Subject Co EBIT Margin 11.1%
Adjustment Calculation 16.2% 37.7% 107.1% -10.2% 41.0%
Adjustment Cap +/- 100% 16.2% 37.7% 0.0% -10.2% 41.0%
Selected Adjustment 16.2% 37.7% 100.0% -10.2% 41.0%

Applebees
Growth Adjustments
WACC 11%
Applebees Darden Restaurants Inc. Brinker International Inc. Osi Restaurant Partners, Inc. Ruby Tuesday, Inc. Rare Hospitality International Inc.
Present Value Present Value Present Value Present Value Present Value Present Value
Year Value of $1 Growth 11.0% Value of $1 Growth 11.0% Value of $1 Growth 11.0% Value of $1 Growth 11.0% Value of $1 Growth 11.0% Value of $1 Growth 11.0%
0 1.00 1.00 1.00 1.00 $1.00 1.00 $1.00 1.00 $1.00 1.00 $1.00 1.00
1 1.10 10.0% 0.99 1.07 7.0% 0.96 1.08 8.0% 0.97 1.10 10.0% 0.99 1.09 9.0% 0.98 1.09 9.0% 0.98
2 1.27 15.6% 1.03 1.14 7.0% 0.93 1.17 8.0% 0.95 1.21 10.0% 0.98 1.19 9.0% 0.96 1.19 9.0% 0.96
3 1.37 7.8% 1.00 1.23 7.0% 0.90 1.26 8.0% 0.92 1.33 10.0% 0.97 1.30 9.0% 0.95 1.30 9.0% 0.95
4 1.44 5.0% 0.95 1.31 7.0% 0.86 1.36 8.0% 0.90 1.46 10.0% 0.96 1.41 9.0% 0.93 1.41 9.0% 0.93
5 1.48 3.0% 0.88 1.40 7.0% 0.83 1.47 8.0% 0.87 1.61 10.0% 0.96 1.54 9.0% 0.91 1.54 9.0% 0.91
6 1.53 3.0% 0.82 1.44 3.0% 0.77 1.51 3.0% 0.81 1.66 3.0% 0.89 1.58 3.0% 0.85 1.58 3.0% 0.85
7 1.57 3.0% 0.76 1.49 3.0% 0.72 1.56 3.0% 0.75 1.71 3.0% 0.82 1.63 3.0% 0.79 1.63 3.0% 0.79
8 1.62 3.0% 0.70 1.53 3.0% 0.67 1.61 3.0% 0.70 1.76 3.0% 0.76 1.68 3.0% 0.73 1.68 3.0% 0.73
9 1.67 3.0% 0.65 1.58 3.0% 0.62 1.65 3.0% 0.65 1.81 3.0% 0.71 1.73 3.0% 0.68 1.73 3.0% 0.68
10 1.72 3.0% 0.61 1.63 3.0% 0.57 1.70 3.0% 0.60 1.87 3.0% 0.66 1.78 3.0% 0.63 1.78 3.0% 0.63
11 1.77 3.0% 0.56 1.67 3.0% 0.53 1.75 3.0% 0.56 1.92 3.0% 0.61 1.84 3.0% 0.58 1.84 3.0% 0.58
12 1.82 3.0% 0.52 1.72 3.0% 0.49 1.81 3.0% 0.52 1.98 3.0% 0.57 1.89 3.0% 0.54 1.89 3.0% 0.54
13 1.88 3.0% 0.48 1.78 3.0% 0.46 1.86 3.0% 0.48 2.04 3.0% 0.53 1.95 3.0% 0.50 1.95 3.0% 0.50
14 1.94 3.0% 0.45 1.83 3.0% 0.42 1.92 3.0% 0.44 2.10 3.0% 0.49 2.01 3.0% 0.47 2.01 3.0% 0.47
15 1.99 3.0% 0.42 1.88 3.0% 0.39 1.97 3.0% 0.41 2.16 3.0% 0.45 2.07 3.0% 0.43 2.07 3.0% 0.43
16 2.05 3.0% 0.39 1.94 3.0% 0.37 2.03 3.0% 0.38 2.23 3.0% 0.42 2.13 3.0% 0.40 2.13 3.0% 0.40
17 2.11 3.0% 0.36 2.00 3.0% 0.34 2.09 3.0% 0.36 2.30 3.0% 0.39 2.19 3.0% 0.37 2.19 3.0% 0.37
18 2.18 3.0% 0.33 2.06 3.0% 0.31 2.16 3.0% 0.33 2.37 3.0% 0.36 2.26 3.0% 0.35 2.26 3.0% 0.35
19 2.24 3.0% 0.31 2.12 3.0% 0.29 2.22 3.0% 0.31 2.44 3.0% 0.34 2.33 3.0% 0.32 2.33 3.0% 0.32
20 2.31 3.0% 0.29 2.19 3.0% 0.27 2.29 3.0% 0.28 2.51 3.0% 0.31 2.40 3.0% 0.30 2.40 3.0% 0.30
Total (rounded) $13.50 $12.71 $13.18 $14.16 $13.66 $13.66
Adjustment Calculation 6% 2% -5% -1% -1%
Adjustment Cap +/- 100% 6.2% 2.4% -4.7% -1.2% -1.2%
Selected Adjustment 6% 2% -5% -1% -1%
Total (rounded)
Adjustment Calculation
Selected Adjustment
Applebees
Risk Adjustments
Darden Brinker Osi Restaurant Ruby Tuesday, Rare Hospitality

Restaurants Inc. International Inc. Partners, Inc. Inc. International Inc.
Market Capitalization 5,982 3,826 2,987 1,578 1,102
Cost Of Equity
Risk Free Rate 4.9% 4.9% 4.9% 4.9% 4.9% 4.9%

Market Premium 5.8% 5.8% 5.8% 5.8% 5.8% 5.8%
Beta 0.84 0.84 0.81 0.82 0.95 0.94
Small Stock Premium 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Alpha Factor 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Ke = 10.8% 10.8% 10.6% 10.7% 11.4% 11.4%
Cost of Debt 6.4% 6.4% 6.4% 6.4% 6.4% 6.4%

Tax Rate 40.0% 40.0% 40.0% 40.0% 40.0% 40.0%
After-Tax Cost Of Debt (Kd) 3.8% 3.8% 3.8% 3.8% 3.8% 3.8%
Debt as a % of Capital Structure 10.8% 10.9% 12.0% 9.3% 19.4% 3.5%
WACC = 10.1% 10.1% 9.8% 10.0% 10.0% 11.1%
LT Growth
Cap Rate 10.1% 10.1% 9.8% 10.0% 10.0% 11.1%
Risk Adjustment -0.1% -2.4% -0.2% -1.1% 10.7%

Adjustment Cap +/- 100% -0.1% -2.4% -0.2% -1.1% 10.7%
Selected Adjustment -0.1% -2.4% -0.2% -1.1% 10.7%
Size Premium Table

Market Cap Range (000's)
Decile Low High Size Premium
1 $ 14,100 342087.219 -0.37%
2 $ 6,259 14096.886 0.60%
3 $ 3,473 6241.953 0.75%
4 $ 2,234 3464.104 1.07%
5 $ 1,608 2231.707 1.44%
6 $ 1,098 1607.854 1.75%
7 $ 746 1097.603 1.61%
8 $ 506 746.219 2.36%
9 $ 263 505.437 2.86%
10 $ 1 262.725 6.41%
B C D E F G H I J K
2 Multiples Analyses Exhibit 8
3 Applebees
4 Calculations
5 As of December 31, 2006
6
7
8
9 Summary Multiple Adjustments
10
11 Calculations For Each Line Item

12 BEV/Revenue
13
14 Unadjusted Multiple (TTM) 1.15 x 1.01 x 0.87 x 1.45 x 1.08 x
15
16 Profitability Adjustment 16% 38% 100% -10% 41%
17 Growth Adjustment 6% 2% -5% -1% -1%
18 Risk Adjustment 0% -2% 0% -1% 11%
19
20 Adjusted Multiple (E14*(1+E16)*(1+E17)*(1+E18))
21 Implied Adjustment E20/E14-1
22
23
24
25
26 BEV/EBITDA
27
29
31 Risk Adjustment 0% -2% 0% -1% 11%
32
33 Adjusted Multiple (E28*(1+E30)*(1+E31))
34
35
36
37 BEV/EBIT
38
40
42 Risk Adjustment 0% -2% 0% -1% 11%
43
44 Adjusted Multiple (E39*(1+E41)*(1+E42)))
45
46
47
48 MVE/Earnings
49
51
53 Risk Adjustment 0% -2% 0% -1% 11%
54
56
57
58
59 MVE/Book Value
60
62
64 Risk Adjustment 0% -2% 0% -1% 11%
65
B C D E F G H I
3 Applebees
4 Calculations
6
7
8
9 Profitability Adjustments
10
12
13 EBIT Margin (TTM) 9.5% 8.1% 5.4% 12.4% 7.9%
14
15 Subject Co EBIT Margin 11.1%
16
17 Adjustment Calculation $E$15/E13-1
18
19 Adjustment Cap +/- 100% 0.0% 0.0% 0.0% 0.0% 0.0%
20
21 Selected Adjustment IF(AND(E19=0,E17<0),-$D$19,IF(AND(E19=0,E17>0),$D$19,E19))
A B C D E F G H
3 Applebees
4 Calculations
6
7
8
9 Growth Adjustments
10
11 WACC 11%
12
13
14 Present Value
15 Year Value of $1 Growth $C$11
16 0 1.00 C16/(1+$C$11)^$B16
17 1 1.10 10.0% C17/(1+$C$11)^$B17
18 2 1.27 15.6% C18/(1+$C$11)^$B18
19 3 1.37 7.8% C19/(1+$C$11)^$B19
20 4 1.44 5.0% C20/(1+$C$11)^$B20
21 5 1.48 3.0% C21/(1+$C$11)^$B21
22 6 1.53 3.0% C22/(1+$C$11)^$B22
23 7 1.57 3.0% C23/(1+$C$11)^$B23
24 8 1.62 3.0% C24/(1+$C$11)^$B24
25 9 1.67 3.0% C25/(1+$C$11)^$B25
26 10 1.72 3.0% C26/(1+$C$11)^$B26
27 11 1.77 3.0% C27/(1+$C$11)^$B27
28 12 1.82 3.0% C28/(1+$C$11)^$B28
29 13 1.88 3.0% C29/(1+$C$11)^$B29
30 14 1.94 3.0% C30/(1+$C$11)^$B30
31 15 1.99 3.0% C31/(1+$C$11)^$B31
32 16 2.05 3.0% C32/(1+$C$11)^$B32
33 17 2.11 3.0% C33/(1+$C$11)^$B33
34 18 2.18 3.0% C34/(1+$C$11)^$B34
35 19 2.24 3.0% C35/(1+$C$11)^$B35
36 20 2.31 3.0% C36/(1+$C$11)^$B36
37 Total (rounded) SUM(E16:E36)
38
39 Adjustment Calculation
40
41 Adjustment Cap +/- 100%
42
43 Selected Adjustment
B C D E F
3 Applebees
4 Calculations
6
7
8
9 Risk Adjustments
10
12
13
14 Market Capitalization 5,982
15
16 Cost Of Equity
17
18 Risk Free Rate 4.9% 4.9%
19 Market Premium 5.8% 5.8%
20 Beta 0.84 0.84
21 Small Stock Premium 1.0% 1.0%
22 Alpha Factor 0.0% 0.0%
23 Ke = D18+(D19*D20)+D21+D22 F18+(F19*F20)+F21+F22
24
25 Cost of Debt 6.4% 6.4%
26 Tax Rate 40.0% 40.0%
27 After-Tax Cost Of Debt (Kd) 3.8% 3.8%
28 Debt as a % of Capital Structure 10.8% 10.9%
29
30 WACC = (D28*D27)+((1-D28)*D23) (F28*F27)+((1-F28)*F23)
31
32 LT Growth
33 Cap Rate D30-D32 F30-F32
34
35
36 Risk Adjustment F33/$D$33-1
37 Adjustment Cap +/- 100% 0.0%
38 Selected Adjustment IF(AND(F37=0,F36<0),-$C$37,IF(AND(F37=0,F36>0),$C$37,F37))
39
EXHIBIT 9
Exhibit 9 provides a list of transactions from Capital IQ and Mergerstat. Consider

which transactions are the most comparable.
Exhibit 9
Capital IQ Transaction Screening Report
Screening Criteria
1) Industry Classification (Target/Issuer):Restaurants
2) Closed/Registration Effective Date: [1/1/2004-12/31/2006]
3) Total Transaction Value ($mm):is greater than 100
4) Transaction Type: Merger/Acquisition
5) Geographic Location (Target/Issuer):United States and Canada
Target LTM
Financials - Target LTM Target LTM
Total Financials - Financials -
Announced/Registrati Revenue EBITDA EBIT ($mm) Implied
on Filed Date Total Implied ($mm) (at ($mm) (at (at Implied Enterprise Implied
(Including Bids and Closed/Registrati Transaction Enterprise AnnouncemenAnnouncemenAnnouncemen Enterprise Value/Revenu Enterprise
Letters of Intent) on Effective Date Buyers/Investors Target/Issuer Value ($mm) Business Description [Target/Issuer]Transaction Comments Value/EBIT t) t) t) Value ($mm) es Value/EBITDA
12/27/2006 12/27/2006 GSO Capital Partners Heartland Food Corp. 155.0 Heartland Food Corp. engages in the ownership an GSO Capital Partners LP acquired a majority stake in Heartland - - - - 155.0 - -
operation of franchised BURGER KING restaurants Food Corp. for a consideration of $155 million in cash on
in the Midwest and Southeast United States. Its December 27, 2006. Sperry, Mitchell & Co. was the financial
restaurants offer burgers, sandwiches, fries, and advisor and Chadbourne & Parke LLP was the legal advisor for
soft drinks. Heartland Food Corp. was founded in Heartland.
2003 and is headquartered in Downers Grove,
Illinois.
08/18/2006 12/13/2006 Lone Star Funds Lone Star Steakhouse & 619.88 Lone Star Steakhouse & Saloon, Inc. engages in th Lone Star Funds entered into a definitive agreement to acquire 26.56 310.2 44.85 21.23 563.82 1.82 12.57
Saloon Inc. ownership and operation of mid-priced, full service, Lone Star Steakhouse & Saloon Inc. (Nasdaq: STAR) on
casual dining restaurant concepts in the United August 18, 2006 for $615.02 million. Lone Star Steakhouse &
States. The company operates restaurants under Saloon, Inc. will be acquired by affiliates of Lone Star Funds for
Lone Star, Texas Land & Cattle, Sullivan's, and Del $27.10 per share in cash, a 15% premium to its closing price on
Frisco's brand names. As of March 6, 2006, the August 17, 2006. Lone Star Funds also agreed to acquire the
company owned and operated 250 restaurants. It 3.815 million outstanding options for $37.35 million. The Board
also operated a mid-priced restaurant operating as of Directors of Lone Star Steakhouse & Saloon approved the
Frankie's Italian Grille, as well as licensed 4 Lone agreement in a special meeting and the transaction is subject to
Star restaurants in California, 1 Del Frisco’s stockholder approval and other customary conditions. In case o
restaurant in Florida, 12 Lone Star Steakhouse & termination, the termination fees is $18 million.
Saloon restaurants in Australia, and 1 in Guam, as
of the above date. The company was founded in On November 30, 2006, Lone Star Steakhouse & Saloon Inc.
1991 and is headquartered in Wichita, Kansas. As amended the merger agreement and increased the offer price t
of December 13, 2006, Lone Star Steakhouse & $27.35 per share in cash from $27.10. As a result the new
Saloon Inc. was taken private. consideration is $623.12 million. Lone Star Funds will acquire
3.721 million outstanding options for $36.88 million. The
amended merger agreement has been unanimously approved
by Lone Star Steakhouse & Saloon's Board of Directors. The
acquisition is expected to be completed during the fourth quarte
North Point Advisors LLC and Thomas Weisel Partners LLC are
Exhibit 9
Target LTM
10/30/2006 12/06/2006 Black Canyon Capital LLC, Logan's Roadhouse, Inc. 656.32 Logan’s Roadhouse, Inc. engages in the ownership Bruckmann, Rosser, Sherrill & Co., Inc., Canyon Capital 19.47 320.5 47.84 33.55 653.42 2.04 13.66
Bruckmann, Rosser, Sherrill & Co. and operation of full-services restaurant chains in Advisors LLC, Black Canyon Capital LLC agreed to acquire
L.L.C., Canyon Capital Advisors, LLC the United States. It offers various ribs, chicken, Logan's Roadhouse from CBRL Group, Inc. (NASDAQ: CBRL)
seafood, and vegetable dishes, steak burgers, for a reported consideration of $486 million on October 30,
salads, sandwiches, and scratch yeast rolls. As of 2006. The consideration includes the anticipated proceeds from
April 30, 2006, it operated 134 company-owned a real estate sale-leaseback transaction to be undertaken by
restaurants and 25 franchisees in 20 states. The Logan's and closed simultaneously with the sale of Logan's to
company was founded in 1991 and is LRI. The completion of the deal is subject to customary post-
headquartered in Nashville, Tennessee. Logan’s closing adjustments, if any, for working capital, indebtedness
Roadhouse, Inc. was formerly a subsidiary of CBRLand capital expenditures. The transaction is expected to close o
Group, Inc. before on November 30, 2006.
Wachovia Securities served as financial advisor to CBRL

Group, Inc. Gary M. Brown from Baker, Donelson, Bearman,
Caldwell & Berkowitz acted as legal advisor to CBRL Group,
Inc. Kim Taylor from Kirkland & Ellis acted as legal advisor to
Bruckmann, Rosser, Sherrill & Co. Inc.
02/01/2006 12/05/2006 ADF Companies 165 Pizza Hut 115.0 As of December 5, 2006, 165 Pizza Hut restaurants ADF Companies acquired 165 Pizza Hut restaurants in the US - - - - 115.0 - -
Restaurants in US in US were acquired by ADF Companies. 165 Pizzain a series of transactions for a total of about $115 million. The
Hut Restaurants in US offer catering services. The acquisitions occurred from February-November 2006. With
restaurants are based in The United States. these acquisitions, the ADF Companies are now the second
largest Pizza Hut franchisee in the United States. Capital
Growth Advisors LLC, provided financial advisory services to
ADF Companies for this transaction. Ares Capital Corporation
provided the senior debt and a line of credit. Spirit Finance
Corporation provided initial bridge financing and certain other
financing.
03/10/2006 11/29/2006 Jamba, Inc. (NasdaqNM:JMBA) Jamba Juice Company 264.98 Services Acquisition Corp. International (AMEX: SVI, SVI-U, - - - - 264.98 - -
SVI-WS) entered into an agreement and plan of merger to
acquire Jamba Juice Company for approximately $265 million
on March 10, 2006, from Benchmark Capital, Global Retail
Partners (GRP), Invesco Private Capital, Oak Investment
Partners, Phillips-Smith-Machens Venture Partners, Trinity
Ventures, Ltd. As reported under the terms of the agreement,
SVI will acquire all of the outstanding capital stock of Jamba
Juice for approximately $249 million, and assumed certain
indebtedness for approximately $16 million. Simultaneously with
the closing of the merger, approximately 30.9 million shares of
SVI common stock will be issued, at $7.50 per share, resulting
in aggregate gross proceeds to SVI of approximately $231.6
million, which funds will be used with the approximately $127
million of cash currently held in trust by SVI to fund the merger
consideration and provide additional working and expansion
capital. Paul Clayton will continue in his role as CEO and
President in the new company, supported by the current Jamba
Upon consummation of the merger, SVI will change its name to
On November 28 2006 SACI shareholders approved the merg

10/09/2006 11/17/2006 J.H. Whitney & Co., LLC Landry's Restaurants, 192.0 Landry's Restaurants, Inc., 120 Joe's Crab Shack Landry's Restaurants, Inc. (NYSE: LNY) entered into a - - - - 192.0 - -
Inc., 120 Joe's Crab Restaurants offers dining and leisure services to its definitive agreement to sell 120 of its Joe's Crab Shack
Shack Restaurants customers. Landry's Restaurants, Inc. is based in restaurants to J. H. Whitney Capital Partners, LLC on October
Houston, Texas. 9, 2006. The sales price is approximately $192 million, including
the assumption of certain working capital liabilities. The
remaining 23 Joe's Crab Shack restaurants will either be
converted to another Landry's concept, operated under a
license agreement with J. H. Whitney Capital Partners, LLC or
closed and sold.
Same store sales for Landry's Restaurants in the third quarter

were positive approximately 1.0%, including a negative 8.0%
same store sales for the Joe's Crab Shack division. Joe's Crab
Shack generates about $325 million a year in sales. The
transaction is expected to close in the fourth quarter of 2006,
subject to customary closing conditions, including termination o
any waiting period under Federal antitrust laws.
David Jacquin, Matt Kelly, and Jennifer Trahan of North Point

Advisors LLC served as financial advisors to Landry's. Arthur
Berner, William Nelson, and Scot Dixon of Haynes and Boone L
Exhibit 9
Target LTM
06/30/2006 11/03/2006 Live Nation, Inc. (NYSE:LYV) HOB Entertainment, Inc. 350.0 HOB Entertainment, Inc., an entertainment Live Nation (NYSE: LYV) entered into a definitive merger - - - - 350.0 - -
company, operates club venues and concert agreement to acquire HOB Entertainment, Inc. from Ares
amphitheaters for promoting music in the United Management LLC, Ares Corporate Opportunities Fund, J.P.
States. Its venues provide various genres of music, Morgan Partners and J.H. Whitney & Co., LLC for a
including rock, hip hop, country, rock en español, consideration of $350 million in cash on June 30, 2006. Under
blues, jazz, reggae, and pop. The company the terms of the agreement, $10 million will be held in escrow.
operates venues in venues located in New Orleans, The deal provides for a termination fee of $15 million. The deal
Los Angeles, Chicago, Myrtle Beach, Denver, is subject to regulatory and shareholders approval. The closing
Dallas, Seattle, Orlando, Las Vegas, Anaheim, of the transaction, which is expected by the end of 2006, will be
Cleveland, San Diego, Toronto, Vancouver, and subject to customary closing conditions.
Atlantic City. Its venues also offer southern-style
cuisine. HOB Entertainment, Inc. was founded in Live Nation anticipates the transaction to be accretive to
1992 and is based in Los Angeles, California. As of earnings and free cash flow per share within the first year.
November 3, 2006, HOB Entertainment, Inc. is a Navid Mahmoodzadegan, Markus Pressdee and Andrew Mun o
subsidiary of Live Nation, Inc. UBS were the financial advisors for HOB and Robert L. Adler of
Munger, Tolles & Olson LLP was the legal advisor for HOB.
Dewey Ballantine LLP provided legal counsel to UBS. Andy
Gordon and Guy Nachtomi of Goldman, Sachs & Co. were the
financial advisors for Live Nation and Steve Rowles, Taylor
Stevens, Matt Steiner and Neeta Toprani of Morrison & Foerste
09/05/2006 11/01/2006 Realty Income Corp. (NYSE:O) Ryan's Restaurant 348.0 As of November 1, 2006, 144 Restaurant PropertiesRealty Income Corporation signed a definitive agreement to - - - - 348.0 - -
Group Inc., 144 of Ryan's Restaurant Group Inc. was acquired by acquire 144 restaurant properties from Ryan's Restaurant
Restaurant Properties Realty Income Corp. 144 Restaurant Properties of Group Inc. for a reported consideration of approximately $350
Ryan's Restaurant Group Inc. offer food and dining million in a sale/leaseback transaction on September 5, 2006.
services. The restaurant's are located in Alabama, Realty Income will acquire the Buffets/Ryan's restaurant
Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, properties subject to 20-year, triple-net lease agreements. The
Louisiana, Michigan, Mississippi, Missouri, North exact locations and number of properties to be acquired is the
Carolina, Ohio, Oklahoma, Pennsylvania, South subject of continuing discussion between the parties involved in
Carolina, Tennessee, Texas, Virginia and West the transaction. The acquisition is subject to a number of
Virginia. Ryan’s Restaurant Group Inc. is conditions and is anticipated to close in the fourth quarter of
headquartered in Greer, South Carolina. 2006.
07/24/2006 11/01/2006 Buffets Inc. Ryan's Restaurant 874.35 Ryan’s Restaurant Group, Inc., together with its Buffets Inc. entered into an agreement to acquire Ryan's 14.69 480.0 94.0 58.59 860.77 1.79 9.16
Group Inc. subsidiaries, engages in the ownership and Restaurant Group, Inc. (Nasdaq: RYAN) for a consideration of
operation of restaurants principally in the southern $706.24 million in cash on July 24, 2006. Under the terms of
and midwestern United States. As of December 28, the agreement, Buffets Inc. will pay $16.25 per share for the
2005, the company owned and operated 338 outstanding shares of Ryan. The consideration also includes
restaurants under the Ryan’s and the Fire Mountain assumption of 3.215 million options valued at $18.45 million
brand names. Ryan’s Restaurant Group was being the difference between exercise price of $10.51 million
founded in 1977 and is headquartered in Greer, and offer price of $16.25. Buffets will also assume debt of Ryan
South Carolina. As of November 1, 2006, Ryan's In the event of termination, Ryan's Restaurant Group, Inc. will
Restaurant Group Inc. is a subsidiary of Buffets Inc. pay a termination fee of $25 million, including up to $10 million
for expenses incurred by Buffets, where as Buffet will pay a
termination fee of $7.5 million. The combined company will
continue to be called Buffets, Inc. and will continue to be
headquartered in Eagan, Minnesota. Ryan's will operate as a
separate division of Buffets and will continue to be based in
Greer, South Carolina. R. Michael Andrews, Chief Executive
Officer of Buffets, will continue to serve in this capacity for the
combined company. Ryan’s generated sales of $825 million an
It is anticipated that the transaction will be funded through a com

Exhibit 9
Target LTM
04/20/2006 09/27/2006 Sun Capital Partners IV, L.P., Sun Marsh Supermarkets 324.73 Marsh Supermarkets, Inc. operates supermarkets, Sun Capital Partners, Inc. signed a letter of intent on April 20, 42.8 1,683.79 33.33 6.91 295.73 0.176 8.87
Capital Partners, Inc. Inc. convenience stores, and florist shops primarily in 2006, to acquire Marsh Supermarkets Inc. for a reported
central Indiana and western Ohio. Its supermarkets consideration of approximately $88.15 million including $0.09 fo
offer delicatessens, bakeries, prepared foods, primeClass B options. Under the terms of the proposed deal, Sun
cut meats, fresh seafood, and floral items. The Capital will pay $11.125 for each outstanding share of Marsh's
company’s supermarkets also operate various Class A and Class B common stock. A termination fee of $10
service and specialty departments, including million will be payable if the transaction is terminated under
delicatessens, hot prepared foods, bakeries, prime certain circumstances. In case the shareholders do not approve
cut service meat, fresh seafood, sushi shops, floral the merger agreement and the merger at a meeting held for
shops, imported cheese shops, wines and beer, such purpose, March would be required to pay Sun capital the
salad bars, video rental, fuel kiosks, and amount of Sun capital’s transaction expenses up to $5 million.
Ticketmaster outlets. Its supermarkets include
pharmacies, banks or savings institutions branches The Special Committee approved entering into the letter of
and automated teller machines. The company’s intent. The Board of Directors approved the entering into the
convenience stores offer various grocery, bakery, letter of intent, and entered into an exclusivity agreement with
dairy, and delicatessen items, including fountain Sun Capital. The Marsh Supermarkets has agreed not to
drinks, store-prepared pizza and/or chicken, fresh negotiate with other persons or solicit alternative transactions
pastry products, and sandwiches, as well as sells prior to May 11, 2006. If it breaches its obligations regarding
money orders, lottery tickets, and petroleum exclusivity, it will be required to reimburse Sun Capital for its ex
products. Its floral shops offer plants and cut
flowers and provide event floral arrangements for Sun Capital Partners, Inc. entered into a definitive merger agre
individuals and corporate clients. In addition, the
company provides food management services unde
07/05/2006 09/05/2006 Strategic Hotels & Resorts, Inc. The Fairmont Scottsdale 345.0 The Fairmont Scottsdale Princess offers guest Strategic Hotels & Resorts Inc. agreed to acquire Fairmont - - - - 345.0 - -
(NYSE:BEE) Princess rooms, meeting space, restaurants, and recreationafroScottsdale Princess from Fairmont Raffles Holdings
facilities. It offers south pool, meeting and wedding International for $345.0 million on July 5, 2006. Fairmont will
spaces, and other hospitality amenities. The continue to manage the property after the deal is completed.
Fairmont Scottsdale Princess also offers hotel The transaction is subject to contractual closing conditions. The
packages, such as spa and golf courses. The acquisition is expected to close during the third quarter of 2006.
company was founded in 1987 and is based in
Scottsdale, Arizona. The Fairmont Scottsdale
Princess is a former subsidiary of Fairmont Raffles
Holdings.
08/17/2006 08/21/2006 Sun Capital Partners, Inc. Real Mex Restaurants 667.79 Real Mex Restaurants, Inc. operates full service, Sun Capital Partners, Inc. agreed to acquire Real Mex 16.69 298.6 56.63 38.74 646.44 2.16 11.41
Inc. Mexican casual dining restaurant chain in the Unite Restaurants Inc. for a consideration of $359 million in cash on
States. It operates restaurants primarily under El August 17, 2006. Under the terms of the agreement $11 will be
Torito, Acapulco Mexican Restaurant Y Cantina, held in escrow. Bruckmann, Rosser, Sherrill & Co., Jefferies
and Chevys Fresh Mex brand names. These Capital Partners, J.W. Childs Associates, L.P., Canterbury
restaurants offer various Mexican dishes and Capital Partners and Blackstone Mezzanine Partners sold their
alcoholic beverages. The company, through its stakes in the transaction. Murray Huneke, John Twichell and
subsidiary, Real Mex Foods, Inc. manufactures Damon Chandik from Piper Jaffray & Co., Mike Jones, Jim
specialty products for outside customers, including Walsh, Rob Engel and Chris Nobili from Wachovia Securities,
fast food and casual restaurants, amusement parks LLC and Deutsche Bank Securities Inc. were the financial
and club stores, as well as food service, retail, advisors to Real Mex Restaurants Inc. Michael Weinberg and
vending, and institutional customers. As of Stuart Chasanoff of Jones Day acted as the legal advisors to
December 31, 2006, the company owned and Piper Jaffray Companies. David A. Gerson of Morgan, Lewis &
operated 195 restaurants principally located in Bockius LLP was the legal advisor for Sun Capital Partners.
California. Real Mex Restaurants was founded in Carmen J. Romano of Dechert LLP was the legal advisor for
1998. It was formerly known as Acapulco Real Mex Restaurants.
Acquisition Corp. and changed its name to Real
Mex Restaurants, Inc. in 2004. The company is
headquartered in Cypress, California. Real Mex
Restaurants, Inc. is a subsidiary of RM Restaurant
Holding Corp.
Exhibit 9
Target LTM
05/19/2006 06/28/2006 Briad Main Street, Inc. Main Street Restaurant 160.12 Main Street Restaurant Group, Inc. operates as a Briad Main Street, Inc., a wholly owned subsidiary of The Briad 18.04 243.57 18.04 8.07 145.57 0.598 8.07
Group Inc. franchisee of TGI Friday’s restaurants in the United Group entered into a definitive agreement to acquire Main Stree
States. The company also engages in the ownershi Restaurant Group, Inc. (NASDAQ: MAIN) from CIC Partners
and operation of the Bamboo Club ‘Asian Bistro’ LP on May 19, 2006 for a reported consideration of
restaurants and Redfish Seafood Grill and Bar approximately $122.69 million. Under the terms of the
restaurants, as well as in the operation of Alice agreement, Briad Main Street, Inc. will pay $6.40 per share in
Cooper’stown restaurants. As of December 31, cash for all issued and outstanding shares of Main Street
2005, it operated 55 TGI Friday's, 10 Bamboo Club Restaurant Group’s common stock. Mr. Bradford Honigfeld,
‘Asian Bistro’, and 4 Redfish Seafood Grill and Bar sole shareholder and CEO of The Briad Group controls
restaurants in 13 states, as well as 1 Alice approximately 2.2 million shares of Main Street Restaurant
Cooper'stown restaurant in Cleveland, Ohio. Main Group common stock. As of May 12, 2006, the Main Street
Street Restaurant Group was incorporated in 1988 Restaurant Group had 17,230,176 shares of its common stock,
and is headquartered in Phoenix, Arizona. As of 3370835 options and 581,395 warrants outstanding. Main
June 30, 2006, Main Street Restaurant Group, Inc. Street Restaurant Group is obligated to pay a termination fee of
is a subsidiary of Briad Main Street, Inc. $5.0 million to The Briad Group and to pay The Briad Group up
to $2.0 million as reimbursement of fees and expenses incurred
by The Briad Group relating to the merger agreement and the
transactions contemplated by the merger agreement.
The tender offer is subject to a minimum tender condition of 90
Cowen and Company LLC acted as financial advisor and Brian

02/16/2006 06/20/2006 Wellspring Capital Management, L.L.C.Checkers Drive In 209.3 Checkers Drive-In Restaurants, Inc. engages in the Wellspring Capital Management, L.L.C. entered into a definitive 12.03 187.15 25.05 16.14 194.2 1.04 7.75
Restaurants Inc. development, production, ownership, operation, andagreement to acquire Checkers Drive-In Restaurants, Inc.
franchising of double drive-thru restaurants under (NASDAQ: CHKR) on February 16, 2006, for $188.75 million in
the brand names Checkers and Rally’s cash. Wellspring will pay $15.00 in cash for each outstanding
Hamburgers. As of January 2, 2006, it operated 804share and option. Wellspring Capital Management will also
restaurant locations, consisting of 200 company assume Checkers’ debt. There were 11,500,175 shares issued
operated and 604 franchisee operated restaurants and outstanding and 2.52 million options outstanding.
in southeastern and midwestern United States. Wellspring furnished Checkers with commitment letters for the
Checkers Drive-In Restaurants was founded in equity and debt financing necessary for the transaction. A
1985 and is headquartered in Tampa, Florida. As of termination Fee of $7 million would be payable if the deal
June 20, 2006 Checkers Drive-In Restaurants, Inc. terminates.
was taken private.
The acquisition agreement has been approved by the Checker’
board of directors and by the special committee of the board
formed to explore strategic alternatives. Completion of the
transaction is subject to customary conditions and regulatory
approvals, expiration of the applicable waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the
approval of holders of a majority of Checkers' outstanding
shares. The deal is expected to close in the second quarter of 2
The merger agreement with Wellspring Capital Management LL
05/03/2006 05/03/2006 Perkins & Marie Callender’s Inc. Marie Callender Pie 440.0 Marie Callender Pie Shops, Inc. operates a chain of Perkins & Marie Callender’s Inc., formerly known as The - - - - 440.0 - -
Shops, Inc. restaurants in the United States and Mexico. The Restaurant Company, announced the acquisition of Marie
company offers soups, starters, crisp and chicken Callender Pie Shops, Inc. in a transaction valued at $440 million
sesame salads, pasta, sandwiches and burgers, on May 3, 2006. Castle Harlan, Inc. divested its stake in the
muffins, and wine products, as well as pie products company. Under the terms of transaction, The Restaurant
in various flavors. Marie Callender Pie Shops, Inc. Company acquired all the outstanding stock, options and
was founded in 1948 and is headquartered in Aliso warrants of Marie Callender Pie Shops, Inc. The Restaurant
Viejo, California. Marie Callender Pie Shops, Inc. is Company also assumed debt of approximately $101 million, an
a subsidiary of Perkins & Marie Callender’s, Inc. lease obligation of $7 million. Marie Callender Pie Shops, Inc.
will operate as wholly owned subsidiary of The Restaurant
Company.
Houlihan Lokey Howard & Zukin gave financial advice to Castle

Harlan, Inc. Kevin Miller of Alston & Bird LLP gave legal advice
to Houlihan Lokey Howard & Zukin. Schulte Roth & Zabel LLP
was the legal advisor to The Restaurant Company on the deal.
Exhibit 9
Target LTM
01/13/2006 04/18/2006 Compass Group plc (LSE:CPG) Levy Restaurants 250.0 Levy Restaurants operates as a restaurant and Compass Group PLC entered into an agreement to acquire the - - - - 490.2 - -
foodservice organization in the United States and remaining 51% stake in Levy Restaurants for approximately
internationally. The company operates in two $250 million in cash on January 13, 2006. The transaction is
groups, Restaurant, and Sports and Entertainment. expected to close on April 17, 2006. Stan Meadows, Scott
The Restaurant group includes locations that range Williams, Gary Karch and Richard Dees of McDermott Will &
from fine dining to casual dining, as well as Emery LLP gave legal advise to Levy Restaurants.
manages foodservice operations for retailers. The
Sports and Entertainment group represents a
foodservice specialty providing restaurant quality
dining experiences at sports facilities, entertainment
venues, and convention centers that include
stadiums, arenas, convention facilities, and
music/performance venues in the United States.
Levy Restaurants portfolio includes restaurants,
such as Spiaggia, Bistro 110, and Fulton's on the
river in Chicago; and Fulton's Crab House,
Portobello Yacht Club, and Wolfgang Puck's at
Walt Disney World Resort; as well as sports venues
and events, such as Wrigley Field in Chicago,
Lambeau Field in Green Bay, STAPLES Center in
Los Angeles, and AmericanAirlines Arena in Miami.
The comapny was founded in 1978 and is based in
Chicago, Illinois. As of April 18, 2006, Levy Restaur
12/08/2005 03/08/2006 Wellspring Capital Management, L.L.C.Dave & Buster's Inc. 372.66 Dave & Buster’s, Inc. engages in the ownership andWellspring Capital Management LLC entered into a definitive 17.39 123.8 63.07 21.32 370.8 3.0 5.88
operation of restaurant/entertainment complexes in agreement to acquire Dave & Buster's, Inc. (NYSE: DAB) from
North America. The company’s complexes combine HBK Investments, LP on December 8, 2005, in a transaction
casual dining with an array of entertainment reportedly valued at approximately $282.29 million. Under the
attractions, including simulators, high-tech video terms of the agreement, Wellspring will acquire all of Dave &
games, traditional pocket billiards, and shuffleboard Buster's outstanding shares for $18.05 per share, all the
as well as various redemption games that comprise outstanding 1.07 million options at 9.2 per share, 0.57 million
basic games of skill, such as skee-ball and outstanding warrants at $4.59 per share, and 2.32 million of
basketball. Its locations also have multiple special convertible corporate debt at $5.13 per share. A termination fee
event facilities that are used for hosting private of $10.175 million has been agreed in the transaction. All the
parties, business functions, and other corporate securities except common stock have been valued at the
sponsored events. The company was founded in difference between offer price and their respective exercise
1982 and is headquartered in Dallas, Texas. prices. The merger agreement has been unanimously approved
by the Dave & Buster's board of directors. Completion of the
transaction is subject to customary conditions and regulatory
approvals, and the approval of Dave & Buster's shareholders.
The parties expect that the merger will be consummated in the
second quarter of 2006. Wellspring has furnished Dave & Buste
12/12/2005 03/01/2006 Bain Capital, LLC, The Carlyle Group, Dunkin' Brands, Inc. 2,425.0 Dunkin' Brands, Inc. operates as a quick service Bain Capital Partners, The Carlyle Group and Thomas H. Lee - 4,800.0 188.0 - 2,425.0 - -
Thomas H. Lee Partners, L.P. restaurant franchisor in the coffee, bakery, and ice Partners entered into a definitive agreement to acquire Dunkin’
cream segments. It operates a chain of coffee and Brands, Inc. from Allied Domecq Plc on December 12, 2005.
baked goods restaurants, ice cream specialty The transaction is reportedly valued at approximately $2.425
stores, and sandwich restaurants. The company billion in cash. Dunkin’ Brands, Inc. had sales of $4.8 billion for
serves the food and beverage industry. Dunkin' the fiscal year ending August 31, 2004. The private equity firms
Brands, Inc. was founded as Allied Domecq Quick are going to raise approximately $1.4 billion out of the entire
Service Restaurants in 1999 and changed its name consideration through debt financing from a lending group that
to Dunkin' Brands, Inc. in 2004. The company is would be lead by J.P. Morgan Chase & Co. The management o
headquartered in Canton, Massachusetts. Dunkin' Dunkin’ Brands, Inc. is going to participate in the transaction as
Brands, Inc. is a prior subsidiary of Allied Domecq investors.
plc.
The closing of the transaction is subject to regulatory approvals
The existing Dunkin’ Brands management team, led by Chief
Executive Officer, Jon L. Luther, will continue in their current
positions. The transaction is expected to close in the first
quarter of 2006. J.P. Morgan Securities Inc. acted as financial
advisor and Mr. Paul S. Bird, Mr. Gary M. Friedman and Ms.
Elizabeth Pagel Serebransky of Debevoise & Plimpton LLP
acted as legal advisor to Pernod Ricard on the transaction. Citig
Exhibit 9
Target LTM
12/12/2005 02/24/2006 Newcastle Partners, LP, Steel PartnersFox & Hound Restaurant 157.75 Fox & Hound Restaurant Group engages in the Newcastle Partners, L.P. and Steel Partners II, L.P. proposed a 13.73 164.65 22.08 12.41 170.31 1.03 7.71
LLC, Steel Partners, II L.P. Group development and operation of entertainment cash tender offer on December 12, 2005, to purchase all of the
restaurants under the Fox and Hound, and Bailey’s outstanding shares of common stock of Fox & Hound
brand names in the United States. Its entertainment Restaurant Group (NASDAQ: FOXX) not already owned for
restaurants combine a social gathering place, full $14.75 per share. Newcastle and Steel would also cash out
menu and full service bar, audio and video systems outstanding in the money options and warrants at this price.
for sports entertainment; games, such as pocket The transaction is reportedly valued at $145.36 million. The
billiards; and a late-night dining. The company’s tender offer will be subject to customary conditions, including a
restaurant features full-service bars, which offer a majority of Fox & Hound's shares on a fully diluted basis being
selection of domestic, imported, and specialty tendered and not withdrawn, expiration of the applicable waiting
beers. As of March 22, 2005, it owned and operatedperiod under the Hart-Scott-Rodino Antitrust Improvements Act
59 Fox and Hound restaurants; and 18 Bailey’s of 1976, Fox & Hound's stockholder approval, the obtaining of
restaurants located in Alabama, Arizona, Arkansas, all consents, approvals or authorizations required by all state,
Colorado, Georgia, Illinois, Indiana, Kansas, city or local liquor licensing boards, agencies or other similar
Louisiana, Michigan, Missouri, Nebraska, New entities and Newcastle and Steel being satisfied that Section
Jersey, New Mexico, North Carolina, Ohio, 203 of the Delaware General Corporation Law is inapplicable to
Oklahoma, Pennsylvania, South Carolina, the offer to purchase and the potential merger thereafter. The
Tennessee, Texas, and Virginia. The company was offer will not be subject to or conditioned upon any financing arr
formerly known as Total Entertainment Restaurant
Corp. and changed its name to Fox & Hound
Restaurant Group in May 2005. Fox & Hound
Restaurant is based in Wichita, Kansas.
09/27/2005 11/18/2005 Trimaran Capital Partners, Trimaran EPL Intermediate, Inc. 415.0 EPL Intermediate, Inc. owns, operates, and Trimaran Capital Partners entered into a definitive agreement - - - - 415.0 - -
Fund II franchises quick service restaurants specializing in with American Securities Capital Partners L.P., to acquire EPL
marinated and flame-grilled chicken. The company Intermediate Inc. on September 27, 2005. The transaction is
is based in Irvine, California. valued at approximately $415 million on a debt-free basis,
subject to adjustment as provided in the purchase agreement
for debt and debt related costs, transaction expenses, working
capital and management retained equity. The closing of the
transaction is subject to the satisfaction of waiver of customary
conditions as set forth in the stock purchase agreement. The
purchase agreement also contains a number of customary
representations, warranties and covenants. In connection with
the closing of the Acquisition, directors Glenn B. Kaufman,
David L. Horing, and Stephen E. Carley were replaced by
Steven A. Flyer and David L. Benyaminy on the board of EPL
Intermediate. The purchase agreement may be terminated by
mutual agreement by both parties if certain conditions containe
in the purchase agreement have not been satisfied or waived b
December 31, 2005. Bank of America Securities LLC advised E
10/18/2005 10/18/2005 Sun Capital Partners, Inc. Garden Fresh 198.0 Garden Fresh Restaurant Corp. engages in the Sun Capital Partners Inc. acquired Garden Fresh Restaurant - - - - 198.0 0.81 6.6
Restaurant Corp. ownership and operation of salad buffet restaurants Corp. from Fairmont Capital Inc., Centre Partners Management
under the names, Souplantation and Sweet LLC, Northwestern Mutual Insurance Co. and management of
Tomatoes. As of September 30, 2003, the companythe company for $198 million on October 18, 2005. Sun Capital
operated 97 restaurants in Arizona, California, will provide a bridge loan in this transaction. Garden Fresh has
Colorado, Florida, Georgia, Illinois, Kansas, annual revenue of $245 million and EBIDTA of about $30
Missouri, Nevada, New Mexico, North Carolina, million.
Oregon, Texas, Utah, and Washington. Garden
Fresh was founded in 1983 and is headquartered in Murray Huneke, John Twichell and Damon Chandik of Piper
San Diego, California. Jaffray & Co. advised Fairmont Capital Inc., Northwestern
Mutual Life Insurance Co., Investment Arm and Centre Partners
Management LLC while Steven Rubin and Jeffrey Hopkins of
Weil Gotshal & Manges LLP acted as their legal advisers. Doug
Gessner, Jeremy Liss, Mike Wright, Rob Kiburz, Lacey Bundy
and Jon Glassglow of Kirkland & Ellis LLP provided counsel to
Sun Capital.
Exhibit 9
Target LTM
09/19/2005 10/10/2005 Black Canyon Capital LLC, Leonard Claim Jumper 250.0 Claim Jumper Restaurants, LLC offers a selection Leonard Green & Partners, L.P. announced that it has entered - 226.0 - - - - -
Green & Partners, L.P. Restaurants, LLC of prepared items for lunch and dinner. It provides into a letter of intent to acquire a majority stake in Claim Jumpe
steaks, fish and seafood, rotisserie chicken, baby Restaurants, LLC on September 19, 2005. As part of the
back pork ribs, baked pot pies, wood-fired pizzas, acquisition, Black Canyon Capital LLC will make an equity
pasta, sandwiches, burgers, baked goods, investment of $5 million and an additional $15 million in senior
desserts, sweets, and soups and salads. The subordinated notes. The company has received Hart-Scott-
company’s saloons offer signature cocktails, chilled Rodino antitrust clearance to sell itself to Leonard Green &
martinis, spirits, specialty nonalcoholic beverages, Partners, L.P. For the year ended on December 31, 2004,
wines, and imported and American craft beers. It Claim Jumper Restaurants, LLC reported revenues of $226
also offers banquet facilities. The company serves million. Piper Jaffray Companies was the financial advisor to
families, children, seniors, and business Claim Jumper Restaurants, LLC on the deal. Michael Weinberg
professionals. It has locations in Arizona, California,of Jones Day advised Piper Jaffray Companies.
Colorado, Illinois, Nevada, Oregon, and
Washington. Claim Jumper Restaurants, LLC was
founded in 1977 and is based in Irvine, California.
11/03/2004 10/03/2005 Penn National Gaming Inc. Argosy Gaming Co. 2,253.64 Argosy Gaming Company engages in the ownershipPenn National Gaming, Inc. (Nasdaq: PENN) entered in to an 10.67 1,017.03 268.79 205.19 2,189.81 2.15 8.15
(NasdaqNM:PENN) and operation of riverboat casinos, and related agreement on November 3, 2004, to acquire Argosy Gaming
entertainment and hotel facilities in the midwestern Company (NYSE: AGY) for approximately $2.22 billion,
and southern United States. The company owned including approximately $805.28 million of long-term debt of
and operated six riverboat casinos, including the Argosy and its subsidiaries. As reported under the terms of the
Argosy Casino Alton in Alton, Illinois, serving the St agreement, Penn National will acquire all of the outstanding
Louis metropolitan market; Argosy Casino-Riversideshares of Argosy for a cash price of $47.00 per share and each
in Missouri, serving the greater Kansas City outstanding option to purchase Argosy’s common stock will also
metropolitan market; Argosy Casino-Baton Rouge inbe converted into the right to receive a cash amount equal to
Louisiana; Argosy Casino-Sioux City in Iowa; $47, less the exercise price for such option. Argosy Gaming ha
Argosy Casino-Lawrenceburg in Indiana, serving 29.5 million shares of common stock and 1.4 million outstandin
the Cincinnati and Dayton metropolitan markets; stock options exercisable at a price of $29.20 per share
and Empress Casino Joliet in Illinois serving the outstanding as on November 3, 2004. Argosy Gaming shall pay
greater Chicagoland market. The company’s hotels to Penn National Gaming a termination fee in an amount equal
offers land-based entertainment pavilions, to $49.50 million. The transaction is subject to approval by the
recreational vehicle parks, entertainment lounges, Argosy Gaming stockholders and by each company's
and support facilities featuring buffet restaurant and respective state regulatory bodies, and to certain other
specialty restaurants. Argosy Gaming Company necessary regulatory approvals and other customary closing
was organized in 1992 and is based in Alton, Illinoisconditions contained in the merger agreement. The transaction
As of October 3, 2005, Argosy Gaming Co.
operates as a subsidiary of Penn National Gaming
Inc.
09/06/2005 09/22/2005 Castle Harlan Partners IV, L.P., Castle Perkins & Marie 245.0 Perkins & Marie Callender’s, Inc., together with its Castle Harlan, Inc. and the managment of Perkins & Marie - 341.34 42.23 25.51 - - -
Harlan, Inc. Callender’s Inc. subsidiaries, operates and franchises full-service Callender’s Inc., formerly known as Restaurant Co., The,
family dining restaurants primarily in the Midwest, announced that they have agreed to acquire a stake in the
Florida, and Pennsylvania under the brand name company from Don Smith and BancBoston Ventures, Inc. for
Perkins Restaurant and Bakery. The company also $245 million on September 6, 2005. The transaction will buy out
operates casual-dining restaurants and sells pie andBancBoston Ventures Inc.'s 30% interest of the company's
other bakery items primarily located in the western common stock, as well as preferred stock that will be redeemed
United States under the name Marie Callender’s prior to the deal's closing. Castle Harlan will invest $65 million o
Restaurant and Bakery. In addition, it manufactures equity from its Castle Harlan Partners IV LP fund. Donald Smith
and sells pies, pancake mixes, cookie doughs, will continue to own a minority position in the company.
muffin batters, and other bakery products for third- Restaurant Co., The’s other senior managers are expected to
party customers. As of December 31, 2006, the participate in the purchase. David Pittaway, a Castle Harlan
company’s network consisted of 155 operated and Senior Managing Director, led the negotiating team. As a result
322 franchised Perkins’ restaurants in 33 states of the transaction, William Pruellage, Castle Harlan, Inc.'s
and in 5 Canadian provinces, as well as 92 operate Managing Director, will join the board of directors of the
and 46 franchised Marie Callender’s restaurants in company. The transaction is expected to close by September
four states and Mexico. It also operated 11 Marie 2005.
Callender’s restaurants under partnership
agreements. The company, formerly known as The Marc Weingarten, Robert Goldstein, Christian Mittweg, and
Restaurant Company, was founded in 1958 and is David Levine of Schulte Roth & Zabel, LLP provided legal advic
based in Memphis, Tennessee. Perkins & Marie
Callender’s, Inc. is a subsidiary of Perkins & Marie C
Exhibit 9
Target LTM
04/28/2005 09/22/2005 Pacific Equity Partners Worldwide Restaurant 268.38 Worldwide Restaurant Concepts, Inc. and its Pacific Equity Partners entered into a definitive merger 17.16 359.53 26.38 14.0 240.2 0.668 9.11
Concepts Inc. subsidiaries engage in the operation, development, agreement to acquire Worldwide Restaurant Concepts Inc.
and franchising of the Sizzler restaurants; the (WRC) on April 28, 2005. As reported, the consideration was
operation and development of the Pat & Oscar's valued at approximately $218.26 million, excluding debt. Pacific
restaurants; and the operation of KFC franchises. would pay $7.25 per share, based on the merger consideration
As of April 30, 2005, the company operated and formula in the merger agreement using the exchange rate of US
franchised 310 Sizzler restaurants in the United dollar to Australian dollar of 0.7806 on April 28, 2005. The term
States, Australia, New Zealand, Latin America, and of the deal are subject to fluctuations in the Australian dollar
Asia; 21 Pat & Oscar's restaurants in southern exchange rate. According to the terms of the merger
California; and 111 KFC restaurants in Australia. agreement, per share consideration would vary from a floor of
The company was founded in 1958 and is $6.65 if the US dollar to Australian dollar exchange rate is
headquartered in Sherman Oaks, California. 0.7339 or below to a high of $7.25 if the exchange rate is
Worldwide Restaurant Concepts, Inc. was acquired 0.8140 or above. The transaction is subject to the approval of
as a wholly owned subsidiary by an affiliate of WRC's stockholders, as well as customary closing conditions,
Pacific Equity Partners Pty Limited in September including receipt of regulatory approvals and certain third party
2005. consents, including, but not limited to, the approval by YUM!
Brands, Inc. of the transfer of franchise agreements for WCR's
KFC(R) stores in Australia, and receipt by Pacific Equity Partne
05/27/2005 07/25/2005 Triarc Companies Inc. (NYSE:TRY) RTM Restaurant Group 724.13 As of July 25, 2005, RTM Restaurant Group was Triarc Companies, Inc. (NYSE: TRY; TRY.B) entered into a - - - - 724.13 - -
acquired by Triarc Companies Inc. RTM Restaurant definitive agreement to acquire RTM Restaurant Group (RTM)
Group operates as a quick service food company in for approximately $738 million on May 27, 2005. As reported
the United States. It operates a portfolio of under the terms of the deal, Triarc Companies, Inc. will pay
restaurants concepts, which include Arby's Roast $175 million in cash, subject to adjustment under certain
Beef Restaurants and Mrs. Winner's Chicken & circumstances, plus either 10 million shares of Triarc's existing
Biscuits. The company was founded by Russ Class B common stock, Series 1 (Series B-1 Stock) or 10
Umphenour in 1973 and is based in Atlanta, million shares of a newly created, non-voting Triarc Class B
Georgia. common stock, Series 2 (Series B-2 Stock) that are converted
into shares of Series B-1 Stock. All RTMRG stock options
either will be exercised or terminated and cancelled prior to the
closing of the acquisition of RTM, except for specified rollover
stock options, which will be converted into replacement stock
options to acquire shares of Triarc Class B-1 Common Stock or
Triarc Class B-2 Common Stock, as applicable. The "in-the-
money" value of these replacement stock options at the time of
grant will reduce the number of shares included in the
aggregate merger consideration. In connection with the RTM ac
04/06/2005 06/01/2005 DB Real Estate, Gaylord Entertainmen ResortQuest Waikiki 107.0 ResortQuest Waikiki Beach Hotel provides boardingGaylord Entertainment Co. (NYSE: GET) entered into an - - - - 107.0 - -
Co. (NYSE:GET) Beach Hotel lodging services. The hotel offers valet parking, agreement to purchase the Aston Waikiki Beach Hotel from WB
Internet access, swimming, surfing, hiking, and 2507 Kalakaua, LLC, a subsidiary of Leucadia National
canoeing services. Additionally, it owns and Corporation for $107 million on April 6, 2005. This purchase
operates restaurants and ice cream parlors. agreement is subject to due diligence and approval by Gaylord'
ResortQuest Waikiki, formerly known as Aston board of directors. Gaylord plans to bring in a partner that will
Waikiki Beach Hotel, is headquartered in Honolulu, own the majority of the equity in the property and that partner
Hawaii. As of June 1, 2007, ResortQuest Hawaii will fund the majority of the equity required for the purchase,
LLC is a subsidiary of IAC/InterActiveCorp. which will be an important factor in the board's consideration.
On May 2, 2005, Gaylord Entertainment agreed to sell 80.1%
interest in the Aston Waikiki Beach Hotel to DB Real Estate.
11/10/2004 04/13/2005 - Quality Dining Inc. 114.54 Quality Dining, Inc. and its subsidiaries engage in Quality Dining, Inc. (Nasdaq: QDIN) announced that it has 8.96 232.1 24.97 14.46 129.57 0.558 5.19
the development and operation of both quick servic entered into a definitive merger agreement with QDI Merger
and full service restaurants in the United States. Corp. pursuant to which a group of five shareholders led by
The company owns the Grady's American Grill, company Chief Executive Officer Mr. Daniel B. Fitzpatrick will
Papa Vino's Italian Kitchen, and Spageddies Italian purchase all the outstanding shares of common stock owned by
Kitchen concepts, as well as operates Burger King the public shareholders on November 9, 2004. Under the terms
restaurants and Chili's Grill & Bar restaurants as a of the proposed transaction, the public holders of the
franchisee. It operated 123 Burger King restaurants outstanding shares of Quality Dining would each receive $3.20
39 Chili's Grill & Bar restaurants, 2 Grady's per share in cash in exchange for their shares. The purchase
American Grill restaurants, 6 Papa Vino's Italian would take the form of a merger in which Quality Dining would
Kitchen restaurants, 3 Spageddies Italian Kitchen survive as a privately held corporation. Mr. Fitzpatrick's group
restaurants, and 1 Porterhouse Steaks and Seafoodalready owns 44.7% of the company's outstanding shares, and
restaurant, as of February 9, 2005. Quality Dining 45.7% giving effect to their stock options. The board had
was founded in 1981 by Daniel B. Fitzpatrick. The appointed a special committee of independent directors to
company is headquartered in Mishawaka, Indiana. evaluate the transaction. Houlihan, Lokey, Howard & Zukin
Financial Advisers, Inc. and Houlihan, Lokey, Howard & Zukin
Capital, which acted as the special committee's financial
advisors. Banc of America Securities LLC advised the investor
group. The transaction, which is expected to be completed in e
Exhibit 9
Target LTM
01/20/2005 03/07/2005 Trimaran Capital Partners Charlie Browns, Inc. 140.0 Charlie Browns, Inc. operates a steakhouse chain inTrimaran Capital Partners LLC announced that it has backed - - - - 140.0 - -
New Jersey. Its menu includes seafood, chicken, the management buy-out of Charlie Brown's Inc. from Castle
appetizers, soups and salads, steaks and chops, Harlan Inc. in a transaction valued at $140 million on January
burgers, sandwiches and wraps, cheese, cheese 20, 2005. Banc of America Securities LLC is providing $85
sticks, pizzas, coffee, desserts, wines, and beers. million in financing for the buyout, a $15 million revolver and $7
The company also has locations in New York and million term. Charlie Brown's senior management team, headed
Pennsylvania. Charlie Browns, Inc. was founded in by Russell D'Anton, will continue in their current positions and
1966 and is headquartered in Mountainside, New will be investors in the transaction. D'Anton will assume the role
Jersey. of Chairman of the Board of Directors. Closing is expected in
the first quarter.
Wachovia Securities Managing Director Dan Bumgardner

served as financial adviser to Trimaran. Cahill Gordon & Reinde
LLP partner Roger Meltzer served as counsel to Trimaran, whil
Schulte Roth & Zabel LLP partners Marc Weingarten and
Robert Goldstein provided counsel to Castle Harlan.
11/01/2004 12/29/2004 Arcapita Inc. Church's Chicken 390.0 Church's Chicken, also known as Cajun Operating Arcapita Inc. announced that it has signed an agreement to - - - - 390.0 - -
Company is a quick service chicken concept. The acquire the Church's Chicken Brand from AFC Enterprises, Inc
Company operates a chain of restaurants in the for as reported value of approximately $390 million on Novemb
United States, Canada, Costa Rica, Honduras, 1, 2004. The deal is comprised of $383 million in cash and a
Indonesia, Kuwait, Mexico, Nigeria, Puerto Rico, subordinated note from an affiliate of the buyer for $7 million. A
Saipan, South Africa, St. Maarten, Tobago, part of the transaction, if the agreement is terminated by
Trinidad, and Venezuela. It serves specialties, Church's Chicken or AFC under certain conditions, it shall be
including fried okra, coleslaw, mashed potatoes, liable to pay Arcapita a sum of $15 million as the termination
corn on the cob, and honey butter biscuits. The fee. AFC Enterprises expects net proceeds from the sale, after
company also offers catering services. The tax considerations, to be approximately $275 million. Further
company was founded in 1952 and is based in terms of the agreement were not disclosed. The transaction is
Atlanta, Georgia. Church's Chicken is a former expected to close by the end of the year 2004. Sun Trust Bank
subsidiary of AFC Enterprises Inc. of Atlanta is providing a senior bridge loan. Drawbridge Special
Opportunities Fund II LP is providing real estate financing. The
rest is equity financed by the First Islamic Investment Bank
through a holding company managed by Arcapita. Bear, Stearn
& Co. Inc. acted as the financial advisor to AFC Enterprises in
this transaction. King & Spalding's Mr. C. William Baxley and M
11/24/2004 12/27/2004 Charlesbank Capital Partners, LLC, Captain D’s, LLC 150.0 Captain D’s, LLC owns, operates, and franchises Charlesbank Capital Partners and Grotech Capital Group - - - - 150.0 - -
Charlesbank Equity Fund V, Limited restaurants in the United States and the Caribbean. announced the acquisition of Captain D's Inc. from Lone Star
Partnership, Grotech Capital Group, Its restaurants serve seafood menu that includes Funds. Charlesbank Capital Partners is investing through its
Inc. entrees, pasta dishes, and the signature fried fish. Charlesbank Equity V fund. The sponsors are arranging $100
The company’s restaurants also offer baked or million in senior bank debt for the buyout. Wachovia Securities
broiled fish, as well as shrimp, chicken, salads, is syndicating the $100 million of bank debt. The deal is
home-style side dishes, sandwiches, starters and expected to close by the end of 2004. Goodwin Proctor advised
desserts, and sweet tea. It offers side items, Charlesbank Capital Partners. Wachovia Securities Inc advised
including corn, baked potato, tossed salads, the acquirors.
hushpuppies, and southern style green beans.
Captain D’s also operates restaurants in various
military bases internationally. The company was
founded in 1969 as Mr. D's. It changed its name to
Captain D's Seafood, Inc. Captain D's Seafood
further changed its name to Captain D’s, LLC in
2002. The company is based in Nashville,
Tennessee. As of December 27, 2004, Captain D’s,
LLC is a subsidiary of Sagittarius Brands, Inc.
Exhibit 9
Target LTM
07/28/2004 07/28/2004 CBL & Associates Properties Inc. Monroeville Mall 231.2 Monroeville Mall is a shopping complex that CBL & Associates Properties, Inc. (NYSE:CBL) has acquired - - - - 231.2 - -
(NYSE:CBL) operates department stores, an athletic facility, the Monroeville Mall in Monroeville, PA from Turnberry
luxury apartments, and a food market. The mall is Associates. The acquisition included the mall, an associated
based in Monroeville, Pennsylvania. As of center known as the Annex, and an open-air expansion known
07/28/2004, Monroeville Mall is a subsidiary of CBLas the Village all of which are situated on leasehold land. The
& Associates Properties Inc. consideration for this acquisition is $231.2 million and is
expected to generate an initial yield for the mall and associated
center of 7.37% based upon current income. An additional
$20.7 million will be invested for the open-air expansion, which
is expected to yield 8.18% when it opens in mid-2005. The
combined return for the entire project is expected to be 7.45%.
The purchase price is comprised of the assumption of a $134.0
million fixed-rate, non-recourse loan that matures in 2013 and
bears interest at a rate of 5.732%; $36.25 million in cash,
including closing costs; and the issuance of 780,470 SCUs
(special common units) of CBL's Operating Partnership with a
par value of $60.95 million, or $78.10 per unit. The SCUs will b
entitled to receive an initial annual dividend of 6.5% and will be
06/14/2004 07/07/2004 Bob Evans Farms Inc. Mimi’s Cafe Inc. 179.6 Mimi’s Cafe, Inc. offers various food products in Bob Evans Farms, Inc. (Nasdaq: BOBE) announced that it has 17.82 102.3 17.64 9.79 174.47 1.71 9.89
(NasdaqNM:BOBE) New Orleans cafes and European bistros. As of signed a definitive agreement to acquire SWH Corporation
December 31, 2003, the company owned and (d/b/a Mimi's Cafe). The deal was valued at $182 million in
operated 78 restaurants including 47 in California, 9cash, including the assumption of approximately $79 million of
in Arizona, 6 in Colorado, 4 in Texas, 3 in Nevada, 3outstanding indebtedness. Mimi's total revenues for calendar
in Utah, 2 in Florida, 2 in Kansas, 1 in New Mexico, year 2003 were $240.5 million. Mimi's Cafe will operate as a
and 1 in Oklahoma. Mimi’s Café was founded by separate subsidiary of Bob Evans Farms. The acquisition will b
Thomas M. Simms in 1978 and is headquartered in financed initially through a committed credit facility, which is
Tustin, California. As of 07/07/2004, Mimi’s Cafe expected to be refinanced through a private placement of
Inc. is a subsidiary of Bob Evans Farms Inc. approximately $190 million in debt securities. Proceeds from
this transaction will also be used to repay Mimi's existing debt.
CIBC World Markets acted as the financial advisor to Mimi’s
Cafe Incorporated.
05/03/2004 07/01/2004 Castle Harlan Partners IV, L.P., Castle Caribbean Restaurants 340.0 Caribbean Restaurants LLC engages in restaurant Castle Harlan, Inc. announced that it has signed a definitive - - - - - - -
Harlan, Inc. LLC business. It operates BURGER KING restaurants in agreement to acquire a majority stake in Caribbean Restaurant
Puerto Rico. Caribbean Restaurants is based in LLC from Oak Hill Capital Partners and American Securities
Cataño, Puerto Rico. Capital Partners in a transaction valued at $340 million on May
3, 2004. Castle Harlan, Inc. will invest through its fund Castle
Harlan Partners IV, L.P. in the transaction. Following the
transaction, Caribbean's management, led by Luis Arenas
Pérez, Chief Executive Officer, will retain a minority stake in the
company. Oak Hill sold its 73% stake while American Securities
sold its 10% stake in the transaction. Credit Suisse First Boston
and Wachovia are providing senior debt and mezzanine
financing in the transaction.
Marc Weingarten, Partner of Schulte Roth & Zabel, LLP, acted

as a legal advisor to Castle Harlan, Inc. Ken Schneider, Partner
at Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as a
legal advisor to Oak Hill Capital Partners. Credit Suisse and
Wachovia Securities, LLC served as financial advisors to Oak
Hill Capital Partners and Caribbean Restaurants LLC.
01/20/2004 05/19/2004 Boyd Gaming Corp. (NYSE:BYD) Red River Entertainment 190.0 Harrah’s Entertainment, Inc. (NYSE:HET) and Boyd Gaming - - - - 190.0 - -
of Shreveport Corporation (NYSE:BYD) jointly announced that they have
Partnership in signed a definitive agreement for Harrah’s to sell its Shreveport
Commendam hotel-casino to Boyd Gaming for $190 million, subject to
regulatory approval. Harrah’s Entertainment, Inc. will pay a
termination fee of $10.0 million to Boyd Gaming Corporation, in
the event of the termination of the agreement. On May 17,
2004, Boyd Gaming Corporation (NYSE: BYD) announced that
it has received unanimous approval from the Louisiana Gaming
Control Board for its $190 million acquisition of Harrah's
Shreveport. Latham & Watkins LLP, under the lead of Mr.
Charles Ruck, was legal advisor to Harrah's Entertainment Inc
while CIBC World Markets Corp advised Boyd Gaming Corp on
the deal. Morrison & Foerster, LLP was the legal advisor to
Boyd Gaming Corp.
Exhibit 9
Target LTM
04/05/2004 05/14/2004 Quinlan Private Capital Ltd. Maybourne Hotel Group 1,372.05 Maybourne Hotel Group owns and runs internationaQuinlan Private agreed to purchase Savoy Hotel plc for £750 - - - - 1,372.05 - -
hotels and restaurants. The company comprises of million ($1,372.05 million) from Colony Capital, LLC and
The Berkeley, The Claridge’s, and The Connaught. Blackstone Real Estate Advisors on April 5, 2005. Deutsche
The company was founded in 1889 as The Savoy Bank AG London was financial advisor to Savoy Hotel plc,
Group and changed its name to Maybourne Hotel Colony Capital, LLC and Blackstone Real Estate Advisors. The
Group in January 2005. Maybourne Hotel Group is conversion was made through oanda.com on April 5, 2004.
based in London, United Kingdom. Maybourne Hote
Group operates as a subsidiary of Coroin Limited.
05/04/2004 05/04/2004 Simon Property Group Inc. Plaza Carolina 309.0 Plaza Carolina is a shopping mall that includes Simon Property Group, Inc. (NYSE: SPG) announced that it - - - - 309.0 - -
(NYSE:SPG) specialty stores, ATM machines, department stores has completed the purchase of a 100% interest in Plaza
cinemas, and a food court. The mall's specialty and Carolina for $309 million from a partnership owned 50% by the
departmental stores include Limited Too, PacSun, California Public Employees' Retirement System ("CalPERS")
Claire's Boutique, GAP, Rave, Zales Jewelers, and 50% by the State of Michigan Treasury ("Michigan").
JCPenney, Sears, and Champs Sports. Plaza Credit Suisse First Boston principled the private placement of a
Carolina was founded in 1978 and is based in five-year, $260 million loan in connection with the acquisition.
Carolina, Puerto Rico. As of 05/04/2004, Plaza The financing is comprised of a fixed and floating component at
Carolina is a subsidiary of Simon Property Group an initial approximate all-in blended rate of 3.1%.
Incorporation.
09/29/2003 03/10/2004 Capital Investors IV, L.P., Centre Garden Fresh 143.03 Garden Fresh Restaurant Corp. engages in the Fairmont Capital Inc. announced the acquisition of Garden 10.86 217.52 26.8 12.39 134.57 0.619 5.02
Partners Management LLC, Fairmont Restaurant Corp. ownership and operation of salad buffet restaurants Fresh Restaurant Corp. (Nasdaq: LTUS) on September 30,
Capital Inc under the names, Souplantation and Sweet 2003. Fairmont Capital Inc. The merger agreement provides
Tomatoes. As of September 30, 2003, the companythat the stockholders of Garden Fresh will receive $16.35 per
operated 97 restaurants in Arizona, California, share in cash for their shares of common stock. Under
Colorado, Florida, Georgia, Illinois, Kansas, occurrence of certain circumstances, a termination fee of
Missouri, Nevada, New Mexico, North Carolina, approximately $4.1 million would be payable. Fairmont Capital,
Oregon, Texas, Utah, and Washington. Garden and its partners, will be providing the equity portion of the
Fresh was founded in 1983 and is headquartered in financing and will finance the balance of the purchase price.
San Diego, California. Fleet National Bank and Fleet Securities Inc. are providing
senior debt financing and will assist with raising more debt
financing for the deal.
SG Cowen Securities Corporation served as the financial

advisor to the Board of Directors and its Special Committee in
connection with the proposed merger. After completion of the
proposed merger, Garden Fresh will continue to be
headquartered in San Diego, California, and will operate as a
private company.
On September 30, 2003, the company announced that the

$16.35 per share cash offer remains unchanged. But that Centr
08/29/2003 02/25/2004 - Cara Operations Ltd. 324.0 Cara Operations Ltd. serves as an integrated food Cara Holdings Limited today announced that it has proposed to 7.86 829.31 78.45 41.24 324.0 0.391 4.13
service company with owned and franchised the Board of Directors of Cara Operations Limited a going
operations. The company's foodservice activities ar private transaction to acquire all of the outstanding Common
focused on preparing, serving, and distributing food shares (TSX: CAO) and Class A non-voting shares (TSX:
to guests through its branded restaurants, catering CAO.A) not owned directly or indirectly by it and its principals a
activities, and integrated food distribution a price of $7.50 per share in cash, representing an aggregate
operations. Its wholly owned businesses include value of $324 million. Cara Holdings is controlled Ms. Gail
Swiss Chalet, Harvey's, Second Cup, Kelsey's Regan, Ms. Rosemary Phelan, Ms. Holiday Phelan-Johnson.
Neighbourhood Bar & Grill, and Montana's On December 17, 2003, Cara Operations Limited and Cara
Cookhouse. As a franchisee, the company operatesHoldings Limited announced today that they have reached an
Outback Steakhouse Restaurants in eastern agreement in respect of Cara Holdings’ proposal to effect a
Canada; Cara Air Terminal Restaurant Division; going private transaction, pursuant to which Cara Holdings and
Cara Airport Services Division; and Summit Food other participating parties (Acquisition Group) will acquire
Service Distributors, Inc. In addition, Cara owns indirectly all of the outstanding Common shares (TSX: CAO)
74% of Milestones Restaurants, Inc., an up-scale and Class A non-voting shares (TSX: CAO.A) of Cara
casual restaurant chain. As of March 31, 2003, the Operations not owned directly or indirectly by the Acquisition
company had approximately 1,200 locations Group at a price of $7.625 per share in cash. The Acquisition
operating in 10 provinces across Canada. Cara Group currently owns approximately 79% of the Common
Operations Ltd. was founded in 1883 as The shares and 31% of the Class A shares, which in the aggregate
Canada Railway News Company and changed its
name to Cara Operations Ltd. in 1961. Cara
Operations Ltd. is based in Mississauga, Canada.
*Denotes proprietary information
Financial data provided

by
Estimates data
provided by
Exhibit 9
Target LTM
Historical Equity
Pricing Data supplied
by
Certain data is the
copyrighted (2007)
material of Dun &
Bradstreet, Inc., which
reserves all of its rights
Fixed income security

data provided by
Fixed income security

and pricing data
provided by
Standard & Poor's
ratings information is
updated on a daily
basis.
Ownership data provided by Thomson Financial
Exhibit 9
Target
SIC Eating and Drinking Places;
Deal Terms
Announce Date 01/01/04-12/31/06
Enterprise Value Minimum 100 (millions)
Deal Status Closed
Enterprise Value Target Revenue EBIT EBITDA

Announce Date Close Date Buyer Name Target Name Target Bus. Desc. Deal Size ($MM) 5 Day Premium(%) 30 Day Premium(%) Synopsis (EV) EV / Sales EV / EBITDA EV / EBIT LTM($mm) LTM LTM
11/22/2006 1/31/2007 MidOcean Partners Sbarro, Inc. Owns and operates a chain 450 MidOcean Partners acquired Sbarro Inc for 450 1.3 349
of Italian restaurants $450 million. Sbarro Inc, based in New York,
was founded 50 years ago by the Sbarro family
and owns approximately 1,000 Italian
restaurants throughout 34 countries. MidOcean
Partners intends to work with the manag
5/1/2006 1/26/2007 ARAMARK Corp. /Neubauer/ ARAMARK Corp. Provides food management 8,086 21.0 16.0 A group of investors led by ARAMARK Corp's 9,933 0.9 10.7 16.6 11,329 600 929
and uniform rental services CEO, Joseph Neubauer, has acquired all
outstanding shares in ARAMARK Corp, the
world's third-largest food service provider, for
approximately US$6.1 billion in cash plus the
assumption of US$2.0 billion in debt.
8/18/2006 12/14/2006 Lone Star Management Co. Lone Star Steakhouse & Owns and operates steak 586 17.0 8.0 Lone Star Steakhouse & Saloon Inc was 561 0.8 12.1 24.0 678 23 47
Ltd. Saloon, Inc. house restaurants acquired by affiliates of Lone Star Funds for
US$586.2 million in cash. Lone Star Funds
increased its offer from US$27.10 to US$27.35
in cash.
10/31/2006 12/6/2006 LRI Holdings, Inc. CBRL Group, Inc. Operates restaurants 486 LRI Holdings Inc has acquired Logan's 486 7.3 35.1 47.9 90 13 18
Roadhouse Inc from CBRL Group Inc for
US$486 million. Logan's Roadhouse Inc
operates 143 restaurants and franchises 25
restaurants in 20 states. LRI Holdings Inc is
doing this deal together with the following privat
3/13/2006 11/29/2006 Services Acquisition Corp. Jamba Jucie Co. Manufactures juice and 265 Services Acquisition Corp International acquired 265 0.8 345
International operates fruit drink outlets Jamba Juice Co for $265 million in cash. The
price of the transaction, as well as capital for
growth, will be provided by cash currently held
in trust by Services Acquisition Corp
International and the sale
10/10/2006 11/17/2006 JCS Holdings LLC Landry's Restaurants, Operates restaurants 192 JCS Holdings LLC has acquired 120 Joe's Crab 192
Inc. Shack restaurants from Landry's Restaurants
Inc for approximately US$192 million. The Joe's
Crab Shack restaurant chain no longer fits in
with Landry's Restaurants Inc's future plans.
JCS Holdings LLC is an acq
7/5/2006 11/6/2006 Live Nation, Inc. House of Blues Owns and operates House 350 Live Nation Inc acquired HOB Entertainment Inc 350
Entertainment, Inc. of Blues night club and for $350 million in cash. HOB operates 10
restaurants venues under the House of Blues brand and
eight amphitheaters. The acquisition will allow
Live Nation to expand its presence in the
growing mid-size venue business an
7/25/2006 11/1/2006 Buffets Holdings, Inc. Ryan's Restaurant Owns and operates 688 48.0 36.0 Buffets Inc, a subsidiary of Buffets Holdings 814 1.0 9.1 15.1 822 54 89
Group, Inc. restaurants Inc, acquired Ryans Restaurant Group Inc for
approximately US$687.7 million in cash. Under
the terms of the agreement, Ryans Restaurant
Group Inc will receive US$16.25 per share in
cash from Buffets Inc. Buffe
8/8/2006 8/22/2006 Sun Capital Partners, Inc. Bruckmann, Rosser, Operates full service 350 Sun Capital Partners Inc acquired Real Mex 350
Sherrill & Co. LLC restaurants Restaurants Inc from Bruckmann Rosser
Sherrill & Co LLC for $350 million. Real Mex
Restaurants Inc manages casual-dining,
Mexican-style restaurants in more than a dozen
states under the El Torito, Chevy's Fresh-M
5/22/2006 6/30/2006 The Briad Group Main Street Restaurant Franchises and operates 110 23.0 32.0 Briad Main Street Inc, a subsidiary of Briad 133 0.6 8.0 20.0 244 7 17
Group, Inc. restaurants Group acquired Main Street Restaurant Group
Inc for approximately $110.3 million in cash.
Under the terms of the agreement, Main Street
Restaurant Group Inc shareholders will receive
$6.40 in cash for each Main
2/17/2006 6/20/2006 Taxi Holdings Corp. Checkers Drive-In Owns and operates quick- 172 (3.0) Taxi Holdings Corp, a portfolio company of 177 1.0 6.7 10.3 187 17 26
Restaurants, Inc. service restaurants Wellspring Capital Management LLC, acquired
Checkers Drive-In Restaurants Inc for $171.9
million in cash, plus the assumption of debt.
Checkers Drive-In Restaurants Inc develops,
owns, operates, and franchises qu
4/10/2006 5/3/2006 TRC Holding LLC Castle Harlan, Inc. Owns and operates 440 The Restaurant Co (TRC), operator and 440
restaurants franchisor of a national chain of family
restaurants under the Perkins Restaurant &
Bakery name, acquired Marie Callender's, a
chain of dining restaurants best known for
baked pies for approximately $440 million in a
Exhibit 9
Enterprise Value Target Revenue EBIT EBITDA

Announce Date Close Date Buyer Name Target Name Target Bus. Desc. Deal Size ($MM) 5 Day Premium(%) 30 Day Premium(%) Synopsis (EV) EV / Sales EV / EBITDA EV / EBIT LTM($mm) LTM LTM
12/8/2005 3/8/2006 Wellspring Capital Dave & Buster's, Inc. Owns and operates 258 18.0 38.0 Wellspring Capital Management LLC acquired 346 0.8 5.9 20.0 454 17 59
Management LLC restaurant and Dave & Busters Inc for $257.9 million in cash.
entertainment complexes The transaction includes the assumption of all
debt by Wellspring Capital Management LLC.
12/12/2005 2/27/2006 F&H Acquisition Corp. Fox & Hound Restaurant Owns and operates 163 24.0 25.0 F&H Acquisition Corp, an acquisition vehicle led 167 1.1 8.3 14.4 149 12 20
Group entertainment restaurants by Newcastle Partners LP and Steel Partners II
LP, entered into an agreement after
commencing a tender offer to acquire Fox &
Hound Restaurant Group for approximately
US$163.5 million in cash. Fox & Hound R
10/18/2005 10/18/2005 Sun Capital Partners, Inc. GF Holdings, Inc. Owns and operates salad 198 Sun Capital Partners Inc acquired Garden 198 0.9 221
buffet style restaurants Fresh Restaurant Corp from GF Holdings Inc
for approximately US$198 million. The sellers
included Fairmont Capital Inc, Centre Partners
Management LLC and Northwestern Mutual
Insurance Co. Garden Fresh Restaurant C
9/6/2005 9/22/2005 Castle Harlan, Inc. The Restaurant Co. Operates and franchises 245 New York-based private-equity investment firm, 245 0.7 341
mid-scale full service Castle Harlan Inc acquired The Restaurant Co
restaurants for approximately $245 million. Under the
Perkins Restaurant & Bakery name, TRC is the
operator and franchiser of 483 family
restaurants in 33 U.S. states and five
4/29/2005 9/22/2005 Pacific Equity Partners Pty Worldwide Restaurant Operates, develops and 193 40.0 38.0 Pacific Equity Partners Pty Ltd has acquired 175 0.5 6.0 10.6 359 17 29
Ltd. Concepts, Inc. franchises restaurants Worldwide Restaurant Concepts Inc through
Pacific's newly established financial affiliate,
Aus Bidco Pty Ltd, for approximately US$193
million in cash. The deal's merger consideration
formula had Pacific pay Wo
5/31/2005 7/25/2005 Triarc Cos., Inc. RTM Restaurant Group Operates a chain of fast 327 Triarc Cos Inc acquired RTM Restaurant Group 736
food restaurants for $326.5 million in cash and stock, plus the
assumption of $420 million in liabilities. Through
its subsidiaries, Triarc is the franchisor of the
Arby's restaurant system and owner and
operator of 233 restaur
6/16/2004 4/13/2005 Quality Dining, Inc. Quality Dining, Inc. Operates restaurants 21 40.0 35.0 A private group led by management of Quality 118 0.5 7.4 23.2 229 5 16
/Management/ Dining Inc acquired the remaining 55.3% stake
in the company that it does not already own for
US$20.5 million in cash. The private group
consists of Daniel Fitzpatrick, CEO and
shareholder of Quality Dining, an
1/20/2005 3/7/2005 Trimaran Capital Partners LLCCharlie Brown's, Inc. Owns and operates 140 Trimaran Capital Partners acquired Charlie 140
restaurants Browns Inc from Castle Harlan Inc for $140
million. Castle Harlan Inc originally acquired the
business in 1997. Charlie Browns Inc owns 45
neightborhood restaurants.
11/1/2004 12/29/2004 First Islamic Investment Bank AFC Enterprises, Inc. Owns and operates fast 390 Crescent Capital Investment Inc, a unit of First 390
Ec food restaurants Islamic Investment Bank EC, entered into an
agreement to acquire Church's Chicken from
AFC Enterprises Inc for approximately US$390
million in cash. Crescent Capital Investments,
Inc. is an Atlanta-based pr
12/27/2004 12/27/2004 Captain D's LLC /Private Lone Star Management Operates a restaurant 150 A private group led by Grotech Capital Group 150
Equity Group/ Co. Ltd. seafood Inc and Charlesbank Capital Partners LLC
acquired Captain D's LLC from Lone Star
Funds for approximately US$150 million.
Captain D's LLC is a high quality quick-service
seafood restaurant. Captain D's LLC has g
10/6/2004 12/1/2004 TravelCenters of America, Inc. Rip Griffin Truck Service Provides services and 120 TravelCenters of America Inc acquired 11 Rip 129
Center, Inc. goods to professional Griffin interstate travel centers from Rip Griffin
drivers and personal Truck Service Center Inc for $120 million in
travelers cash plus $1.1 million in assumed
environmental liabilities. In addition,
TravelCenters paid an amount for site ca
5/3/2004 7/1/2004 Castle Harlan, Inc. Oak Hill Capital Operates restaurants 340 Castle Harlan Inc acquired Caribbean 340
Management, Inc. Restaurants LLC, operator of 165 Burger King
restaurants in Puerto Rico, from Oak Hill Capita
Partners LP, which is a unit of Oak Hill Capital
Management Inc for US$340 million. Castle
Harlan also holds interests in o
2/13/2004 3/28/2004 Yucaipa Cos. LLC Piccadilly Cafeterias, Inc. Operates a chain of 80 Piccadilly Investments LLC, a subsidiary of The 114 0.4 573.6 (9.0) 315 (13) 0
cafeterias and seafood Yucaipa Cos, acquired Piccadilly Cafeterias Inc
restaurants for $80 million in cash. For the purpose of this
transaction, Diversified Investment Managemen
Group LLC co-founded Piccadilly Investments
with The Yucaipa Co
© 2007 FactSet Research Systems Inc. All Rights Reserved.

EXHIBIT 10
Exhibit 10 illustrates what are considered to be the most comparable transactions.

Exhibit 10 also shows the application of a market multiple to the subject company’s
relevant financial performance metrics. The number of transactions is further reduced
due to the limited information presented by Capital IQ and Mergerstat, business
description of the target and size of the transaction.
Exhibit 10
Applebees
Business Valuation
Market Approach: Guideline Company Transactions Analysis
Seller's Percentage Premium BEV / BEV / BEV /

Close Date Seller (1) Buyer LTM Net Sales Acquired 1 Day 5 Day 30 Day BEV Revenue EBITDA EBIT
December 13, 2006 Lone Star Steakhouse & Saloon Inc. Lone Star Funds $ 310.2 100% 42.0% 15.0% 23.9% 563.8 1.82 12.57 26.56
December 6, 2006 Logan's Roadhouse, Inc. Black Canyon Capital LLC, 320.5 100% 10.7% 25.0% 31.0% 653.4 2.04 13.66 19.48
November 1, 2006 Ryan's Restaurant Group Inc. Buffets Inc. 480.0 100% 12.4% 19.0% 22.5% 860.8 1.79 9.16 14.69
August 21, 2006 Real Mex Restaurants Inc. Sun Capital Partners, Inc. 298.6 100% 18.5% 27.0% 48.3% 646.4 2.16 11.42 16.69
March 8, 2006 Dave & Buster's Inc. Wellspring Capital Management, L.L.C. 123.8 100% 30.0% NA 2.1% 370.8 3.00 5.88 17.39
July 7, 2004 Mimi’s Cafe Inc. Bob Evans Farms Inc. (NasdaqNM:BOBE) 102.3 100% 25.0% NA 10.7% 174.5 1.71 9.89 17.82
High 42.0% 0.27 0.65 3.00 13.66 26.56

Median 25.0% 0.22 0.24 1.82 10.99 17.82
Average 0.26 0.21 0.29 1.99 10.51 19.30
Low 0.11 0.15 0.02 1.42 5.88 14.69
Notes:
(1) Sellers' primary SIC Codes in 5411 (Grocery Stores) or 5141 (Groceries Wholesale).
C:\Documents and Settings\nscerbo\Desktop\Learning Initiative\Learning Initiative Cap IQ Final Model_unlinked.xls

EXHIBIT 11
Exhibit 11 provides indications of value prior to the application of discounts and

premiums.
, Page 1 of 3 Exhibit 11
Applebees
Business Valuation
Market Approach: Guideline Company Method
BEV / Revenue BEV / EBITDA BEV / EBIT Concluded Fair Value
Weightings
Applebees Financial Metric $ 1,296 $ 208 $ 144
Concluded LTM Multiple 1.5x 8.8x 13.5x

Equals: Fair Value of Business Enterprise 50% 1,921 1,834 1,935
Concluded LFY Multiple 1.5x 8.7x 13.6x

Concluded 2 FY Average Multiple 1.6x 9.2x 14.0x


Forecasted Multiple 2.0x N/A N/A

Equals: Fair Value of Business Enterprise 0% 2,551 - -
Preliminary Indication of Fair Value of Business Enterprise -

1,910 1,819 1,944
Marketable, Minority Basis
Less: Total Debt 194 194 194
Less: Preferred Stock - - -
Preliminary Indication of Fair Value of Equity - Marketable,

1,716 1,625 1,750
Equals: Minority Basis
Less: Discount for lack of Marketability of 0% - - -
Equals: Fair Value of Operating Equity - Non-Marketable, Minority Basis $ 1,716 $ 1,625 $ 1,750
Weighting 50% 25% 25%
Concluded Fair Value of Operating Equity - Non-Marketable, Minority Basis $ 858 $ 406 $ 438 1,702

, Page 1 of 3 Exhibit 11
Applebees
Business Valuation
Market Approach: Guideline Company Transactions Method
BEV / Revenue BEV / EBITDA BEV / EBIT
Concluded Multiple 2.0x 10.5x 19.3x
Preliminary Indication of Fair Value of Business Enterprise - Marketable Controlling Basis 2,579 2,181 2,775
Less: Preferred Stock
Equals: Fair Value of Operating Equity - Marketable, Control Basis 2,385 1,986 2,581
Less: Discount for lack of Control of 0% - - -

Equals: Fair Value of Operating Equity - Marketable, Minority Basis 2,385 1,986 2,581
Less: Discount for lack of Marketability of 0% - - -

Equals: Fair Value of Operating Equity - Non-Marketable, Minority Basis 2,385 1,986 2,581
Concluded Fair Value of Operating Equity - Marketable, Control Basis $ 715 $ 596 $ 1,032 2,344

EXHIBIT 11A
Exhibit 11A details the results of applied discounts and premiums to the concluded
value. Note that the Mergerstat data for the subject industry indicates a 20%
transaction premium, which includes a 5% premium regarding buyer-specific
synergies. The Discount for Lack of Marketability is 20%. When using the Guideline
Transaction Method, a discount for lack of control of 13% is applied using the
formula 1-(1/1.15).
Applebees
Business Valuation
Market Approach: Guideline Company Method
BEV / Revenue BEV / EBITDA BEV / EBIT Concluded Fair Value
Weightings
Concluded LTM Multiple 1.5x 8.8x 13.5x

Concluded LFY Multiple 1.5x 8.7x 13.6x



Forecasted Multiple 2.0x N/A N/A

Equals: Fair Value of Business Enterprise 0% 2,551 - -
Preliminary Indication of Fair Value of Business Enterprise -

1,910 1,819 1,944
Marketable, Minority Basis
Less: Preferred Stock - - -
Preliminary Indication of Fair Value of Equity - Marketable,

1,716 1,625 1,750
Equals: Minority Basis
Less: Discount for lack of Marketability of -20% (343) (325) (350)
Equals: Fair Value of Operating Equity - Non-Marketable, Minority Basis $ 1,373 $ 1,300 $ 1,400
Concluded Fair Value of Operating Equity - Non-Marketable, Minority Basis $ 686 $ 325 $ 350 1,361

Applebees
Business Valuation
Market Approach: Guideline Company Transactions Method
BEV / Revenue BEV / EBITDA BEV / EBIT
Concluded Multiple 2.0x 10.5x 19.3x
Preliminary Indication of Fair Value of Business Enterprise - Marketable Controlling Basis 2,579 2,181 2,775
Less: Preferred Stock
Equals: Fair Value of Operating Equity - Marketable, Control Basis 2,385 1,986 2,581
Less: Discount for lack of Control of -13% (311) (259) (337)

Equals: Fair Value of Operating Equity - Marketable, Minority Basis 2,074 1,727 2,244
Less: Discount for lack of Marketability of -20% (415) (345) (449)

Equals: Fair Value of Operating Equity - Non-Marketable, Minority Basis 1,659 1,382 1,795
Concluded Fair Value of Operating Equity - Marketable, Control Basis $ 498 $ 415 $ 718 1,630

EXHIBIT 12
Exhibit 12 provides preliminary conclusions on using the Market Approach and the
weighting of the Guideline Public Company Method and Guideline Transaction
Method.
Exhibit 12
Applebees
Business Valuation
Fair Value Summary
Equity Weighted
Summary Value Weighting Value Exhibit
Market Approach: Guideline Company Method $ 1,361 80% $ 1,089
Market Approach: Guideline Transaction Method $ 1,630 20% $ 326
Fair Value of Operating Equity $ 1,415

EXHIBIT 12A
Exhibit 12A provides the conclusion to the case study which indicates fair market
value of 100% of the shareholders’ equity on a non-marketable, minority interest
basis.
Note that the following non-operating assets are added and liabilities subtracted to
arrive at final estimate of value.
Assets:
Excess cash on books = $150mm
Vacation home for CEO use = value of $10mm
Loan Receivable from Chairman of Board = $3mm
Liabilities:
Mortgage on vacation home for CEO use = $2mm
Exhibit 12A
Applebees
Business Valuation
Fair Value Summary
Equity Weighted
Summary Value Weighting Value Exhibit
Market Approach: Guideline Company Method $ 1,361 80% $ 1,089
Market Approach: Guideline Transaction Method $ 1,630 20% $ 326
Fair Value of Operating Equity $ 1,415
Add: Excess Cash 150

Add: Working Capital Adjustment -
Add: Other Non-operating Assets - Vacation Home 10
Add: Other Non-operating Assets - Loan Receivable 3
Less: Non-operating Liabilities - Mortgage on Vacation Home 2
Fair Value of Shareholders' Equity $ 1,576

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EXHIBIT 1

Market Approach Case

Applebee’s International, Inc. (“Applebee’s) has engaged Deloitte Financial Advisory

Applebee’s Company Overview1

Applebee’s® International, Inc., headquartered in Overland Park, Kansas, develops,

Each Applebee’s Neighborhood Grill & Bar is designed as an attractive, friendly,

Structure of industry – Casual Dining

Source: The Freedonia Group, Inc.

Full Service Restaurants

ASSETS 2004 2005 2006 9/24/2006

Property, Plant & Equipment

LIABILITIES & CAPITAL

2004 2005 2006 9/24/2006

CAPITAL EXPENDITURES $ 104.6 $ 139.4 $ 122.9 $ 125.2

GROSS MARGIN [D5] 25% 23% 22% 22%

OPERATING MARGIN [D6] 15% 13% 11% 11%

NET MARGIN [D7] 10% 8% 6% 6%

[D1] LTM = Last Twelve Months

2004 2005 2006 9/24/2006

DEBT COVERAGE ANALYSIS

[F1] Calculated on a book basis.

Exhibit 2 provides some Capital IQ Company Screening Reports for potential

Capital IQ Company Screening Report

McDonald's Corp. (NYSE:MCD)

Darden Restaurants Inc. (NYSE:DRI)

Capital IQ Company Screening Report

Brinker International Inc. (NYSE:EAT)

Capital IQ Company Screening Report

Wendy's International Inc. (NYSE:WEN)

Capital IQ Company Screening Report

Ruby Tuesday, Inc. (NYSE:RT)

Capital IQ Company Screening Report

Cracker Barrel Old Country Store, Inc.

Capital IQ Company Screening Report

Ameristar Casinos Inc. (NasdaqNM:ASCA)

Capital IQ Company Screening Report

PF Chang's China Bistro Inc. (NasdaqNM:PFCB)

Capital IQ Company Screening Report

Lone Star Steakhouse & Saloon Inc.

Doctor's Associates Inc.

Capital IQ Company Screening Report

Perkins & Marie Callender’s Inc.

California Pizza Kitchen Inc. (NasdaqNM:CPKI)

Capital IQ Company Screening Report

Real Mex Restaurants Inc.

Investors Management Corporation

Capital IQ Company Screening Report

Financial data provided by

Estimates data provided by

Historical Equity Pricing Data supplied by

Fixed income security data provided by

Fixed income security and pricing data provided by

Standard & Poor's ratings information is updated on a daily basis.

Ownership data provided by Thomson Financial

Date: March 1, 2007

To: Work Paper Files

From: Valuation Analyst

Subject: Selection of Public Guideline Companies

Subject Company Name: Applebee’s International Inc.

Subject Company SIC Code(s): SIC 5812, Full Service Restaurants

Subject Company Description:

Applebee’s® International, Inc., headquartered in Overland Park, Kansas, develops, franchises

Public Guideline Selection Process

1. Searched Capital IQ and OneSource based on SIC Code 5812