GCG’s Q3 2022 Food & Beverage Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.
Key findings include the following:
- Q3 2022 saw moderate losses across most Food & Beverage (“F&B”) industry segments and results were in-line with the broader U.S. equity market as inflationary pressures and Federal Reserve interest rate hikes continued to pressure the market.
- The Restaurants segment was the strongest performer in Q3 2022, recording a median increase of 8.2% in share price over the quarter, significantly outperforming the broader market.
- In Q3 2022, the F&B sector recorded a 15% decrease in transaction volume compared to the previous quarter and a 23% decrease compared to Q3 2021. However, average deal value remained strong and increased to its highest level over the previous four quarters.
- The Packaged Foods and Meats category led activity, accounting for 37.3% of total F&B transaction volume. The Restaurant sector proved to be an active segment as well, comprising 26.7% of transaction volume.
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