DONATOS PIZZA

Data Based On: Net Sales data is provided for 116 franchisee-owned covered restaurants for 2025. Expense and EBITDA data is provided for 101 franchisee-owned covered restaurants for 2025, categorized into four weekly sales tiers.

* Average gross revenue and median gross revenue are directly from Table 3: Net Sales of Franchisee Covered Restaurants for the 2025 fiscal year (Page 4), based on a sample of 116 units. For EBITDA, gross profit, and net profit (operating profit), data is from Section II, Table 'Sales Ranges', for 101 Franchisee-Owned Covered Restaurants in the 2025 fiscal year (Page 5). Unit counts for each sales tier were extracted from subsequent paragraphs (Page 6): - Tier 1 ($10,001 - $15,000): 27 units - Tier 2 ($15,001 - $20,000): 42 units - Tier 3 ($20,001 - $25,000): 15 units - Tier 4 (Over $25,000): 17 units Total units for Section II = 27 + 42 + 15 + 17 = 101 units. Average weekly sales for each tier were estimated using midpoints for the first three tiers, and a conservative estimate for the highest tier: - Tier 1: $12,500.5 - Tier 2: $17,500.5 - Tier 3: $22,500.5 - Tier 4: $35,000 These weekly sales estimates were annualized by multiplying by 52 weeks. Weighted average annual net sales for the 101 units = (($12,500.5 * 27) + ($17,500.5 * 42) + ($22,500.5 * 15) + ($35,000 * 17)) * 52 / 101 units = $1,032,298.85. Weighted average EBITDA (dollar) was calculated by summing the total EBITDA dollars for each tier and dividing by the total 101 units: Total EBITDA = (($12,500.5 * 27 * 52 * -0.028) + ($17,500.5 * 42 * 52 * 0.077) + ($22,500.5 * 15 * 52 * 0.124) + ($35,000 * 17 * 52 * 0.139)) = $8,928,512.79 Average EBITDA = $8,928,512.79 / 101 = $88,401.12. EBITDA margin percentage = Average EBITDA / Average annual net sales (101 units) = $88,401.12 / $1,032,298.85 = 0.0856 (8.56%). Weighted average Cost of Goods Sold percentage was calculated similarly: Total COGS = (($12,500.5 * 27 * 52 * 0.323) + ($17,500.5 * 42 * 52 * 0.319) + ($22,500.5 * 15 * 52 * 0.317) + ($35,000 * 17 * 52 * 0.321)) = $33,026,057.99 Weighted average COGS % = $33,026,057.99 / ($1,032,298.85 * 101) = 0.3199 (31.99%). Average gross profit = Average annual net sales (101 units) * (1 - Weighted average COGS %) = $1,032,298.85 * (1 - 0.3199301745300098) = $702,035.30. Average net profit is considered equivalent to average EBITDA ($88,401.12) as per the provided cost structure, which defines EBITDA as Net Sales minus Cost of Goods Sold, Labor Costs, and Controllable Costs. Best guess profit low and high are estimated using the average annual sales of the 101 units multiplied by the lowest (-2.8%) and highest (13.9%) EBITDA percentages observed across the tiers: Low estimate = $1,032,298.85 * -0.028 = -$28,904.37. High estimate = $1,032,298.85 * 0.139 = $143,409.54.