EBITDA

Earnings before interest, tax, depreciation, and amortisation, a measure of operating profit used to compare and value businesses.

EBITDA stands for earnings before interest, tax, depreciation, and amortisation. It strips out financing and accounting effects to show the underlying operating profit of the business.

It is widely used to compare sites on a like-for-like basis and to value a restaurant group, because it reflects trading performance rather than how the business is financed. For day-to-day operating decisions, prime cost and net margin are the more actionable numbers.