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Relatively High Debt to EBITDA Ratio Detected in Shares of Luby'S Inc in the Restaurants Industry (LUB, DIN, WEN, BH, DNKN)

By Amy Schwartz

Below are the three companies in the Restaurants industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.

Luby'S Inc ranks highest with a a debt to EBITDA ratio of 7.7. Dineequity Inc is next with a a debt to EBITDA ratio of 6.2. Wendy'S Co/The ranks third highest with a a debt to EBITDA ratio of 5.9.

Biglari Holdings follows with a a debt to EBITDA ratio of 5.3, and Dunkin' Brands G rounds out the top five with a a debt to EBITDA ratio of 5.3.

SmarTrend recommended that its subscribers protect gains by selling shares of Dunkin' Brands G on June 21st, 2017 by issuing a Downtrend alert when the shares were trading at $55.65. Since that call, shares of Dunkin' Brands G have fallen 7.2%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest debt to ebitda ratio luby's inc dineequity inc wendy's co/the biglari holdings dunkin' brands g

Ticker(s): LUB DIN WEN BH DNKN