Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for a restaurant is a measure of its operating performance and profitability. It represents the restaurant’s earnings before accounting for interest expenses, taxes, depreciation of assets, and amortization of intangible assets.
In the context of a restaurant, EBITDA provides a snapshot of how well the core business operations are generating profit, excluding certain non-operating expenses. It is often used as a key financial metric to assess operational efficiency and profitability, making it easier to compare the financial performance of different restaurants or the same restaurant over different periods.