Four-Wall EBITDA

The profit a single store or restaurant earns inside its own four walls: its sales less the cost of what it sold, its own staff, rent, rates and running costs, before any share of head office, distribution or other central costs. It shows whether each site pays its way and is the basis of the payback on a new one. Because central costs are left out, the four-wall EBITDA of every store added together is well above the company’s EBITDA.