Restaurant Listings Analysis
A 35-year-old West Philadelphia pizzeria claims $90,000 EBITDA on $450,000 in revenue and the seller is asking $95,000. No SDE disclosed. No lease terms confirmed. FF&E listed at $5,000 for a full commercial kitchen. Something does not add up. Educational content — not investment advice.
By Justin K. Sellers · 11 min read · March 7, 2026
A 35-year-old pizzeria in West Philadelphia is listed for sale at $95,000.
The broker reports $450,000 in annual revenue and $90,000 in EBITDA.
Cash flow (SDE) is not disclosed.
That's a 1.06x EBITDA multiple on a restaurant that has been operating since 1989.
According to Peak Business Valuation's restaurant industry data, restaurants typically transact at EBITDA multiples between 2.80x and 3.65x. For pizza businesses specifically, pizza EBITDA multiples generally range from 3.0x to 5.0x.
This listing is priced at 1.06x EBITDA.
Something is wrong.
Live Listing — March 7, 2026Disclaimer: This is educational content, not investment advice. Listing availability changes. Financials need independent verification. Listing information summarized here is derived from publicly available marketing materials and may not reflect the full broker listing or current terms. Always conduct your own due diligence and seek qualified professional help before making acquisition decisions.
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- Asking Price: $95,000 - Annual Revenue: $450,000 - Cash Flow (SDE): Not Disclosed - EBITDA: $90,000 - Established: 1989 (~35 years operating)
- Location: Philadelphia, PA (Philadelphia County) - Size: 1,200 sq ft + usable basement - Monthly Rent: $2,500 - Lease: Expiration shown as 01/01/1970 — data error, actual terms unknown - Seating: Not disclosed - FF&E Value: $5,000 (included in asking price) - Inventory: Not disclosed
- Employees: 6 - Hours: Not disclosed - Services: Pickup, delivery (DoorDash, Uber Eats, Grubhub, ezCater, Slice) - Liquor License: Not mentioned - Training: Not disclosed - Reason for Sale: Not disclosed
"Turnkey opportunity to own a well-established, high traffic pizzeria and grill in one of west Philadelphia's most vibrant neighborhoods! Located on busy Haverford Avenue, this Pickup and delivery has been serving the local community and student population for years — earning a loyal customer base and consistent sales."
Key features listed: - Prime location near multiple universities and student housing - 35 years of goodwill and brand recognition - Delivery partnerships on five platforms: DoorDash, Uber Eats, Grubhub, ezCater, Slice - Customer database included - "High opportunity to expand hours, menu"
- Asking price: $95,000 - Reported EBITDA: $90,000 - EBITDA multiple: 1.06x - SDE: Not disclosed - Revenue multiple: $95,000 / $450,000 = 0.21x
Industry Benchmark:According to Peak Business Valuation's restaurant industry data, restaurants transact at EBITDA multiples between 2.80x and 3.65x, and revenue multiples between 0.32x and 0.48x.
We Sell Restaurants reports SDE multiples typically range from 1.5x to 3x for small to mid-sized restaurants. For the pizza segment, EBITDA multiples generally range from 3.0x to 5.0x.
This listing: 1.06x EBITDA. 0.21x revenue.
Both multiples are dramatically below industry norms. If the financials are real, this business should be listed at $252,000–$328,500. At $95,000, someone is leaving $150,000–$235,000 on the table — or there is something this listing isn't telling you.
A business priced this far below market value has one of two explanations. Either the seller has a compelling reason to exit fast, or the numbers reported don't reflect what a new owner will actually experience.
Your job is to find out which one this is before you hand over $95,000.
At 1.06x EBITDA, the price is so far below market that "why" becomes the only relevant question.
Here are five reasons a 35-year-old Philadelphia pizzeria might be priced this low.
According to We Sell Restaurants, SDE is the standard valuation method for small to mid-sized restaurants because it includes net profit plus the owner's salary, providing a clearer picture of the financial benefit an owner-operator can expect. EBITDA does not add back owner compensation. That gap matters.
Translation: If the current owner pays themselves $50,000/year, the real SDE is approximately $140,000 — putting fair value at $300,000–$414,000 on standard multiples. Disclosing only EBITDA while omitting SDE is an unusual choice for a small owner-operated business.
The question: Why is SDE withheld when EBITDA is disclosed — and what would the add-back reveal about the owner's actual compensation? Level 2 Decision: - PASS if seller provides full P&L with owner compensation clearly itemized - FAIL if seller declines to provide P&L or owner salary breakdownIndustry benchmarks recommend operators target occupancy cost between 7–9% of sales, with anything above 10% beginning to seriously impair profitability. At $2,500/month ($30,000/year) on $450,000 in revenue, this location's occupancy cost is 6.7% — within the healthy range. That's a favorable number.
Translation: A 35-year-old restaurant with favorable rent is a genuine asset — if the lease is real, transferable, and has meaningful term remaining. A lease expiring in 6 months with no renewal option is a liability that negates every other positive in this listing.
The question: What are the actual lease expiration, renewal options, and transfer terms — and does the landlord need to approve a new tenant? Level 2 Decision: - PASS if lease has at least 3 years remaining with renewal options and transfers without landlord veto - FAIL if lease expires within 12 months, doesn't transfer, or requires landlord approval that isn't already securedIndustry analysis notes that equipment value must be accounted for separately in pizza business valuations. Two commercial walk-in coolers alone typically cost $8,000–$15,000 each new. A commercial pizza oven runs $5,000–$20,000. A dough mixer is $2,000–$8,000.
Translation: The equipment in this facility almost certainly cost $60,000–$100,000 or more to purchase new. Declaring all of it at $5,000 means one of three things: the equipment is so old or damaged it has little value, asset value is artificially deflated, or some equipment carries financing liens.
The question: What is the actual age and condition of the equipment — and does a UCC lien search confirm the FF&E is owned free and clear? Level 2 Decision: - PASS if itemized equipment list is provided and UCC search is clean - FAIL if seller declines to provide equipment details or UCC search reveals active financing encumbrancesIndustry financial models show that 15% store-level EBITDA is the industry standard for a moderately successful pizza store. Margins of 20–25% are possible but require exceptional operational efficiency. Additional analysis shows EBITDA margins of 15–20% represent the upper range for well-run pizza operations, with net profit margins typically reaching only 5–10%.
Translation: An estimated 20% EBITDA margin is achievable in pizza — but it is not typical. Claiming it without documentation invites scrutiny. If the reported EBITDA includes aggressive add-backs or deferred maintenance, the real EBITDA may be materially lower.
The question: What is included in the EBITDA calculation — and does a qualified accountant's review confirm the margin is legitimate and transferable to a new owner? Level 2 Decision: - PASS if verified P&L with itemized cost categories supports the claimed EBITDA margin - FAIL if EBITDA is based on estimated or adjusted figures that don't appear in tax returnsWe Sell Restaurants notes that approximately 70% of restaurant deals over $150,000 involve SBA financing, and lenders expect to understand seller motivation as part of due diligence.
Translation: At this price, the seller is accepting roughly 12–13 months of their own reported cash flow for a 35-year-old business. That is an extraordinary discount. The absence of any stated reason compounds every other question in this listing.
The question: Why is a seller with $90,000 in reported annual EBITDA accepting $95,000 — and what is the real motivation driving this price? Level 2 Decision: - PASS if seller provides a credible, verifiable explanation for pricing - FAIL if seller cannot or will not explain why the price is this far below fair valueNot generic questions. These are specific to what this listing does and doesn't disclose.
"Can you provide the full lease agreement — including expiration date, renewal options, monthly rent schedule through renewal, and the process for transferring the lease to a new owner?"
What you're listening for: - ✅ Good: "Lease runs through [2029+], transfers with landlord approval, and we have a 5-year renewal option at current rent." - ⚠️ Concerning: "We're renegotiating with the landlord right now — we can get you terms." - ❌ Red flag: "The lease is month-to-month" or "We'd need landlord approval and it's not guaranteed.""SDE isn't disclosed in the listing. Can you provide the full P&L and explain exactly how the $90,000 EBITDA was calculated — including the current owner's annual compensation and any add-backs included?"
What you're listening for: - ✅ Good: "Owner takes a salary of $[X]. P&L is available showing all line items. Tax returns match." - ⚠️ Concerning: "The owner doesn't take a formal salary — he just takes draws." - ❌ Red flag: "EBITDA is estimated based on our analysis" or refusal to produce P&L."The listing shows $5,000 for FF&E on a fully equipped commercial kitchen including two walk-in coolers, pizza oven, and dough mixer. Can you provide an itemized equipment list with approximate ages — and confirm there are no UCC liens or financing on the equipment?"
What you're listening for: - ✅ Good: Itemized list provided. Equipment ages disclosed. UCC search confirms no liens. - ⚠️ Concerning: "The equipment is old but functional — we priced it conservatively." - ❌ Red flag: Refusal to provide equipment details or UCC search reveals active liens."Why is the seller pricing this at $95,000 when reported EBITDA is $90,000 — less than 13 months of earnings? What is driving the seller's motivation and timeline?"
What you're listening for: - ✅ Good: A specific, verifiable personal reason — retirement, relocation, health, estate — that credibly explains urgency without operational implication. - ⚠️ Concerning: Vague responses about "moving on to other ventures." - ❌ Red flag: Inability or unwillingness to give a clear answer about seller motivation."Can you provide year-by-year revenue figures since 2020 — and are the most recent two years' tax returns available for buyer review?"
What you're listening for: - ✅ Good: Consistent or growing revenue trend. Two years of tax returns provided matching P&L figures. - ⚠️ Concerning: "Revenue has fluctuated — there were some slow years recently." - ❌ Red flag: Tax returns show materially lower revenue or income than the listing claims.→ Schedule site visit and engage a qualified restaurant accountant for quality of earnings review
If broker won't answer OR answers confirm problems:→ WALK AWAY
Disclaimer: This is educational content, not investment advice. Listing availability changes. Financials need independent verification. Listing information summarized here is derived from publicly available marketing materials and may not reflect the full broker listing or current terms. Always conduct your own due diligence and seek qualified professional help before making acquisition decisions.
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The price on this listing is either the best deal in West Philadelphia or a red flag wearing a bow. There is no in-between at 1.06x EBITDA.
Industry data shows restaurants typically transact between 2.80x and 3.65x EBITDA. At those multiples, a business reporting $90,000 EBITDA should list between $252,000 and $328,500. This one is listed at $95,000.
Most likely scenarios: 1. The seller has a compelling personal reason to exit quickly and has accepted a significant financial discount to close fast. This happens. If true and financials hold up, this is an exceptional opportunity for a prepared buyer. 2. The $90,000 EBITDA figure includes aggressive add-backs or accounting adjustments that would not transfer to a new owner. A new owner's actual cash flow could be materially lower. 3. The lease situation is worse than disclosed. The 1970 expiration date is clearly a data error, but the actual lease may be expiring soon or non-transferable. A business with no lease is a business with no location. 4. The equipment listed at $5,000 carries undisclosed liens or is near end-of-life, creating capital requirements the buyer would need to fund shortly after closing. Before making any offer:Request the full lease agreement, two years of tax returns, a complete P&L, and an itemized equipment list. Engage a qualified accountant to independently verify the EBITDA figure before signing anything. Run a UCC lien search on the business.
Fair value estimate (if all checks out):IF lease is solid, EBITDA is verified at $90,000, and FF&E is clean: - Fair value range: $252,000–$328,500 (2.80x–3.65x EBITDA) - Revenue check: $450,000 x 0.32x–0.48x = $144,000–$216,000
At $95,000 asking, a verified deal is priced at a 62–71% discount to EBITDA-based fair value.
Your job: Find out why before you wire anything.
[BROKER_CARD]
This analysis uses publicly available listing information for educational purposes. It applies the evaluation framework from How to Buy a QSR Restaurant: The Complete Buyer's Guide. For a broader look at what any listing won't show you before you dig, see What a Restaurant Listing Doesn't Tell You.
Research conducted March 7, 2026.
For corrections: justin@qsrresearchhub.com
*This listing was active at time of publication. Listing links may expire after sale or withdrawal — this is expected for active market listings.*
1. Peak Business Valuation. "Valuation Multiples for a Restaurant." November 2024. https://peakbusinessvaluation.com/valuation-multiples-for-a-restaurant/
2. Sofer Advisors. "How to Value a Pizza Business: Expert Guide for 2025–2026." December 2025. https://soferadvisors.com/insights/blog/how-to-value-a-pizza-business-expert-guide-for-2025-2026/
3. We Sell Restaurants. "How to Value a Restaurant Business in 2025." 2025. https://blog.wesellrestaurants.com/how-to-value-a-restaurant-business-in-2025-a-practical-guide-for-buyers-and-sellers
4. The Fork CPAs. "The Ideal Percentage Rent for Your Restaurant." May 2024. https://theforkcpas.com/negotiating-the-ideal-percentage-rent/
5. BNG Payments. "How To Increase Your Pizza Profit Margin." https://bngpayments.net/blog/pizza-profit-return/
6. Toast. "Restaurant Profit Margins: Average Restaurant Margins and How to Improve Them." Industry benchmarks: pizza restaurant store-level EBITDA 15–20% for well-run operations; net profit margins typically 5–10%. https://pos.toasttab.com/blog/restaurant-profit-margins
7. BizBuySell. "Established Pizzeria, Since 1989." Ad #2320535. Accessed March 2026.