Does the Adjusted EBITDA calculation for Bimbo Foods Bakeries Distribution include intercompany royalties?

According to the 2025 FDD, the Adjusted EBITDA calculation for Bimbo Foods Bakeries Distribution does not include intercompany royalties. The document specifies that the company calculates Adjusted EBITDA by taking the operating profit and adding depreciation, amortization, impairment, and other non-cash items. These non-cash items primarily consist of adjustments for the valuation of MEPPs (Multi-Employer Pension Plans). The FDD also clarifies that this Adjusted EBITDA calculation differs from Conformed EBITDA, as mentioned in Note 13.

For a prospective franchisee, this means that when evaluating the financial performance of Bimbo Foods Bakeries Distribution, the Adjusted EBITDA figure is presented without considering royalties paid between related companies. This can be useful for understanding the core operational profitability of the company, excluding the impact of intercompany financial arrangements. Franchisees should be aware that this metric provides a specific view of profitability and may not reflect the full financial picture, especially when intercompany transactions are significant.

It is important for potential franchisees to understand the distinction between Adjusted EBITDA and other financial metrics like Conformed EBITDA, as they may provide different insights into the company's financial health. Understanding how these figures are calculated and what they include or exclude is crucial for making informed investment decisions. Franchisees should consult with financial advisors to fully understand the implications of these metrics in the context of their investment.