OnlyFans Owner Is in Talks to Sell Porn-Friendly Site in Deal Worth $8 Billion

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What are profit margins there, like 15 percent?

Coli Brehs Financial Consultancy at your service :troll:
Sorry brehs but if you had dreams of owning a restaurant, I’m sorry to inform you that my estimate was generous :damn:

AI response, quoted below

Let’s break down the statement and question from Field Marshall Bradley step by step to understand the context, implications, and the financial concepts being discussed.


The Statement:


“That purchase price gotta be based off potential earnings. You can probably buy 80 percent of all the Chili’s across America for less than that.”


Interpretation:


  • Purchase Price Based on Potential Earnings: This suggests that when valuing a business (in this case, Chili’s restaurants), the price should be determined by how much profit or earnings the business could generate in the future, rather than other metrics like current revenue or asset value. This is a common valuation approach in business acquisitions, often using a multiple of earnings (like EBITDA—Earnings Before Interest, Taxes, Depreciation, and Amortization) to determine a fair price.
  • “80 percent of all the Chili’s across America for less than that”: This implies that the speaker believes the current valuation or asking price for Chili’s restaurants (or the chain as a whole) might be inflated. They’re suggesting that if the price were based on a more realistic assessment of potential earnings, you could acquire a significant portion (80%) of Chili’s locations for less than the current valuation.

Context of Chili’s:


Chili’s is a casual dining restaurant chain owned by Brinker International. As of my last knowledge update in 2023, Brinker International operated around 1,600 Chili’s locations worldwide, with the majority in the U.S. For simplicity, let’s assume there are about 1,200 Chili’s locations in the U.S. (a rough estimate based on historical data). If the speaker says “80 percent of all the Chili’s across America,” they’re referring to approximately 960 locations (80% of 1,200).


The speaker seems to be critiquing the valuation of Chili’s, suggesting that the chain (or its locations) might be overvalued if the purchase price isn’t tied to realistic earnings projections.





The Question:


“What are profit margins there, like 15 percent?”





  • Net Income: Revenue minus all expenses (cost of goods sold, labor, rent, taxes, etc.).
  • Revenue: Total sales from food, drinks, etc.

The question asks whether Chili’s profit margins are around 15%, which would mean that for every $100 in revenue, Chili’s keeps $15 as profit after all expenses.


Typical Profit Margins in the Restaurant Industry:


Profit margins in the restaurant industry vary widely depending on the type of restaurant (fast food, casual dining, fine dining), location, and operational efficiency. For casual dining chains like Chili’s, here are some general benchmarks based on industry knowledge up to 2023:


  • Net Profit Margins: Typically range between 5% and 10% for casual dining restaurants. This is because casual dining has higher operating costs (labor, rent, food costs) compared to fast food, and they face competition from both fast food and fast-casual chains.
  • Chili’s Specifically: Brinker International’s financial reports in the early 2020s showed that Chili’s operating margins (a slightly different metric, often before taxes and interest) were around 10–12% in good years. However, net profit margins for individual restaurants might be lower, often closer to 5–8%, depending on franchise agreements, location, and economic conditions.

A 15% net profit margin would be on the high side for a casual dining chain like Chili’s. It’s possible in exceptional circumstances (e.g., a highly efficient location with high sales volume), but it’s not typical for the industry or the chain as a whole.


Factors Affecting Chili’s Profit Margins:


  1. Food and Beverage Costs: These typically account for 25–35% of revenue in casual dining. Chili’s menu (burgers, ribs, margaritas) relies on ingredients like beef and alcohol, which can fluctuate in price.
  2. Labor Costs: Labor often makes up 30–35% of revenue, especially with rising minimum wages and staffing challenges post-COVID.
  3. Rent and Overhead: High for casual dining due to larger restaurant footprints and prime locations.
  4. Franchise Fees: Many Chili’s locations are franchised, meaning franchisees pay fees to Brinker International, which can eat into their margins.
  5. Economic Conditions: In 2025, inflation, consumer spending habits, and competition from fast-casual chains (like Chipotle) could pressure margins.

Given these factors, a 15% net profit margin seems optimistic. A more realistic estimate for Chili’s would be closer to 6–8% for individual locations, with corporate-operated stores possibly achieving slightly higher margins (around 10%) due to economies of scale.





Tying It Back to the Statement:


The speaker’s point about basing the purchase price on potential earnings aligns with the question about profit margins. If Chili’s profit margins are lower than 15%—say, 8%—then the potential earnings (and thus the valuation) of the chain would be lower than expected. This supports the speaker’s claim that you could buy 80% of Chili’s locations for less than the current asking price, as the valuation might be inflated relative to actual earnings potential.


Hypothetical Valuation Example:


Let’s do a rough calculation to illustrate:


  1. Assume Average Revenue per Chili’s Location: Based on industry data, a typical Chili’s might generate $3 million in annual revenue (this varies widely by location).
  2. Total U.S. Chili’s Revenue: For 1,200 locations, that’s $3 million × 1,200 = $3.6 billion in annual revenue.
  3. Net Profit at 8% Margin: If the net profit margin is 8%, then annual profit is $3.6 billion × 0.08 = $288 million.
  4. Valuation Multiple: Businesses like Chili’s are often valued at a multiple of EBITDA or net earnings. Casual dining chains might be valued at 5–8 times net earnings. Using a multiple of 6, the valuation would be $288 million × 6 = $1.728 billion for all U.S. locations.
  5. 80% of Chili’s: 80% of that valuation is $1.728 billion × 0.8 = $1.382 billion.

If the current asking price for Chili’s is, say, $2 billion (hypothetically), but the speaker believes the valuation should be closer to $1.728 billion based on realistic earnings, then their point makes sense—you could buy 80% of the chain for less than the current price.


If the profit margin were 15%, the profit would be $3.6 billion × 0.15 = $540 million, and the valuation at a 6x multiple would be $3.24 billion—much higher, and the current asking price might seem more reasonable.





Final Answer:


The profit margins for Chili’s are unlikely to be 15%. Based on industry standards and the operational realities of casual dining, a more realistic net profit margin for Chili’s locations in 2025 would likely be 6–8%, though corporate-level margins might reach 10–12% in a good year. The speaker’s point about buying 80% of Chili’s for less than the current price suggests they believe the chain is overvalued, possibly because the valuation isn’t properly tied to realistic earnings projections, which depend on these lower profit margins.


If you’d like more specific data on Chili’s financials, I’d need to search for recent reports from Brinker International—would you like me to do that?
 
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Sorry brehs but if you had dreams of owning a restaurant, I’m sorry to inform you that my estimate was generous :damn:

AI response, quoted below

:stopitslime:

It really wasn’t that deep… and that wasn’t a proper way to deduce valuation if that’s even possible via A.I. but you defending this to the point that you mos def have several only fans subscriptions at a minimum…. Real p*ssy >>>>>
 

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I really don’t want to believe this
Girls that wanted be actresses, models and entertainers are being groomed at 18 to take their clothes off for men online


But also it’s societal

Its parents not checking up on little Becky whose car needed its brakes fixed and you know how important her car is to her and then her brakes somehow got magically fixed

And you never wondered what position she felt she had to put herself in

And a society that raised such low moral standards that someone who is just becoming adult thinks taking their clothes off for money won’t affect them in life and is worth it as long as it gets them to money … so the they can have this years iPhone instead of the two year old one, so they can ride a car that they barely understand the model designation of and the history of that vehicle - it’s just the new shiny thing

America as a country has the biggest economic asset in the world

And that is the largest consumerist population there is, and we have been conditioned to be our own breed of consumer. Everything is disposable, we have to get the newest thing, we make nothing so we don’t mind that everything is made with planned obsolescence in mind

We don’t know the value of making something

Nobody in life orientates you to your purpose or asks you to consider that

We live in a capitalist society with an education system that has no focus on teaching students how to manage capital
 

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:stopitslime:

It really wasn’t that deep… and that wasn’t a proper way to deduce valuation if that’s even possible via A.I. but you defending this to the point that you mos def have several only fans subscriptions at a minimum…. Real p*ssy >>>>>
Why are you talking about defending anything here :what:

You been Field Marshalling a bit too long breh :francis:
 

CopiousX

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Im surprised the wide scale pirating of OF content doesn't seem to make a dent in their earnings or value
Convenience. It's the same reason that Netflix or Spotify or Gamestop make money. All these companies are trying to sell digital products that are very easy to get for free.



Often times it's far easier to just buy it directly from the official source, than to go through jankey servers or pirate sites. Especially if you value having it as soon as possible and the amount being asked is reasonable.

Personally I think the next step for only fans is to do what the music streaming sites did by charging a flat subscription model for all the content from each model, while giving the individual content creators an ever shrinking slice of the pie
 

Roid Jones

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Convenience. It's the same reason that Netflix or Spotify or Gamestop make money. All these companies are trying to sell digital products that are very easy to get for free.



Often times it's far easier to just buy it directly from the official source, than to go through jankey servers or pirate sites. Especially if you value having it as soon as possible and the amount being asked is reasonable.


Personally I think the next step for only fans is to do what the music streaming sites did by charging a flat subscription model for all the content, while giving the individual content creators an ever shrinking slice of the pie

That and people mistakenly think those janky servers and pirate sites are well known by everyone
 
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Digital Omen

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I ran with a cat back in the day that ended up becoming an editor at bang bros
I asked him "how are bang bros and other porn studios still in business when you can get all their shyt for free?"
He said "there's a hardcore fanbase that pays top dollar for HD content. They're porn connoisseurs and shyt. They pay a monthly sub and that money subsidizes the free shyt. bang bros owns all kinda tube sites and shyt, they all get ad dollars, it's all in the game."
I was like
:manny:
OF could do the same shyt. Go public one day and shyt.
 
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