This study examines the simultaneous relationship between financial performance (FP) and the degree of internationalization (DOI) in the restaurant industry to address the potential endogeneity bias in prior research. In previous studies, theoretical rationales and empirical results appeared to contradict each other. These inconsistencies could have resulted from a unilateral approach of analyzing firm performance and degree of internationalization. The results of this study suggest the existence of a simultaneous relationship between financial performance and the degree of internationalization.