Fast Food Tenant Report:
Chick-Fil-A
Last Update: June 19, 2020
4.24% CAP
2019 AVERAGE CAP RATE
4.30% CAP
2018 AVERAGE CAP RATE
LEASE GUARANTY
Corporate
AVERAGE SALES / UNIT
$4,090,00 / Unit
TOTAL NUMBER UNITS (USA)
2,623 Units
AVERAGE BUILDING SIZE
4,500 SF
AVERAGE SALES PRICE
$3,051,000
AVERAGE NOI (RENT)
$131,500 / Year
TOP STATE WITH UNITS
Texas (16%)
CREDIT RATING
N/A
AVERAGE LEASE TERM
20 Years
No Rating as privately owned but strong due to Corporate Guarantee
LOCATIONS MAP
TENANT PROFILE
Chick-fil-A, Inc. is the largest quick-service chicken restaurant chain in the United States, based on domestic annual sales. Supported by a strong brand and restaurant design, the privately-held company is expanding and perfectly positioned for continuous growth.
Chick-fil-A is well known for its strong franchised operators. This is made clear its low franchisee turnover rate which stands at less than 5% per annum. The company is highly selective about who it accepts. Only 0.4% of the applicants who apply for franchisee status every year are successful.
For net lease investors, it is reassuring that Chick-fil-A NNN leases have a corporate guarantee by Chick-fil-A, Inc.
When purchasing a ground-leased property, investors buy the real estate upon which the restaurant sits. These ground-leased properties provide additional investment security given that the Chick-Fil-A real estate team, will generally pay for the design, construction, and equipment for all new stores. It should also be noted that, from a real estate perspective, knowing that store locations and developments are chosen based on corporate goals for it's target markets; it is not surprising that new stores are usually situated in high-traffic areas and are often found as outparcel/pad sites at major shopping centers.
The first Chick-fil-A restaurant was established in 1967, and today there are more than 2,300 locations in 47 states and Washington, DC.
This tenant report has been prepared to provide summary, unverified financial and physical information about the subject tenant and to establish only a preliminary level of interest on the tenant or industry. The information contained herein is not a substitute for a thorough investigation. Marcus & Millichap, The Naran Group, or Neil Naran has not made any investigation, and makes no warranty or representation with respect to the information provided within this report, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this report has been obtained from sources we believe to be reliable; however, Marcus & Millichap, The Naran Group, or Neil Naran has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap, The Naran Group, or Neil Naran conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. By reviewing this report you agree to release Marcus & Millichap, The Naran Group, or Neil Naran and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or review of this report.
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Chick-Fil-A | 4.24% CAP |
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