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KFC Sample Property - The Naran Group
FAST FOOD TENANT REPORT:
Kentucky Fried Chicken (KFC)
Last Update: June 19, 2020
5.72% CAP
2019 AVERAGE CAP RATE
5.80% CAP
2018 AVERAGE CAP RATE
LEASE GUARANTY
Corporate & Franchisee
AVERAGE SALES / UNIT
$1,300,000 / Unit
TOTAL NUMBER UNITS (USA) 
3,987 Units
AVERAGE BUILDING SIZE
2,900 SF
AVERAGE SALES PRICE
$1,610,108
TOP STATE WITH UNITS
California (11%)
CREDIT RATING
MODERATE
AVERAGE NOI (RENT)
$92,100 / Year
AVERAGE LEASE TERM
15 Years 
Rating by Moody's: Ba2
LOCATIONS MAP
TENANT PROFILE

KFC is a fast food brand specializing in chicken. With more than 19,500 stores in more than 115 countries and territories, KFC (Also known as Kentucky Fried Chicken) is the world’s second largest restaurant chain after McDonald’s measured by sales, and the world’s most popular chicken brand. KFC’s menu has evolved from its legendary Original Recipe pressure fried chicken (“11 herbs and spices”) and side dishes to include grilled chicken, chicken strips, chicken sandwiches, hot wings, and desserts.

KFC was founded by “Colonel” Harland Sanders in Kentucky in 1930 during the Great Depression. The first Kentucky Fried Chicken franchise was opened in Salt Lake City, Utah in 1952 by Pete Harman, who introduced the “Bucket O’Chicken” in 1957. Harman also is credited with the brand’s slogan “It’s finger-lickin’ good.”

KFC Corp. is based in Louisville, Kentucky, and is a subsidiary of Yum! Brands, which also owns Pizza Hut and Taco Bell. Yum! Brands has almost 42,000 restaurants in more than 125 countries and territories, making it one of the world’s largest restaurant companies. Over the years, KFC franchisees have had the option to co-brand with Taco Bell or Pizza Hut.

According to company figures, the KFC system serves more than 12 million customers daily. Most purchases are take out or to-go, although the stores also offer in-store dining. In 2015, Yum! Brands announced that KFC would begin deliveries by 2016, further expanding its reach to customers. KFC engages in extensive marketing to keep the brand in consumers’ minds: KFC claims an average of more than 185 million people see a KFC commercial at least once a week. KFC is also a pioneer in the use of social media to attract and engage customers.

KFC franchisees receive ongoing support through The Yum! Value Network, which offers programs and support that include brand recognition, customer attraction, competitive advantage, franchise value system, multi-unit growth, economic stability, giving back to the community, development expertise, access to financing, solid business support, quality on-boarding and training, a reliable supply chain, and return on investment.

MARKET UPDATE

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. 

OTHER TENANT PROFILES
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