Tenant Description
Chick-Fil-A, Inc. is the largest quick-service chicken restaurant and 3rd largest quick-service restaurant chain in the United States (based on domestic annual sales.) It is headquartered in College Park, Georgia. Supported by a strong brand and award-winning restaurant designs and architecture, the family-owned, privately-held company is strategically expanding and uniquely positioned for continued future growth.
When purchasing a Chick-fil-A ground-leased property, investors are buying the real estate upon which the Chick-fil-A restaurant sits. These ground-leased properties provide additional investment security given the nature of the real estate investment made by Chick-fil-A’s real estate team, which generally pays for the design, construction, and equipment for all new stores. Finally, from a real estate fundamentals perspective, knowing that store locations and developments are chosen based on corporate goals for target markets; it is not surprising that
The first Chick-fil-A restaurant arrived in 1967, and today the fast-chicken giant boasts more than 2,300 locations in 47 states and Washington, DC.
What To Look For When Buying A Chick-Fil-A
Private company, They are almost always Ground Leases (see our blog on Ground Leases), Low Cap Rates
What We Like About Chick-Fil-A
Corporate guaranteed, Phenomenal Real Estate (new stores are typically located in high-traffic areas and are often found as outparcel/pad sites at major shopping centers), Rent Increases in Primary Term
Competition
KFC, Pollo Tropical
What Is Sold In A Chick-Fil-A
Chicken Sandwiches
Chick-Fil-A Website
Corporate Office Location
5200 Buffington Rd. – Atlanta, GA, 30349.
Fast Facts
The company operates more than 2,300 restaurants, primarily in the United States with locations in 47 states and plans for a location in Hawaii to be the 48th state. The restaurant serves breakfast before transitioning to its lunch and dinner menu.
Many of the company’s values are influenced by the religious beliefs of its late founder, S. Truett Cathy, a devout Southern Baptist. All Chick-fil-A restaurants are closed for business on Sundays.
Chick-fil-A is notorious for having strong franchised restaurant operators, proven by the fact that Chick-fil-A maintains a franchisee turnover rate of less than 5% per year. The company only accepts about 0.4% of the applicants who apply every year. For net lease investors, it is reassuring to know that Chick-fil-A NNN leases have a corporate guarantee by Chick-fil-A, Inc.
