HOME  |  ABOUT  |  NET LEASE 101  |  CONTACT  |  SUBSCRIBE



7-Eleven
Advance Auto Parts
Affordable Dentures
ALDI
Applebee's
Arby's
Ashley Furniture
AutoZone
Bank of America
BankUnited
BB&T Bank
Best Buy
BMO Harris Bank
Bojangles'
Burger King
Captain D's
Chase Bank
Chick-fil-A
Chipotle
Church's Chicken
Circle K
Cracker Barrel
CVS
Dairy Queen
DaVita
Dollar General
Dollar Tree
Dunkin' Donuts
Family Dollar
FedEx
Fred's Super Dollar
Fresenius Medical Care
Hardee's
Hobby Lobby
IHOP
KFC
Kohl's
Mattress Firm
McDonald's
Napa Auto Parts
O'Reilly Auto Parts
Panera Bread
PDQ
Pep Boys Auto
PNC Bank
Red Lobster
Rite Aid
Sheetz
Shell Oil
Sherwin-Williams
Starbucks
Steak 'n Shake
SunTrust
Taco Bell
TD Bank
Tractor Supply Co.
Verizon
Walgreens
Walmart
Wawa
Wegmans
Wendy's
Zaxby's
  Wendy's


Average Property & Lease

Average Sale Price$2,217,616
CAP Rate (12mo avg with 10+ lease term)5.68%
NOI$124,764
$/Square Foot$737
Building Size3,000 sf
Lot Size0.85 +/- acres
Lease Term20 Year NNN
Escalations10% Every 5 Years
CREDIT RATING
B
S&P
B2
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

When Wendy's International and Arby's parent company, Triarc Companies, merged in September 2008, they created the third-largest U.S. fast-food chain (behind only McDonald's and Yum! Brands). This merger formed the Wendy's/Arby's Group and altered the perception of both Wendy's net lease properties and Arby's net lease properties, with the introduction of new management and new menu concepts.

The underlying asset is typically a 4,000+/- SF building with a drive-thru window, situated on .5 - 1.0 acre of land. It is important to note that Wendy's franchises the majority of its locations. There are a number of various lease agreements and guarantors operating under the Wendy's banner. As a result, lease terms vary as do cap rates based on the size and strength of the operator and sales at a particular location. Generally the lease term is 20 years with 4 five year options with increases of 10% every 5 years.

Pros

Cons

  • Higher cap rates available
  • Engaged in heavy advertising to improve brand image and market penetration
  • Often new favorable NNN leases with good increases
  • Non-investment grade credit
  • Must look closely at performance of franchisor across all locations
  • Must review sales history at subject location
  • Not all leases require sales reporting
Tenant Description

Wendy's/Arby's Group, Inc., is the parent company of Wendy's International, Inc. (Wendy's) and Arby's Restaurant Group, Inc. (ARG), which are the franchisors of the Wendy's and Arby's restaurant systems.

Wendy's is engaged in the quick-service restaurant (QSR) business, operating, developing and franchising Wendy's restaurants. Te revenues from its restaurant business are derived from four principal sources: sales at Wendy's-owned restaurants; sales of bakery items and kid's meal promotional items to franchisees; franchise royalties received from all Wendy's franchised restaurants, and up-front franchise fees from restaurant operators for each new unit opened.

Each Wendy's restaurant offers a relatively standard menu featuring hamburgers and filet of chicken breast sandwiches and wraps, which are prepared to order with the customer's choice of condiments. Wendy's menu also includes chicken nuggets, chili, baked and French fried potatoes, freshly prepared salads, soft drinks, milk, Frosty desserts, floats and kids meals.


WENDY'S TREND
CAP Rate

2014 avg: 6.47%

2015 avg: 5.46%

RECENT SALES

Lilburn, GA

$765,000 | 7.25%

Jacksonville, FL

$5,850,000 | 7.5%

MORE INFO
www.wendys.com
Google Finance: WEN
Google News: WEN