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  Panera Bread


Average Property & Lease

Average Sale Price$2,964,386
CAP Rate (12mo avg with 10+ lease term)5.27%
NOI$152,726
$/Square Foot$500
Building Size4,000 - 5,000 sf
Lot Size1.2 acres
Lease Term15 - 20 Years
EscalationsVaries
CREDIT RATING
N/A
S&P
N/A
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

Panera Bread is a chain of fast, casual restaurant and has become an increasingly popular net lease investment property due to their high consumer demand of healthy food choices. The properties are well located near major shopping centers, university and college campuses, and business centers.

Panera Bread net lease properties provide a long-term investment with no property management responsibilities. The average store size is approximately 4,500 square feet, which sits on a 1-1.5 acre land, often on a pad site. The lease term is usually 15-20 years plus one to two options. Many leases include rental increases between 5%-10% in base term and options periods.

Pros

Cons

  • Rental increase throughout primary term of the lease
  • Absolute NNN leases
  • High visibility location with premier retails
  • No Credit Ratings
  • Franchisee stores
Tenant Description

The Panera Bread® legacy began in 1981 as Au Bon Pain Co., Inc. The company was renamed Panera Bread and company's stock has grown exponentially, and today it has a market capitalization of $4.5 billion. Panera Bread's revenue in 2015 was $2.68 billion.

Panera Bread Cafes are located in urban, suburban, strip mall, and regional mall locations. They feature high-quality food in a warm, inviting, and comfortable environment with handcrafted artisan bread that is baked every day. The menu also features soups, salads, and sandwiches along with seasonal new dishes.

Panera Bread is a national bakery-cafe concept with 1972 stores, 901 are company-owned bakery- cafes and 1,071 are franchise-operated bakery-cafes located throughout the United States and Canada. Approximately 100 cafes are slated to open in 2016. The company is also testing new cafe? formats designed to expand Panera's reach into nontraditional locations.

Panera Bread was recognized as one of Business Week's "100 Hot Growth Companies." As reported by The Wall Street Journal's Shareholder Scorecard in 2006, Panera Bread was named as the top performer in the restaurant category for one-, five- and ten-year returns to shareholders.


PANERA BREAD TREND
CAP Rate

2015 avg: 5.30%

2016 avg: 5.25%

RECENT SALES

Broken Arrow, OK

$2,672,727 | 5.25%

MORE INFO
www.panerabread.com
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