Bob Evans is a chain of family restaurants headquartered in New Albany, Ohio.
Bob Evans makes an attractive net lease tenant because of their investor friendly leases. In a series of sale-leasebacks, investors have been purchasing 20 year triple net leases with 2% annual increases. The triple net nature of the leases frees investors from any landlord responsibilities while the annual increases provide a great hedge against inflation.
Bob Evans began as one man selling sausage from his farm. As the demand for his sausage grew he built a small restaurant. Recently Bob Evans was split between the restaurant business and wholesaler of refrigerated side dishes. Golden Gate Capital purchased the restaurant half of the business in early 2017 while the rest of the business was bought by Post Holdings in January of 2018. Bob Evans has over 500 locations in 18 states, primarily in the Midwest, Mid-Atlantic, and Southeast.