• NNN lease eliminate landlord responsibilities
  • Average unit volumes for the chicken-and-biscuit concept continue increasing
  • Long-term growth plan to have 1,000 units open by 2020


  • No credit rating
  • Tough competition

Earnings Highlights

Earnings Summary
  • System-wide comparable restaurant sales increased 0.4%
  • Total revenues increased to $138.7 Million from $136.0 Million in the prior year fiscal quarter

Tenant Description

Bojangles’ is a quick-service restaurant based on distinctive flavor, high-quality products made-from-scratch, and a festive restaurant design with friendly service.

Bojangles' is a publicly traded company with a huge demand in the net lease world. The chain boasts 23 consecutive quarters of store sale growth and ranks top 5 for Fast Food by Zagat among large chains. Their freestanding stores features a 3,500 - 3,800 square foot building, and are usually situated on .8 - 1.50 acre of land. Bojangles' net leases properties provide a long-term investment with zero landlord responsibilities. Generally, the lease term is a 15-year NNN lease with 2-4 five (5) year options with increases of 7-10% every five (5) years. Some leases have an annual rental bumps ranging between 1.25% - 1.5%.

Bojangles' is a highly differentiated and growing restaurant operator and franchisor dedicated to serving customers high-quality food made from Southern recipes. Since their founding in Charlotte, North Carolina in 1977, their core menu centered on "chicken 'n biscuits" has remained largely unchanged. Bojangles has become an iconic brand with a cult-like following due to their famous, made-from-scratch biscuits baked every 20 minutes, their fresh, never-frozen bone-in fried chicken and their famous iced tea.

Bojangles' went public in May 2015 on the NASDAQ and have since expanded to over 700 restaurants. There are 309 company-operated restaurants and 407 franchised restaurants located in eleven states, including North Carolina, South Carolina, Georgia, Virginia, Tennessee, Alabama, Maryland, Florida, Kentucky, West Virginia and Pennsylvania, and the District of Columbia. Bojangles’ continues to grow, targeting the mid-south as an “area of opportunity”.

A typical Bojangles' restaurant is a modern, freestanding building, which is approximately 3,800 square feet in size and can seat approximately 70 customers. The restaurant locations are typically free standing urban or suburban locations, and are located on approximately one acre of land and include a drive-thru window and approximately 45 parking spaces. The development cost to build a Bojangles' restaurant requires an average investment of approximately $2.2 million. This cost includes: $0.6 million for land, approximately $1.3 million for the building construction, includes the building and site and soft costs, and approximately $0.3 million for equipment. , Bojangles’ primarily utilizes build-to-suit developments and equipment financing leases for their new company-operated restaurants, requiring minimal upfront cash investment. Each new restaurant under a build-to-suit development and equipment-financing lease typically requires an upfront cash equipment investment of approximately $85,000, and they target a year one cash-on-cash return of approximately 129%.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,413,908
NOI $147,731
$/Square Foot $650 - $700
Building SF 3,500 - 3,800
Lot Size 0.8 - 1.5 Acres
Lease Term 15 Years
Escalations Varies
Stock Symbol BOJA
Credit Rating
Moody's N/A
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Irmo, SC 5.85%
Lumberton, NC 7.00%
Morrow, GA 6.58%