Church’s Chicken TENANT OVERVIEW


Net Lease Advisor Tenant Churchs

Pros

  • NNN lease eliminates landlord responsibilities
  • Increases in base term on most leases
  • Several lease extensions of five years each

Cons

  • Private company
  • Must look closely at performance of franchisor across all locations

Tenant Description

The Atlanta-based quick-service restaurant chicken chain is currently expanding by partnering up with franchisors to expand in Florida and Texas.

The rapid growth and strong sales of Church’s Chicken have made it a valuable tenant in the net lease market. With flexible blueprints, Church’s can fit into a variety of spaces in strong locations that could be easily leased out should Church’s vacate.

Church's Chicken will be engaging in a significant domestic expansion with new franchising deals in the Southeast. In Tennessee, Volunteer Chicken LLC has secured the rights to open ten new restaurants throughout Nashville, Knoxville and Chattanooga. In Florida, Florida Chicken LLC has secured the right to open 10 new restaurants in and around Tampa, St. Petersburg, and Orlando. After the completion of each of these deals, a new ten restaurant deal is expected to follow in 2021.

Founded in San Antonio, TX in 1952 by George W. Church, Church's Chicken® is one of the largest quick service restaurant chicken chains in the world. Church's® specializes in Original and Spicy Chicken freshly prepared throughout the day in small batches that are hand-battered and double-breaded, Tender Strips®, sandwiches, honey-butter biscuits made from scratch and freshly baked, and classic, home-style sides all for a great value.

Church's® (along with its sister brand Texas Chicken® outside the Americas) has more than 1,650 locations in 29 states and more than 23 global markets with system-wide sales of $1.2 billion.

Average Cap Rate
6.88%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $1,095,121
NOI $75,000
$/Square Foot $650
Building SF 1,700
Lot Size 0.3 - 1.0 Acres
Lease Term 20 Years
Escalations 10% Every 5 Years or 1.5% Annually
Stock Symbol N/A
Credit Rating
S&P N/A
Moody's N/A
Average Cap Rate Trend
6.56%
2015
6.88%
2016
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Houston, TX 6.00%
Albuquerque, NM 7.50%