Cracker Barrel TENANT OVERVIEW


Net Lease Advisor Tenant Cracker Barrel

Pros

  • Rental increase throughout primary term of the lease
  • Absolute NNN leases
  • Strong real estate fundamentals
  • Corporate guarantee

Cons

  • No credit ratings
  • Low comparable data

Earnings Highlights

Earnings Summary
  • Earnings per diluted share were $1.96, a 2.1% increase compared to $1.92 in the prior year first quarter
  • Compared to the prior year, comparable restaurant sales increased 1.4% and comparable retail sales increased 4.3%

Tenant Description

Cracker Barrel is one of the most popular casual dining restaurants and is a high demand net lease investment due to the successful concept.

It is uncommon to find a Cracker Barrel in the net lease market, because they do not franchise any of their restaurants. This creates unique factors surrounding these assets. The competition to purchase a Cracker Barrel is stiff for the few locations that come on to the market. All Cracker Barrel locations are corporate guaranteed, creating a higher demand and lower cap rates for these assets. Most Cracker Barrel net leases properties offer an investor long-term security and no management responsibilities. Their leases generally have rent increases with 5 year options.

Cracker Barrel Old Country Store opened back in 1969 in Lebanon, Tennessee and now has over 658 locations in 45 states. The restaurants serve up home-style country food. Cracker Barrel is a highly differentiated concept that's difficult to list in a particular casual dining category since they have the unique retail store that separates them from most other casual dining restaurants.

Average Cap Rate
4.83%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $3,750,000
NOI $181,125
$/Square Foot $200 - $450
Building SF 8,000 - 10,000
Lot Size 1.6 - 3 Acres
Lease Term 10 Years
Escalations 10% Every 5 Years
Stock Symbol CBRL
Credit Rating
S&P N/A
Moody's N/A
Average Cap Rate Trend
4.78%
2017
5.55%
2018
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Columbia, SC 7.00%
Panama City, FL 5.00%
Sacramento, CA 4.65%