Net Lease Advisor Tenant Cracker Barrel


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


  • 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 642 locations in 43 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. Store retail sales have steadily increased year-over-year. In addition to growing total revenue by 5.9 percent to $2.8 billion, they have successfully implemented new technology and process improvements to reduce annual operating costs by approximately $20 million annualized. Over the years, Cracker Barrel has achieved strong net income per share growth, generated substantial cash flow from operations, reinvested in the future growth of the company, and returned capital to shareholder. Cracker Barrel was voted the "Best Family Dining Restaurant" in the annual Restaurants & Institutions magazine Choice in Chains consumers' poll. Cracker Barrel has also received steady recognition from Destinations magazine and the Good Sam Club.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $3,168,688
NOI $165,472
$/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
Moody's N/A
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
LaVale, MD 6.00%
Trevose, PA 6.80%