Cracker Barrel TENANT OVERVIEW

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.