Hardee’s TENANT OVERVIEW


Net Lease Advisor Tenant Hardees

Pros

  • NNN lease eliminates landlord responsibilities
  • Located in high traffic suburban locations
  • Store configuration adaptable to a variety of alternative uses

Cons

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

Tenant Description

Hardee's has built a position as one of America's premier burger brands, with more than 1,800 quick-service restaurants operating in 30 US states and internationally.

Hardee's typically operates under a 20-year net lease, mostly NNN leases with rental bumps every five (5) years. The average Hardee's freestanding locations range from 2,500 - 3,500 SF situated on 0.60 - 1.50 of land. The prototypical store model offers a drive-thru window and the configuration is adaptable to a variety of alternative uses.

Founded in 1960 by Wilber Hardee and acquired by CKE Restaurants Holdings, Inc. in 1997, Hardee’s® restaurants are located throughout the Southeastern and Midwestern United States. CKE Restaurants Holdings, Inc. (“CKE”) is a privately held company based in Franklin, Tennessee. CKE, through its wholly owned subsidiaries, owns and operates Carl’s Jr.® and Hardee’s®, two regional brands. With both a US and international footprint, Carl’s Jr. Restaurants LLC and Hardee’s Restaurants LLC have over 3,800 franchised or company-operated restaurants in 44 states and 43 foreign countries and U.S. territories.

Average Cap Rate
6.54%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $1,850,151
NOI $111,913
$/Square Foot $400 - $600
Building SF 2,500 - 3,500
Lot Size 0.6 - 1.5 Acres
Lease Term 15 - 20 Years
Escalations 5 - 10% Every 5 Years
Stock Symbol N/A
Credit Rating
S&P N/A
Moody's N/A
Average Cap Rate Trend
6.22%
2019
6.07%
2020
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Camden, AL 6.95%
Madison, IL 6.18%
White House, TN 6.50%