• No landlord responsibilities
  • Rental increases in the primary term


  • Non-investment grade credit
  • Franchisee operators

Earnings Highlights

Earnings Summary
  • Net sales rose 37% to $1.44 billion, beating expectations of $1.36 billion
  • Popeyes was the only one of its brands to report same-store sales declines after facing tough comparisons to last year’s strong performance
  • Digital sales have grown nearly 60% compared with the same time a year ago
  • The company reported fiscal Q2 2021 net income of $391 million, or 84 cents per share, up from $164 million, or 35 cents per share

Tenant Description

Popeyes Louisiana Kitchen, or Popeyes as it is commonly known, is a chain of fried chicken fast food restaurants.

Popeyes is an attractive net lease investment due to their triple net leases with rental increases and their strong locations. Popeyes, like most QSRs, sign triple net leases that relieve the investor of any landlord responsibilities. The leases will typically feature rental increases in the base term every five years or annually, depending on the lease. Popeyes occupies buildings with strong real estate fundamentals, such as good visibility from a highly trafficked road. Their layout is common among QSR tenants, which makes backfilling the property much easier. Nearly all of the Popeyes locations are franchises, making it critical investors evaluate the financial strength of the restaurant operator.

Popeyes was founded in 1972 in New Orleans. In 2017, Restaurant Brands International (RBI) acquired the entire Popeyes chain. Today, the 2,975 Popeyes restaurants are part of the larger RBI system that totals 24,791 restaurants across 100 countries and US territories.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,010,000
NOI $110,550
$/Square Foot $670 - $1,005
Building SF 2,000 - 3,000
Lot Size 0.5 - 1.0 Acres
Lease Term 15 - 20 Years
Escalations 10% every 5 yrs
Stock Symbol QSR
Credit Rating
Moody's N/A
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Williston, FL 5.00%
Glen Allen, VA 6.00%
Woodland, CA 5.40%
Columbus, OH 5.49%