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.