Popeye’s Louisiana Kitchen, or Popeye’s as it is commonly known, is a chain of fried chicken fast food restaurants.
Popeye’s is an attractive net lease investment due to their triple net leases with rental increases and their strong locations. Popeye’s, like most QSRs, sign triple net lease 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. Popeye’s 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 Popeye locations are franchises, making it critical investors evaluate the financial strength of the restaurant operator.
Popeye’s was found in 1972 in New Orleans. In 2017, Restaurant Brands International (RBI), acquired the entire Popeye’s chain. Today, the 2,975 Popeye’s restaurants are part of the larger RBI system that totals 24,791 restaurants across 100 countries and US territories.