• No landlord responsibilities
  • Rental increases in the primary term


  • Non-investment grade credit
  • Franchisee operators

Earnings Highlights

Earnings Summary
  • For the third quarter of 2018, system-wide sales growth was driven by net restaurant growth of 7.6% and comparable sales of 0.5%, including US comparable sales of (0.2)%
  • Total revenues for the quarter grew 2.9% versus prior year results
  • Adjusted EBITDA for the quarter grew 20.9% on an organic basis versus prior year results

Tenant Description

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.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,089,169
NOI $113,651
$/Square Foot $700 - $1,000
Building SF 2,000 - 3,000
Lot Size 0.5 - 1.0 Acres
Lease Term 15 - 20 Years
Escalations Varies
Stock Symbol QSR
Credit Rating
S&P B+
Moody's N/A
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Marysville, WA 5.04%
Cincinnati, OH 5.75%
Greenville, NC 5.67%