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  Cracker Barrel


Average Property & Lease

Average Sale Price$3,168,688
CAP Rate (12mo avg with 10+ lease term)5.39%
NOI$165,472
$/Square Foot$200 - $450
Building Size8,000 - 10,000 sf
Lot Size1.6 - 3 acres
Lease Term10 Years
Escalations10% Every 5 Years
CREDIT RATING
N/A
S&P
N/A
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

Cracker Barrel is one of the most popular casual dining restaurants and is a high demand net lease investment due to the successful concept. However, they are rare to find in the market and the competition is stiff. All Cracker Barrel locations are corporate guaranteed since they do not franchise any of their restaurants. Most Cracker Barrel net leases properties offer an investor long-term security and no management responsibilities. Their leases generally have rent increases with 5 year options.

Pros

Cons

  • Rental increase throughout primary term of the lease
  • Absolute NNN leases
  • Strong real estate fundamentals
  • Corporate guarantee
  • No credit ratings
  • Low comparable data
Tenant Description

Cracker Barrel Old Country Store opened back in 1969 in Lebanon, Tennessee and now has over 630 locations in 42 states. The restaurants serve up home-style country food such as meatloaf and homemade chicken n' dumplins as well as their signature biscuits using an old family recipe. Cracker Barrel is a highly differentiated concept that's difficult to list in a particular casual dining category since they have the unique retail store that separates them from most other casual dining restaurants. Store retail sales have steadily increased year-over-year. In addition to growing total revenue by 5.9 percent to $2.8 billion, they have successfully implemented new technology and process improvements to reduce annual operating costs by approximately $20 million annualized. During 2015, Cracker Barrel Old Country Store opened six new locations, including one designed with their new store prototype. For 2016, the company is estimating to open seven to eight new restaurants. Over the years, Cracker Barrel has achieved strong net income per share growth, generated substantial cash flow from operations, reinvested in the future growth of the company, and returned capital to shareholder. Cracker Barrel was voted the "Best Family Dining Restaurant" in the annual Restaurants & Institutions magazine Choice in Chains consumers' poll. Cracker Barrel has also received steady recognition from Destinations magazine and the Good Sam Club.


CRACKER BARREL TREND
CAP Rate

2015 avg: 5.31%

2016 avg: 6.80%

RECENT SALES

Mount Airy, NC

$2,477,064 | 5.45%

MORE INFO
www.crackerbarrel.com
Google Finance: CBRL
Google News: CBRL