HOME  |  ABOUT  |  NET LEASE 101  |  CONTACT  |  SUBSCRIBE



7-Eleven
Advance Auto Parts
Affordable Dentures
ALDI
Applebee's
Arby's
Ashley Furniture
AutoZone
Bank of America
BankUnited
BB&T Bank
Best Buy
BMO Harris Bank
Bojangles'
Burger King
Captain D's
Chase Bank
Chick-fil-A
Chipotle
Church's Chicken
Circle K
Cracker Barrel
CVS
Dairy Queen
DaVita
Dollar General
Dollar Tree
Dunkin' Donuts
Family Dollar
FedEx
Fred's Super Dollar
Fresenius Medical Care
Hardee's
Hobby Lobby
IHOP
KFC
Kohl's
Mattress Firm
McDonald's
Napa Auto Parts
O'Reilly Auto Parts
Panera Bread
PDQ
Pep Boys Auto
PNC Bank
Red Lobster
Rite Aid
Sheetz
Shell Oil
Sherwin-Williams
Starbucks
Steak 'n Shake
SunTrust
Taco Bell
TD Bank
Tractor Supply Co.
Verizon
Walgreens
Walmart
Wawa
Wegmans
Wendy's
Zaxby's
  Steak 'n Shake


Average Property & Lease

Average Sale Price$2,001,500
CAP Rate (12mo avg with 10+ lease term)6.07%
NOI$121,043
$/Square Foot$450 - $650
Building Size3,700 +/- sf
Lot Size0.8 - 1.2 acres
Lease Term20 Years
Escalations10% Every 5 Years
CREDIT RATING
B-
S&P
B2
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: December 9, 2016
Net Lease Advisor Overview

Steak 'n Shake pioneered the concept of a 'better burger', by hand-crafting cuts of steak to create its flagship Steakburgers™. Since then, the brand has become one of the most recognized and loyal brands in the restaurant franchising business.

Pros

Cons

  • NNN lease eliminates landlord responsibilities
  • Annual increases on most leases
  • Several lease extensions of five years each
  • Non-investment grade by both S&P and Moody's
  • Must look closely at performance of franchisor across all locations
Tenant Description

Steak 'n Shake was founded in 1934 by Gus Belt who converted a gas station and chicken restaurant in Normal, Illinois, into a hamburger stand. Steak 'n Shake Operations, Inc. is a wholly owned subsidiary of Biglari Holdings Inc. the major shareholder in the business is American entrepreneur Sardar Biglari, who owns Maxim magazine.

The word "steak" stood for steakburger. The term "shake" stood for hand-dipped milkshakes. Gus was determined to serve his customers the finest burgers and shakes in the business. To prove his point that his burgers were exceptionally prime, he would wheel in a barrel of steaks (including round, sirloin, and T-bones) and grind the meat into burgers right in front of the guests. Hence arose the origin of our famous slogan, "In Sight It Must Be Right."

Today the company employs 20,000 people at more than 500 restaurants of which the majority are company-operated but many are franchised. They are undergoing an aggressive expansion. The company has an international development team headquartered in Monaco who are masterminding the expansion across Europe and the Middle East, with Steak 'n Shake restaurants now open in England, France, and Italy.

There are over 550 Steak 'n Shake restaurants in 28 states. They are adding new restaurant franchise territories across the United States, as well as back-filling voids within their traditional core markets.


STEAK 'N SHAKE TREND
CAP Rate

2015 avg: 7.38%

2016 avg: 6.05%

RECENT SALES

Myrtle Beach, SC | 6.00%

Pooler, GA | 6.40%

MORE INFO
www.steaknshake.com
Google Finance: BH
Google News: BH