Tenant Description
Arby’s is a quick service restaurant whose menu is centered around sandwiches.
Arby's, a leading player in the quick-service restaurant industry, offers a compelling investment opportunity for net lease investors. With a robust brand presence and a diverse menu that appeals to a wide customer base, Arby's has demonstrated consistent performance and growth. The company's strategic locations, often in high-traffic areas, ensure a steady stream of customers, making it a reliable tenant for net lease properties. Arby's commitment to quality and innovation, combined with its strong marketing campaigns, has solidified its position as a market leader, ensuring long-term stability for investors.
One of the key advantages of investing in Arby's net lease properties is the long-term, triple net lease agreements typically associated with these deals. These leases transfer most of the operational risks, including maintenance, taxes, and insurance, to the tenant, providing investors with a predictable and passive income stream. Additionally, Arby's corporate-backed leases offer an added layer of security, given the company's solid financial standing and extensive experience in the restaurant industry. For investors seeking a low-risk, high-reward addition to their portfolio, Arby's net lease investments present an attractive opportunity with the potential for substantial, stable returns.
Arby's is a 53-year-old legacy brand in the midst of a growth spurt. Arby's Restaurant Group, Inc. owns, operates, and franchises quick-service sandwich restaurants with menu items that include meats, sliders, salads, sides, beverages, and desserts. Arby's was founded in 1964 and is headquartered in Atlanta, Georgia. Roark Capital Group acquired the company in July 2011 and owns 81.5% of the company, with The Wendy's Company owning the other 12.3% after The Arby's Group purchased Buffalo Wild Wings in 2018.
As of April 2024, there are 3,413 Arby's locations in the United States. Arby's presence is spread across 48 states and territories, with Ohio having the highest number of locations at 277, accounting for approximately 8% of all Arby's restaurants in the country. Their franchisees are also expanding their operations. For instance, United States Beef Corporation (US Beef), which owns more than 330 Arby's locations nationwide, plans to expand to 400 locations by 2020. AEG Group LLC, which is owned by former RTM Restaurant Group president John Wade, has 21 Arby's® restaurants and hopes to aggressively expand by 2025. Joe Brumit, a longtime restaurateur who started his career at a burger franchise before becoming an Arby's franchisee has expanded from 13 locations in 1988 to 34 in 2010 and 44 in 2015.
